Imaginon Reports Increased Revenue for the Second Quarter 2000 Period.

Business Editors

SAN CARLOS, Calif.--(BUSINESS WIRE)--Aug. 10, 2000

Company will hold investor telephone and Internet conference call

at 5:00PM EDT on August 11, 2000; call is open to the first 200

individuals who call before 5:00 PM on the day of the call; from

within the United States, call 1-800-492-5642 and from

outside the United States, call 1-212-748-2220.

ImaginOn, Inc.(NASDAQ: IMON) (www.imaginon.com) today announced preliminary financial results for the second quarter ended June 30, 2000.

Final results for the quarter may change prior to the company's 10-QSB filing with the Securities and Exchange Commission.

For the second quarter, ImaginOn achieved net revenue of $139,633 compared to $77,361 in 1999. Reflecting the company's ongoing investments in sales, marketing, and R&D, ImaginOn's net loss for the 2000 quarter was $2,271,812, up from a net loss of $1,499,768 in 1999. Including amortization of the discount and dividends on the company's convertible preferred stock, the net loss applicable to common shareholder's for the current quarter was $2,271,812, or five cents per share, compared with a net loss of $1,748,705, which was five cents per share in 1999.

Commenting on the performance of the company, ImaginOn Chief Financial Officer Jim Newcomb stated that, "Market acceptance of the ImOn.comTV(TM) interactive Internet 'television station in a box' continues to build, resulting in an 81% increase in net revenue for the quarter. We are optimistic that sales of the ImOn.comTV product will continue to increase for the remainder of the year, based on presentations that have already been made to targeted customers."

According to ImaginOn Chief Executive Officer David Schwartz, ImaginOn continues to make important progress in its efforts to make interactive Internet television a practical reality for businesses, schools, content owners, broadcasters, and entrepreneurs, even as it develops new market opportunities for its core technology. "We are not sitting still for one minute," Schwartz said today. "In this most recent quarter, while we increased sales of the ImOn.comTV product in the United States, we also announced plans to expand ImOn.comTV distribution throughout the United Kingdom and Europe, formed a new subsidiary, Wireless Web Data, Inc., concluded a streaming media agreement with Intel Media Services,launched an ImOn.comTV television network, started selling wireless networking products through our INOW subsidiary, and made good progress porting ImaginAuthor to the new Sony PlayStation(R)2 platform."

On August 11, 2000 ImaginOn will host an investor conference call, which will be simultaneously broadcast over the Internet by VCall. The conference call is open for participation, including questions from callers, to the first 200 individuals who call before 5:00 PM on the day of the call. From within the United States, individuals must call 1-800-492-5642. From outside the United States, individuals must call 1-212-748-2220. Once the call is placed, interested participants should hold for the operator and request access to the "ImaginOn Town Meeting."

Investors and other interested parties that wish to listen to the conference call over the Internet can do so through Vcall at http://www.vcall.com. To listen to the live call, individuals should go to the Web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call and an audio transcript will be available 48 hours later at http://www.imaginon.com.

ImaginOn, Inc. is an information technology company focused on developing and marketing broadband interactive Internet television products. ImOn.comTV, ImaginOn's lead product, is a turnkey package that enables any Web site to present an interactive Internet television console within a standard browser window on any computer with a high bandwidth Internet connection. ImOn.comTV features video on demand, viewer directed branching video, automated Web researching, instant Web page links and many additional features customized for individual clients. The company's objective is to deliver interactive TV stations on the Web and intranets to anyone and everyone who wants to communicate, entertain, inform, educate and promote e-commerce in a new way for a new era of electronic communications.

ImOn.comTV and ImaginAuthor are trademarks of ImaginOn and are protected under U.S. Patents.

Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995, or by the Securities and Exchange Commission in its rules, regulations, and releases. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include acceptance of ImaginOn software by developers and users, the successful development of competitive software to ImaginOn's, competitive pricing pressures for ImaginOn software and services, and the availability of financing to complete management's plans and objectives. In addition, other risks are detailed in the Company's periodic reports and in its Form S-1 registration statement declared effective by the Securities and Exchange Commission on May 11, 2000. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.