First-Ever Made for the Internet Movie Makes Jump to Television At NATPE.

NEW YORK/LOS ANGELES--(BUSINESS WIRE)--Jan. 12, 1999--

Kaleidoscope Media To Distribute Gravity Angels(TM) - Two-Hour 3-D

Animated Science Fiction Thriller - From Brilliant(TM) Digital

Entertainment

Brilliant Digital's Technology Allows for "First Run Reruns"

Kaleidoscope Media Group, Inc. (OTC BB: KMGG) has entered into an agreement with Brilliant Digital Entertainment, Inc. (AMEX: BDE) for the distribution of "Gravity Angels," the Internet's first full-length, 3-D digitally animated movie, according to Henry Siegel, Kaleidoscope Media's CEO, and Kevin Bermeister, president of Brilliant Digital.

The two-hour science fiction thriller will be offered at NATPE for domestic and international distribution. Home video rights are also available through KMG. Gravity Angels, which presently is a available via Brilliant's web site (http://www.multipathmovies.com) as an interactive, 3-D digital Multipath(TM) Movie, represents the world's first ever Internet production to be offered for sale to the broadcast and direct-to-video markets.

Brilliant Digital Entertainment is the production studio responsible for creating Gravity Angels and Multipath Movies, a new genre of interactive entertainment. Multipath Movies are three dimensional, animated stories each with multiple user-influenced plot alternatives that lead to a variety of distinct conclusions. Brilliant's proprietary production technology is scaleable, allowing for the creation and distribution of its entertainment products via Internet, CD-ROM, DVD, television and home video. From a cost perspective, Brilliant can create products with multiple 3-D output formats, both interactive and non-interactive, all for about the same price as traditional 2-D animation. And because Brilliant's interactive productions have multiple plot turns and twists, one episode can be exported into a variety of broadcast versions, creating a number of unique "re-runs" for each episode.

Henry Siegel commented, "In Gravity Angels Brilliant Digital has demonstrated its ability to cost effectively produce top quality animated entertainment that translates well into a variety of formats including broadcast.

Further differentiating Brilliant from other animation producers is its Multipath production architecture which enables the creation of multiple versions of the same episode. This capability is particularly exciting for the television syndication market because each episode can have a number of different versions, increasing its shelf life and value in the re-run market."

"The ability to easily and cost effectively convert and sell Internet products into the broadcast and home video world is made possible by our proprietary animation software tools. Our tools allow us to create scalable animation in one production process," said Brilliant's Kevin Bermeister. "This means we can produce for the Internet and CD-ROM and then scale-up the output resolution for direct-to-video, DVD and broadcast platforms. Importantly, we can reach all of these end markets for less than it typically costs to produce one half-hour of traditional cel animation for broadcast, and our tools also facilitate international distribution as we can easily accomplish digital lip synchronization for different languages."

Gravity Angels is an original movie created by Brilliant's own production team. It takes place in the year 2098 on the moon Ganymede where six misfits of Earth's society have been banished for twelve months. The only problem is that most people on Ganymede turn up dead.

Brilliant's Internet site currently offers sixteen Multipath Movie episodes based on characters such as Xena, Ace Ventura and Popeye. These titles are also available as CD-ROMS.

About Brilliant Digital Entertainment:

Brilliant Digital Entertainment (http://www.bde3d.com) has formed strategic alliances with Packard Bell NEC, CompuServe, British Telecom, DVD EXPRESS and Mediadome and to distribute its Multipath Movies over the Internet's World Wide Web. Brilliant has signed content license agreements with DC Comics, Morgan Creek Productions, King Features and Universal Studios, Kiss Digital and Bantam Doubleday Dell Books for Young Readers for the Choose Your Own Adventure series of interactive books. The company is headquartered in Los Angeles, CA with offices in Bondi Junction and Double Bay, Australia and Middlesex, England.

About Kaleidoscope Media Group:

Kaleidoscope Media Group, Inc. is a vertically integrated sports and entertainment company with offices in New York and Los Angeles. Its operating companies are SeaGull Entertainment, Hollywood Connection, LLC (direct marketing) and Kaleidoscope Entertainment (sports). Its current sports properties include golf, ice skating, boxing and fitness.

Information about Forward Looking Statements

Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors. The ability of the Company to successfully sell Gravity Angels and linear versions of its other titles is subject to risks and uncertainties including (i) the ability of the Company to properly forecast market trends and consumer preferences, (ii) broadcaster and consumer acceptance of the content of Gravity Angels and Brilliant's other titles, (iii) the adverse affect of competition from traditional developers of broadcast and home video content including major motion picture studios and television production companies. Information about these and certain additional factors is contained in the Company's most recently filed Form 10-KSB report and 10-QSB report and are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to our investor relations company, Jaffoni & Collins at 212-835-8500 or [e-mail].