ImaginOn Announces Redemption of Series D and Series E Convertible Preferred Stock

Business Wire, May 10, 1999

SAN CARLOS, Calif.--(BUSINESS WIRE)--May 10, 1999--

ImaginOn, Inc. (the "Company") (NASDAQ: IMON) today announced that it has notified holders of the Company's Series D 4% Convertible Preferred Stock and Series E 4% Convertible Preferred Stock of its intention to redeem those shares. The redemption will be completed on or before Friday, May 21, 1999. Proceeds to fund the redemption were raised through a private placement of the Company's Series F 12% Convertible Preferred Stock, the terms of which were deemed more favorable to the Company than those of the Series D and Series E.

ImaginOn, Inc., operating through its wholly-owned subsidiary, ImaginOn.com (www.imaginon.com), engineers, produces and sells business and consumer software for CD-ROM and network users, including: WebZinger, its product line of Web Research Assistants; sellONstream, its e-commerce software solution; and WorldCities 2000 Web/CD travel planners. ImaginOn, IncAEs wholly-owned subsidiary, INOW, Inc., (www.inow.com) provides Internet services including high-speed connectivity, website hosting, website design and e-commerce support.

WorldCities 2000, sellONstream, and WebZinger are trademarks of ImaginOn.com and are also protected under a U.S. Patent and a U.S. Patent Pending.

Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe-harbor" provision of the Private Securities Litigation Act of 1995. These forward-looking risks are subject to risks and uncertainties that may cause actual results to differ materially. These risks are detailed in the Company's periodic reports and in its Form S-3/A-2 registration statement filed on April 13, 1999 with the Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.