Press Release

ROCKVILLE, MD – (June 17, 1997) -- Simutronics today announced direct Internet access to its popular online multiplayer games: GemStone IV, DragonRealms and CyberStrike. Simutronics games -- previously available only through online services including America Online (NYSE: AOL), CompuServe, and Prodigy – can also be accessed directly through new, subscription-based services beginning July via sites on the World Wide Web.

"After 10 years in the multiplayer online game business, adding direct Internet access is a great leap forward for Simutronics," said Simutronics President and Founder David Whatley. "By expanding to the Web, we will reach the broadest possible audience, provide more gaming choices and deliver the best service to our customers. Internet game players who have never experienced Simutronics games will be amazed at their speed and depth, since our games are tailor-made for online play."

Simutronics is "one of the very few companies that actually knows how to run online games," according to an April 1997 Forrester Research report, co-authored by Seema Chowdhury, Entertainment & Technology Strategies Analyst. Cited by Forrester as the most successful online game company to date, Simutronics has been profitable for the past seven consecutive quarters. Forrester projects revenues from the Internet gaming market will jump to more than $1.6 billion by the year 2001.

"Simutronics is committed to providing universal access to our online gaming world," said Simutronics Executive Vice President Neil Harris. "The best way to maximize our business in this growing market is to keep the cost of game play affordable and to introduce advertising revenue into the mix. Our low monthly subscription fees are a testimony to this philosophy."

Simutronics Games Most Popular Online

Players are now logging more than two million hours of paid play in a single month on Simutronics games online. Just as chat rooms have become one of the most popular uses of the Internet, MUD-style, role-playing games such as GemStone III and DragonRealms are by far the most popular titles online. GemStone IV was the first online game to reach one million paid hours in a month. As with its spin-off DragonRealms, successful play in GemStone IV depends on interaction and community building activities with other players.

The four games coming to the World Wide Web are :

· GemStone IV is a MUD-style, fantasy role-playing game set in a medieval world of magic where players team up with powerful allies and earn rewards through feats of daring. Ever-evolving worlds are created in GemStone IV by the GameMasters, who are constantly changing the playing field which keeps the game exciting. In the seven years since its creation, nearly one million people have played GemStone IV, making it the number one online game of all time.

· DragonRealms, a spin-off of GemStone IV, is a very rich MUD-style game designed to focus the player on role-playing. Details about the game system are hidden, so the player has more of a feel of participating in a fantasy adventure. Like any living world, the game is constantly growing and introducing new experiences and quests. In less than one year, DragonRealms has grown to be the number two game in the online world, with over 800,000 paid usage hours per month.

· CyberStrike is an award-winning, true, 3D action game with arcade action and stereo sound. CyberStrike delivers real-time interaction as teams of robot Cyberpods compete in a virtual cityscape. Designed from the ground up for fast action over the Internet and online services, CyberStrike also boasts tournament play, with scores of teams vying for the season championship. CyberStrike 2 is scheduled for release in Q4 of this year.

In addition to the Internet sites, GemStone IV will also be available on Prodigy, CompuServe and Genie. DragonRealms will also continue to be available on Prodigy and Genie. All titles may be accessed via America Online.

Gamers’ Demographics Have Appeal for Advertisers

The demographics of Simutronics’ game players create an attractive profile for advertisers. The two most popular games, GemStone IV and DragonRealms, have a customer ratio of 85 percent male and 15 percent female players, with a median age of 40 and a median annual household income of $65,000. For CyberStrike, the players are 99 percent male, and the biggest group is in the highly coveted 18-25 year old age range.

Unlike most Web sites, Simutronics’ game sites can deliver highly targeted advertising to players based on their demographics and preferences provided through customer profile information. For example, Simutronics can ensure automobile advertising is displayed only to players over 16 years old.

Pricing and Availability

The new subscription-based services will offer access to GemStone IV or DragonRealms for $9.95 each per month, with access to CyberStrike priced at $7.95 per month. Premium subscriptions, enabling players to develop multiple characters and receive priority VIP treatment in online gaming events, will be offered for select games at an additional $20 per month.

Until July 19, current Simutronics customers will be given priority registration for play on the Internet. To sign up for any Simutronics game, players should the web site for that game. To advertise on Simutronics’ game sites, send email to adsales@simutronics.com or call (301) 670-7935.

About Simutronics

Simutronics Corp., the leader in multiplayer online games, specializes in the design, development and management of games created specifically for collaborative play in virtual online communities. Available on the World Wide Web and through major online services and publishers including Time Warner and Viacom, Simutronics’ titles are the leaders in online play, serving more than 5,000 simultaneous players nightly and 200,000 players per month with usage well over 2 million user-hourly monthly. Founded in 1987, Simutronics Corp. is a privately held corporation with offices in St. Charles, MO and Rockville, MD.