Skyline Multimedia Entertainment Inc. announces two year agreement with Sega Enterprises Inc. for virtual reality systems; Skyline Multimedia will supply systems to recently constructed Sega facility; company establishes Virtual Reality subsidiary

Business Wire, Nov 22, 1995

NEW YORK--(BUSINESS WIRE)--Nov. 22, 1995--Skyline Multimedia Entertainment, Inc. (NASDAQ: SKYL, SKYLU, SKYLW, SKYLZ) today announced that it has signed a two year agreement with Sega Enterprises Inc. (U.S.A.), a leader in home and location-based entertainment, for two virtual reality systems.

Under the terms of the agreement, the Company will supply, service and maintain two Virtuality 2000 Systems for use at the new Sega facility located at the Entertainment Center in Irvine, California. Installation of the virtual reality systems has been completed, and will be open to the public this week. Additionally, Skyline Multimedia will provide continued support by supplying the latest and most popular software currently available in the marketplace. As a means of providing these products and services, the Company has formed a new subsidiary, Skyline Virtual Reality, Inc.

This new Sega City facility was developed by Sega Enterprises, U.S.A., which has since entered into a joint venture with DreamWorks SKG, and MCA. This entertainment center will include high- tech attractions, virtual reality games, and is one of many centers expected to be built by the joint venture around the world.

Mr. Zalman Silber, President and CEO of the Company, stated, "We are very pleased to be working with Sega and anticipate this to be the beginning of a long and mutually rewarding relationship."

Skyline Multimedia Entertainment, Inc. is a holding company engaged in the development and operation of state-of-the-art, film-based simulator attractions at popular tourist locations worldwide, including the New York Skyride, the first simulator attraction in New York City, located within the Empire State Building -- New York's number one tourist attraction.

CONTACT: Mr. Steven Schwartz

Chief Financial Officer

SKYLINE MULTIMEDIA ENTERTAINMENT, INC.

(212) 564-2224

or

Gordon H. Wolfe

Jennifer Hendrickson

Barbara Yu (Media)

WOLFE AXELROD ASSOCIATES

(212) 370-4500