Entertainment Arts, Inc. Subsidiary, HolograFX, Inc., Signs Exclusive License Agreement.

EMERSON, N.J. -- Entertainment Arts, Inc. (Pink Sheets: ETAR) today announced its operating subsidiary, HolograFX, Inc. has signed a multi-year exclusive distribution agreement for Southern Africa with AD OUTPOST (EDMS) BPK. The agreement contains specific benchmarks to be attained by AD OUTPOST in order for the agreement to remain in force. The benchmarks include yearly purchase goals and licensing fees that total a minimum of $2.2 Million during the ten-year term of the agreement.

AD OUTPOST is a major Southern African outdoor sign company. They will exclusively market HolograFX 3D "free-floating" holographic technology in a new company division focused on expansion into indoor signage and advertising.

Mr. Wilhem Krog, Managing Director stated, "AD OUTPOST recognizes the enormous creative potential for this unique technology. It attracts attention and will stop people in their tracks! This exciting technology will have a positive effect in the indoor signage industry."

This Licensing Agreement grants AD OUTPOST an exclusive right to sell HolograFX patented technology in Southern Africa. The territory includes the countries of: Angola, Botswana, Lesotho, Malawi, Mozambique, Namibia, South Africa, Swaziland, Zambia, DRD, Kenya, Tanzania and Uganda.

About Entertainment Arts, Inc.

Entertainment Arts, Inc.'s (www.entertainmentartsinc.com) operating subsidiaries are HolograFX, Inc. (www.holografxinc.com) and Song Factory, Inc. HolograFX has an exclusive worldwide licensing agreement in a patented 3D holographic technology to market, sell, manufacture and license this unique product. Song Factory, Inc. produces, markets and licenses karaoke content. Both companies are headquartered at 27 Bland Street, Emerson, NJ 07630. HolograFX has a Las Vegas office at 133 N. Gibson Road, Henderson, NV.

Certain statements in this press release constitute "forward-looking statements" relating to Entertainment Arts, Inc. and its subsidiaries (the "Company") within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "would," "should," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.