Parallax Entertainment, Inc. Files For Patent On New CD Jewel Case

Business Wire, March 12, 2002

Business Editors

DALLAS--(BUSINESS WIRE)--March 12, 2002

Parallax Entertainment, Inc. (OTCBB:PLLX) announced today that it has filed a provisional patent application for a Decorative CD Jewel Case Enclosure.

The invention incorporates a sealed reservoir or enclosure that can hold a variety of ornamental mobile and non-mobile substances, such as oil, glitter, colored sand, "glow in the dark" material and water or other colored liquids. The enclosure is designed to aesthetically enhance the CD case appearance that, until now, has relied primarily on printed inserts.

Parallax believes the unique visual impression created by this CD package will appeal to consumers and collectors and be used by both major and indie record labels to create limited edition or collectible CDs.

"This insert can be custom tailored to the image of an individual artist. If the artist is in the teen pop category perhaps a colorful liquid and glitter design would be used," said Gust Kepler, President and CEO. "If the artist is a hardcore alternative rock act the enclosure might be filled with fake blood!" he added.

This innovative invention will help the recording industry entice consumers to buy CD's rather than pirating music for free by down loading, copying or extraditing songs from the Internet via the ever-growing digital technology, which last year caused a collective drop in music sales.

In the year 2000, unit sales in the global music market totaled 3.5 billion. The Company estimates if only five percent of the market uses these unique new cases the Company could generate initial revenues of up to $35,000,000. Parallax plans to license the product to major labels and manufacturers of recorded music products.

The enclosure itself does not significantly increase product-packaging costs, while it greatly enhances the appearance of the CD cases. The invention allows artists, record labels and various other companies with CD products to offer consumers innovative and visually exciting products at minimal additional costs.

Parallax will use the invention for their own artists and plans to license the product to other record labels, software and CD-ROM manufacturers, to generate another revenue stream for the Company.

About the Company

Parallax Entertainment, Inc. is a music industry concern operating two separate but complimentary divisions: Parallax Records and HitDial.com. As the primary focus of Parallax Entertainment, Inc., Parallax Records is a traditionally styled, independent record label that produces, licenses, acquires, promotes and distributes high quality recorded music for a variety of formats.

The record label division currently specializes in developing new artists by marketing and licensing their master recordings to major record labels. HitDial.com, an online promotional vehicle and e-commerce solution for musicians on the World Wide Web, provides the company with an ancillary source of income.

The company's two divisions work in a symbiotic fashion to easily accommodate the rapidly changing methods of promoting and delivering music to the consumer market.

Special Note: Forward-looking statements in this press release are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.

Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, mark acceptance of, and demand for, the Company's products, manufacturing, development and distributor issues, product pricing, competition, technological changes and other risks not identified herein.

The Company disclaims any intent or obligation to update any forward-looking statements.

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