Interplay Entertainment Completes Financial Capitalization

The Company Completes a $12.7 Million Private Placement of Common Stock

And Secures a $15 Million Line of Credit



Apr 16, 2001, 01:00 ET from Interplay Entertainment Corp.

    IRVINE, Calif., April 16 /PRNewswire/ -- Interplay Entertainment Corp.
 (Nasdaq:   IPLY) announced today that they have completed a private placement of
 common stock raising approximately $12.7 million in equity capital.
 Investment bankers Roth Capital Partners arranged the placement and sold
 shares at $1.5625 to a group of investors lead by Special Situations Fund with
 Fidelity Management & Research Company, on behalf of funds managed by it.  In
 connection with such transaction, the Company issued to each investor a
 warrant to purchase one share of common stock at $1.75, one half of which can
 be exercised immediately with the other half exercisable under certain
 circumstances based on the future trading price of the Company's common stock,
 as defined.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991130/IPLYLOGO )
     Interplay also announced that it has secured a new $15 million, three-year
 working capital line of credit with LaSalle Business Credit, Inc.  Advances
 under the line are limited to an advance formula of qualified receivables and
 inventory, and bear interest at the bank's prime rate, or at LIBOR plus 2.5%
 at the company's option.  The line is subject to review and renewal by the
 bank on April 30 of each year during the term, and is secured by substantially
 all of the Company's assets, plus a $2 million personal guarantee from the
 company's Chairman and Chief Executive Officer.
     The proceeds from the working capital line of credit and the private
 placement have been used to reduce debt, replace the Company's existing line
 of credit expiring in April 2001, and provide working capital for future
 operations.  The Company reduced its outstanding bank debt from $24.5 million
 to $5.5 million on the day the previous line of credit was replaced.  The
 Company estimates that reduced borrowings under a lower interest rate could
 decrease its interest expense by approximately $1.5 million in 2001 compared
 to 2000.  Upon replacing its previous line of credit, the guarantee previously
 provided by Titus Interactive was released, which eliminated the terms of the
 Company's Series A Preferred Stock which could have resulted in Titus' shares
 of preferred stock being convertible into an additional 35 million shares of
 common stock under certain events of default pursuant to the company's
 previous line of credit.
     Continuing on the transaction, Fargo stated that "This recent financing
 has reduced our debt to the lowest point in several years.  It improves our
 financial stability so that we can benefit from our investments in
 next-generation console games soon coming to market.  As the industry gains
 momentum in the latter part of this year, Interplay should be well positioned
 to capitalize on the strongest titles planned for release in the next few
 months."
     Interplay Entertainment Corp. is a leading developer, publisher and
 distributor of interactive entertainment software for both core gamers and the
 mass market.  Interplay currently balances its development efforts by
 publishing for personal computers and current generation video game consoles.
 Interplay releases products through Interplay, Shiny Entertainment, Digital
 Mayhem, Black Isle Studios, 14 Degrees East, its distribution partner and its
 wholly owned subsidiary, Interplay OEM, Inc.  More comprehensive information
 on Interplay and its products is available through its worldwide web site at
 www.interplay.com
 
     For further information please contact Lisa Bucek of Interplay
 Entertainment Corp., 949-553-6655, lbucek@interplay.com;  For Investor
 Relations inquiries, please contact Patrick Sutton, pat@liolios.com, or Chris
 Rosgen, chris@liolios.com, 949-574-3860.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     Statements contained in this release except for historical information are
 forward-looking statements that are based on current expectations and involve
 risks and uncertainties.  Without limiting the generality of the foregoing,
 words such as "may," "will," "expect," "believe," "anticipate," "intend,"
 "could," "estimate," or "continue" or the negative or other variations thereof
 or comparable terminology are intended to identify forward-looking statements.
 The risks and uncertainties inherent in such statements may cause actual
 future events or results to differ materially and adversely from those
 described in the forward-looking statements.  For example, there can be no
 assurance that the Company's anticipated operating results will not materially
 change.  Additional important factors that may cause a difference between
 projected and actual results for Interplay include, but are not limited to,
 the completion of a financial and accounting closing for the period, future
 capital requirements, that equity or bank financing will be available on terms
 satisfactory to the Company or at all, risks of loss of the Company's listing
 on the Nasdaq National Market, risk of delays in development and introduction
 of new products, dependence on new product introduction which achieve
 significant market acceptance and the uncertainties of consumer preferences,
 risks of product returns and markdown allowances, dependence on third party
 software developers for a significant portion of new products, risks of rapid
 technological change and platform change, intense competition, seasonality,
 risks of product defects and resulting returns, dependence upon licenses from
 third parties, risks associated with, dependence upon third party
 distribution, dependence upon key personnel and risks associated with
 international business, intellectual property disputes, the Company's ability
 to continue as a going concern, and other factors discussed in the Company's
 filings from time to time with the Securities and Exchange Commission,
 including but not limited to the Company's annual reports on Form 10-K and the
 Company's subsequent quarterly filings on Form 10-Q.  Interplay disclaims any
 obligation to revise or update any forward-looking statements that may be made
 from time to time by it or on its behalf.
 
 

SOURCE Interplay Entertainment Corp.
    IRVINE, Calif., April 16 /PRNewswire/ -- Interplay Entertainment Corp.
 (Nasdaq:   IPLY) announced today that they have completed a private placement of
 common stock raising approximately $12.7 million in equity capital.
 Investment bankers Roth Capital Partners arranged the placement and sold
 shares at $1.5625 to a group of investors lead by Special Situations Fund with
 Fidelity Management & Research Company, on behalf of funds managed by it.  In
 connection with such transaction, the Company issued to each investor a
 warrant to purchase one share of common stock at $1.75, one half of which can
 be exercised immediately with the other half exercisable under certain
 circumstances based on the future trading price of the Company's common stock,
 as defined.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19991130/IPLYLOGO )
     Interplay also announced that it has secured a new $15 million, three-year
 working capital line of credit with LaSalle Business Credit, Inc.  Advances
 under the line are limited to an advance formula of qualified receivables and
 inventory, and bear interest at the bank's prime rate, or at LIBOR plus 2.5%
 at the company's option.  The line is subject to review and renewal by the
 bank on April 30 of each year during the term, and is secured by substantially
 all of the Company's assets, plus a $2 million personal guarantee from the
 company's Chairman and Chief Executive Officer.
     The proceeds from the working capital line of credit and the private
 placement have been used to reduce debt, replace the Company's existing line
 of credit expiring in April 2001, and provide working capital for future
 operations.  The Company reduced its outstanding bank debt from $24.5 million
 to $5.5 million on the day the previous line of credit was replaced.  The
 Company estimates that reduced borrowings under a lower interest rate could
 decrease its interest expense by approximately $1.5 million in 2001 compared
 to 2000.  Upon replacing its previous line of credit, the guarantee previously
 provided by Titus Interactive was released, which eliminated the terms of the
 Company's Series A Preferred Stock which could have resulted in Titus' shares
 of preferred stock being convertible into an additional 35 million shares of
 common stock under certain events of default pursuant to the company's
 previous line of credit.
     Continuing on the transaction, Fargo stated that "This recent financing
 has reduced our debt to the lowest point in several years.  It improves our
 financial stability so that we can benefit from our investments in
 next-generation console games soon coming to market.  As the industry gains
 momentum in the latter part of this year, Interplay should be well positioned
 to capitalize on the strongest titles planned for release in the next few
 months."
     Interplay Entertainment Corp. is a leading developer, publisher and
 distributor of interactive entertainment software for both core gamers and the
 mass market.  Interplay currently balances its development efforts by
 publishing for personal computers and current generation video game consoles.
 Interplay releases products through Interplay, Shiny Entertainment, Digital
 Mayhem, Black Isle Studios, 14 Degrees East, its distribution partner and its
 wholly owned subsidiary, Interplay OEM, Inc.  More comprehensive information
 on Interplay and its products is available through its worldwide web site at
 www.interplay.com
 
     For further information please contact Lisa Bucek of Interplay
 Entertainment Corp., 949-553-6655, lbucek@interplay.com;  For Investor
 Relations inquiries, please contact Patrick Sutton, pat@liolios.com, or Chris
 Rosgen, chris@liolios.com, 949-574-3860.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995:
     Statements contained in this release except for historical information are
 forward-looking statements that are based on current expectations and involve
 risks and uncertainties.  Without limiting the generality of the foregoing,
 words such as "may," "will," "expect," "believe," "anticipate," "intend,"
 "could," "estimate," or "continue" or the negative or other variations thereof
 or comparable terminology are intended to identify forward-looking statements.
 The risks and uncertainties inherent in such statements may cause actual
 future events or results to differ materially and adversely from those
 described in the forward-looking statements.  For example, there can be no
 assurance that the Company's anticipated operating results will not materially
 change.  Additional important factors that may cause a difference between
 projected and actual results for Interplay include, but are not limited to,
 the completion of a financial and accounting closing for the period, future
 capital requirements, that equity or bank financing will be available on terms
 satisfactory to the Company or at all, risks of loss of the Company's listing
 on the Nasdaq National Market, risk of delays in development and introduction
 of new products, dependence on new product introduction which achieve
 significant market acceptance and the uncertainties of consumer preferences,
 risks of product returns and markdown allowances, dependence on third party
 software developers for a significant portion of new products, risks of rapid
 technological change and platform change, intense competition, seasonality,
 risks of product defects and resulting returns, dependence upon licenses from
 third parties, risks associated with, dependence upon third party
 distribution, dependence upon key personnel and risks associated with
 international business, intellectual property disputes, the Company's ability
 to continue as a going concern, and other factors discussed in the Company's
 filings from time to time with the Securities and Exchange Commission,
 including but not limited to the Company's annual reports on Form 10-K and the
 Company's subsequent quarterly filings on Form 10-Q.  Interplay disclaims any
 obligation to revise or update any forward-looking statements that may be made
 from time to time by it or on its behalf.
 
 SOURCE  Interplay Entertainment Corp.