Sound Source Interactive Wins Bidding War For Licensing Agreement of Universal Studios' Classic 'Babe' Franchise

Business Wire, August 10, 1998

CALABASAS, Calif.--(BUSINESS WIRE)--Aug. 10, 1998--Sound Source Interactive Inc. (Nasdaq:SSII) Monday announced that it has successfully bid for the licensing rights to create interactive educational CD-ROMs based on the popular characters and adventures from Universal Pictures' Academy Award-winning film, "Babe," the No. 1 live-action video of 1996.

The three-year, six-title agreement encompasses CD-ROMs based on the original film, as well as the new, upcoming sequel, "Babe: Pig in the City," coming from Universal Pictures this November. The deal is for worldwide exclusive rights in all languages.

"Babe is one of the hottest children's movie properties around," noted Vincent J. Bitetti, chairman and chief executive officer of Sound Source Interactive. "We are excited that we prevailed over the many suitors who were trying to get the interactive education licensing rights for this great franchise. Our enthusiasm for these titles, and our experience with the kind of national promotions they require, make it very gratifying to be working with a great partner like Universal Studios."

Sound Source Interactive's first title based on the franchise was Babe Interactive Moviebook CD-ROM, launched in 1997. The title will be re-packaged and re-launched to the public on September 22 -- to kick off the company's Babe offerings for fourth quarter, 1998.

Two new titles, Babe Pre-School Adventure and Babe Early Reader CD-ROMs, are now in development for fall. Future tie-ins include participation in a Discover Card national promotion with the movie "Babe: Pig In the City." One element of the promotion features these products in a Book of Values which will be sent to Discover Cardmembers via direct mail. Offers include special Cashback Bonus awards for Cardmembers buying these products with their Discover Card.

In addition, a special offer for the "Babe" licensed CD-ROMs will also be included in 4 million booklets being provided to customers at 40,000 retailers nationwide offering Kodak (NYSE:EK) Premium Processing. Sound Source Interactive currently ranks as the sixth-largest publisher of educational software in the nation, according to PC Data.

The company develops and publishes licensed children's software products, including a line of Animated MovieBooks, Activity Centers and Learning Adventures, each designed to be a fun and educational experience.

Notably, The Land Before Time Animated MovieBook was named one of the top 50 software products for 1997 by Newsweek Magazine and received a 1997 EdPress Educational Software Award. Additionally, Sound Source produces a line of Interactive Games, such as Star Trek: The Game Show, and The Abyss: Incident at Europa and Olympus: War of the Gods, scheduled for release in fall, 1998.

The company licenses from Universal Studios (NYSE:VO), Viacom (AMEX:VIA.B) (Paramount Pictures Corp.), Warner Bros. (NYSE:TWX), CBS Entertainment (NYSE:CBS), MGM/UA, Harvey Entertainment Co. (Nasdaq:HRVY), 20th Century Fox (NYSE:NOP-A), New Line Cinema and Carolco Pictures.

Universal Studios Consumer Products Group is part of Universal Studios (www.universalstudios.com), a diversified entertainment company and a worldwide leader in motion pictures, television, music, home and location-based entertainment. Universal Studios is a unit of The Seagram Company Ltd., a global beverage and entertainment company.

35mm color slides, TIFF files of the packaging, as well as review copies of Babe-The Moviebook CD-ROM, are available upon request.

CONTACT: Universal Studios Consumer Products Group

Debra Jackman, 818/777-3188

818/866-1584, Fax

or

Abrams Creative Services, Tarzana, Calif.

Al Abrams, 818/343-6365

818/343-6366, Fax

818/866-0226, Fax

http://www.abrams-creative.com