Quetzal Studios Investment Inc. Makes Announcement.

MONTREAL--(BUSINESS WIRE)--March 27, 1998--Yves Marmet, President of Quetzal Studios Investments Inc. (Alberta Stock Exchange: QTZ.A.), a Junior Capital Pool Company trading on The Alberta Stock Exchange, is pleased to announce that the Company has entered into a letter of intent dated March 26, 1998 and agreed, subject to the regulatory and shareholder approval, to complete a Major Transaction in accordance with Alberta Securities Commission Policy 4.11 and Rule 46-501.

The proposed Major Transaction consists of the arm's lenght acquisition of all the issued and outstanding shares of 2742471 Canada Inc. doing business under the name of Fun Key ("Fun Key"). Fun Key is a privately-owned company based in Montreal with main operations located at The Old Port of Montreal.

Fun Key's principal business is to develop, manufacture, operate, own and lease, alone or in partnership, themed amusement attractions (Fun Key(TM) Towns) comprising its own proprietary hardware and related software, and to distribute its 3-D software tools to multimedia companies and major corporations worldwide.

SOS Labyrinthe, established in 1991 in the Old Port of Montreal, is Fun Key's first Fun Key Town concept and consists of a giant mega- labyrinth filled with interactive challenges. Fun Key is presently developing two Fun Key Towns concepts internationally and will also:

- develop, manufacture, operate, own and lease Fun Key(TM) Towns in both permanent and transportable versions for the national and international markets, as opportunities become available;

- create and install in each Fun Key(TM) Towns the MasterTracker, a player management system whose function will be to identify, follow and interact with each guest. By recording each and every players personal experiences, the system also permits production of individualised personal mementoes of each guest's experience, such as records of accomplishment, digitised "in action" photographs and adventure storybooks;

- continue to develop, and market three proprietary interactive 3-D software tools that facilitate the creation of multi-user environments featuring virtual personas (avatars) with chat capabilities. These software tools will consist of a 3-D navigation engine (external module residing in the user's computer, compatible with Netscape and Microsoft Explorer), a server (database and controller residing in the host's central computer) and a SDK (software development kit) for 3-D world designers.

The acquisition of the Fun Key shares from the Fun Key shareholders, consisting principally of Guy Chartier and Paul Chartier, will result in a reverse take-over of Quetzal by the Fun Key shareholders. The parties agreed that the aggregate purchase price for the Fun Key shares shall be $2,215,000.00 payable by the issuance of approximately 10,700,000 Class "A" Shares of Quetzal at a deemed value of approximately $0.20 per share and the payment of $75,000.00. It is expected that the new board of directors of Quetzal will consist of Yves Marmet, Marie-Helene Pinard, Luc Moreau, Yves Rajotte and three other Nominees, who's will be revealed at a later date. Guy Chartier is one of the founders of Fun Key and currently serves as President. He is responsible for overseeing growth and strategic planning of the company. Mr. Guy Chartier is a graduate of the renowned Boston's Northeastern University Business Executive Program and has over 20 years of experience in the Hospitality/Leisure industry. Mr. Paul Chartier is a founder of Fun Key and as Vice-President - Creative oversees the creation and development of Fun Key's line of products. Mr. Paul Chartier is a games master imagineer, having immersed himself in interactive play, themed events and attractions for over 25 years.

One of the conditions of closing of the Major Transaction shall be that, subject to market conditions, Quetzal complete a private placement of a minimum 1,000,000 and a maximum of 3,000,000 Units of Quetzal with arm's length investors at the price of $0.50 per Unit, each Unit being convertible into one Class "A" Share and one Class "A" Share Purchase Warrant and each Class "A" Share Purchase Warrant entitling the Holder to acquire one Class "A" Share of Quetzal at an exercise price of $0.65 for a period of 18 months.

The acquisition of the Fun Key shares and the private placement are expected to be completed concurrently and shall constitute Quetzal's Major Transaction in accordance with Alberta Securities Commission Policy 4.11 and Rule 46-501. The completion of the Major Transaction is subject to satisfactory completion of a formal agreement among the parties and appropriate due diligence enquiries and investigations by the parties.

Mr. Marmet believes that: "Fun Key's unique expertise and vision will provide the bridge linking live and virtual entertainment. This acquisition will permit Quetzal to participate in the explosive growth of the Entertainment and Multimedia Industries, which represent one of the most lucrative segment of the global economy today and for many years to come." -0-

The Alberta Stock Exchange has neither approved nor disapproved

of the information contained herein.

CONTACT: Quetzal Studios Investments Inc.

Marie-Helene Pinard, 514/762-3222