7th LEVEL AND MORGAN CREEK TO DEVELOP "ACE VENTURA" CD-ROMS

Action Adventure and Educational Titles to be Developed

Dallas, TX (September 13, 1995) -- George Grayson, president and CEO of 7th
Level, Inc. (NASDAQ: SEVL) and Hollywood's James G. Robinson, chairman and
CEO of Morgan Creek, have announced a joint venture to develop multiple
interactive products based on an animated version of Ace Ventura, the
character made popular by actor Jim Carrey.

The first title, an action adventure game on CD-ROM for Windows 95 and the
Macintosh, is set for an August 1996 release. Following the release of the
game the venture intends to market an educational title that employs the
animated Ace Ventura character. In addition, the joint venture has rights
for all CD-ROM platforms and is planning to develop for next generation
game consoles. The agreement with Morgan Creek also contemplates
developing additional titles based on Ace Ventura.

Jim Carrey launched his career in the smash hit film, "Ace Ventura: Pet
Detective" and is fast becoming an icon of American pop culture. Nineteen
ninety-five marks the beginning of the next wave of Ace- mania. In what is
expected to be one of the largest movie releases in history, Morgan Creek
will bring Ace Ventura back to the big screen on November 10th in "Ace
Ventura: When Nature Calls." The movie will open on 4,000 screens across
North America. Then, the animated version of Ace Ventura will be
introduced on CBS in a Christmas special this year followed by a Saturday
morning TV series in January 1996.

"One of the things that excites us the most at 7th Level is the way Morgan
Creek has captured the essence of Jim Carrey in the animated Ace
character," said Bob Ezrin, co-chairman of 7th Level. "We are also very
enthusiastic about Morgan Creek as a partner. It is an exceptional company
with one of the best track records in Hollywood, the highest of standards
and an incredible work ethic. We look forward to a long and fruitful
association with them."

"We believe the Ace Ventura CD-ROMs will be very popular," said George
Grayson. "These new titles will increase the strength of our existing
product line, as well as demonstrate Hollywood's acceptance of 7th Level's
proprietary computer technology as a viable avenue for entertainment
products."

"The innovation and ingenuity found at 7th Level made the company a perfect
choice to create a witty and entertaining CD-ROM based on the Ace Ventura
character," said James G. Robinson. "7th Level is more than an interactive
company. They understand the importance of characters and the stories that
bring them to life."

"We believe that the management team at 7th Level is one of the best in the
industry, and we are very excited about our new venture with them. They
are a well capitalized company, with great technical and creative
expertise and are perfectly positioned to market our Ace Ventura character
in this new technological world," said Gary Barber, vice chairman and COO
of Morgan Creek.

7th Level has developed a technology and production process which enables
the creation of animated action games that can exceed the visual quality
of television and gameplay of video game consoles. This proprietary
technology has been used to create all of the company's award-winning
interactive CD-ROM titles.

7th Level will distribute the products produced by the joint venture with
Morgan Creek. Revenues and expenses will generally be shared equally by
the venture. 7th Level also will fund the costs of development of the
first two titles, but will be entitled to recover such costs out of sales
proceeds. The agreement outlining the terms of the joint venture grants
Morgan Creek certain warrants to purchase 7th Level common stock. 275,000
warrants, based on box office revenues of the feature film "Ace Ventura:
When Nature Calls," have been granted at various price levels.

7th Level has formed three other joint ventures including a recent
agreement to co-produce a CD-ROM math adventure with E.E.N.
Communications. In June, 7th Level announced it is teaming with Disney
Interactive to release an arcade game series based on "The Lion King"
characters Pumbaa & Timon, due out in November, and last year the company
announced QD7, a Hollywood joint venture with Quincy Jones-David Salzman
Entertainment to produce an interactive music anthology CD-ROM to be
released in 1996.

7th Level, Inc. blends Hollywood creative artistry, proprietary production
techniques and world-class animators and producers to deliver state-
of-the-art multimedia products. Battle Beast, the ultimate fight game, is
7th Level's latest innovative release. 7th Level's other award-winning
titles include Monty Python's Complete Waste of Time, which is scheduled
to be released this fall for the Macintosh, TuneLand starring Howie Mandel
and Take Your Best Shot. Coming this fall are The Great Word Adventure
starring Howie Mandel and Arcade America.

Morgan Creek Interactive, Inc. is a developer, publisher and licensor of
interactive family entertainment software.

The company is the worldwide distributor of its entertainment, edutainment
and educational products. Morgan Creek is the largest privately held
independent production company in Hollywood today. Having produced such
highly successful films as "Robin Hood: Prince of Thieves," "Ace Ventura:
Pet Detective," the "Young Guns" series, the "Major League" series, and
many other notable films, Morgan Creek has one of the most successful
track records in the industry. Morgan Creek's new line-up is highlighted
by "Ace Ventura: When Nature Calls," one of the most highly anticipated
films of the year; the Sandra Bullock, Denis Leary starrer "Two if by
Sea," the Tom Arnold, Rick Moranis starrer "Big Bully" and the Sharon
Stone starrer "Diabolique."

Morgan Creek is a diversified entertainment company which encompasses
Morgan Creek Productions, Inc. one of the most successful and respected
production companies; Morgan Creek International, its foreign distribution
entity which distributes all Morgan Creek product internationally; Morgan
Creek Music Group, a music publishing and soundtrack company which has
three platinum soundtracks to its credit and a strong publishing
catalogue; and an exhibition company which holds a significant interest in
First International Theaters which operates over 80 screens in the
Midwest. All of Morgan Creek films are distributed through Warner Brothers
in the U.S. and Canada.

Visit 7th Level on the internet at http:/www.7thlevel.com or on AOL,
CompuServe and MSN at SEVENTH.

7th Level, Inc.

Corporate Headquarters:
1110 E. Collins Blvd., #122
Richardson, TX 75081
(214) 498-8100,  Fax: (214) 437-2717

Production Studio:
5225 San Fernando Road West
Los Angeles, CA 90039
(818) 547-1955 Fax: (818) 246-5198
 
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