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Company To Launch Innovative New Computer Software Product Category

Laguna Niguel, CA, September 5, 1996 -- Proclaiming it to be not just a new product line, but the debut of an entirely new product category, Richard Gnant, CEO of best-selling computer software publisher Sirius Publishing, unveiled the company's latest innovation, MovieCD. The MovieCD product line consists of a wide variety of entertainment programs available on CD-ROM.

On November 1, the company plans to initially release 40 to 60 different titles, ranging from major motion pictures to music videos to children's entertainment and more. Additionally, Sirius has targeted 500 new MovieCD titles for release during 1997. Retail prices will be similar to sell-through video and audio CDs ranging from $9.95 to $24.95 for each individual title.

"We are about to transform the personal computer into a personal entertainment center," Gnant said. MovieCD delivers VHS quality, full-screen, full-motion video on computer screens. It plays on the existing installed base of CD-ROM equipped computers, without the use of MPEG or other hardware. "For nearly half a decade, consumers have desired to watch TV-like video on their computers," Gnant continued. "Sirius is now able to fulfill those wishes, and, in the process, bring consumers an entirely new form of entertainment for their PC," he added.

MovieCD titles are linear in nature, with no interactive elements, and play similar to home video cassettes. Each MovieCD will also include an on-screen "Virtual Remote" containing VCR type controls already familiar to consumers including: play, stop, pause, frame advance/reverse, slow motion, on-screen fast forward/reverse, and a special search function that instantly allows the user to search to the hour, minute and second of a program.

"We believe that consumers will embrace non-interactive entertainment for their computer," said Michael Weiss, Sirius' Vice President of Marketing. "Many quality interactive multimedia titles have been released, but with the exception of a few top-selling titles, consumers just aren't purchasing these products in the quantities that the computer industry has hoped," he continued. "Rather than spending countless hours learning how to play intricately designed games, MovieCD users will be able to simply insert a CD-ROM disc and be fully entertained immediately. We anticipate that the combination of 'instant entertainment' and low retail price points will drive consumers to purchase MovieCD titles in mass. We believe these components will also result in a drastic increase in customer traffic in computer software stores," Weiss added.

"We are targeting a large, diverse group of users including early adapters -- the 'must have the latest gadget' crowd; business travelers -- who will turn their portable personal computer into a portable personal entertainment center; college students -- who are more likely to have computers in their dorm rooms than VCR's; children; and movie/video buffs," said Weiss. "We believe office workers and telecommuters will be another huge market because MovieCD discs contain a resizing option, allowing the user to work in other applications while running MovieCD in the corner of the screen. Imagine being able to watch a movie or listen to a music video while you are working on your computer," proclaimed Weiss.

"MovieCD stands apart from other failed attempts at delivering linear entertainment because the market already exists. Unlike Cdi, 3DO, or MPEG equipped computers, MovieCDs work on the already existing installed base of over 25 million CD-ROM equipped computers. Consumers need not purchase new machines or additional hardware for their computers to play this product," said Gnant.

The secret to MovieCD is the use of an advanced video software-only compression technology developed over the past 2 1/2 years by Sirius' sister company, Motion Pixels. This technology, also named Motion Pixels, does not require the use of MPEG and will play on computers equipped with a 486/66 processor or higher with 256 Kb cache, 8 Mb Ram, 2x CD-ROM drive with 10 Mb of free space. It also requires a sound card (Sound Blaster or equivalent), speakers, mouse and Windows 3.1 or Windows 95. A single CD-ROM disc can hold approximately 65 minutes of video.

Sirius has acquired a wide selection of titles from a variety of producers. The product mix will include full-length feature films ranging from recent blockbusters and popular movie genres, including science fiction, horror, action adventure, comedy to cult classics. MovieCD also will include performance comedy, music videos, children's cartoons and entertainment, sports highlights and bloopers, computer animation, Japanimation and entertainment for mature audiences.

"It's an exciting and eclectic selection of products that will appeal to our target markets. Our initiate slate will be kept confidential for the next few weeks," said Michael Weiss. Sirius will also launch a website, located at www.moviecd.com, recreating a virtual "Hollywood" and constantly updating users on current, new and upcoming releases.

"Sirius is no stranger to developing innovative multimedia products for the computer software industry," said Gnant. Sirius is credited with creating the industry's popular multipack product category with their introduction of the best-selling 5ft 10 PAK brand of multipacks in 1994. Since that introduction, the multipack product category has become one of the industry's most profitable products. "Sirius' charter is to provide our customers with products that represent value and quality," added Gnant. "Our new MovieCD product line will be no exception," he continued.

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Sirius Publishing, Inc. is a leading multimedia technology developer and marketer with headquarters in Scottsdale, Arizona. Sirius' products are sold in more than 15,000 stores and in 70 countries.

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