Xiphias Signs Video Fitness Star Kathy Smith for CD-ROM

Xiphias scores a coup, announcing that it has signed video fitness star
Kathy Smith for a CD-ROM. The product, to be introduced by Kathy Smith and
Xiphias at the Chicago Consumer Electronics Show, retails for $69.95 and
will ship in August for both the PC and the Mac on one disc.

The release will mark the first time a major home video property has been
exploited on CD-ROM. Kathy Smith videos have sold over five million units
in the United States; Smith's videos also have distribution in eight
countries internationally. Kathy helps shape America's attitudes towards
fitness and healthy lifestyles as a corespondent on NBC's Weekend Today
Show. In addition, she reaches approximately 12 million people monthly
with tips on health and exercise on Whittle Communications' Special
Reports Television, a programming service to 45,000 medical offices
nationwide.

The Xiphias product is based on Kathy Smith's Fat Burning System, a
directly marketed product with sales of over a quarter million units to
date. Xiphias will reformulate elements of the original product, which
includes books, audio tapes, and the Kathy Smith Total Body Workout video
tape.

Xiphias expects distribution in video channels, as well as more traditional
software channels. Xiphias will introduce the property as one of four new
products, each of which will feature Xiphias' new Matrix Interface. The
interface, designed to reduce complexity in high video content CD-ROMs,
was introduced at the TED4 conference in Kobe, Japan, in early May.

Xiphias President Peter Black indicates that the Kathy Smith announcement
should put the home video business on notice. "We believe our future lies
on the shelves of places like Tower and Blockbuster. Publishing Kathy
Smith on CD-ROM should send the message that we are serious about digital
exploitation of video. The new, simpler interface design we'll be using -
we call it the Matrix - should send the message that we are serious about
selling to the consumer, not the computer marketplace."

Smith comments, "I am extremely pleased to have the opportunity to expand
the distribution of my Fat Burning System in the interactive category. I
look forward to working with Xiphias and aggressively creating products
that keep us on the cutting edge of new technology."

The Matrix interface is an extraordinarily simple design for the electronic
packaging of linear material, ranging from special interest titles like
Kathy Smith, to movies and television shows. In Black's words, the Matrix
is designed to let a consumer 'get to the good parts quick, or just sit
back and hit the play button'.

Xiphias is a Los Angeles-based publisher of interactive CD-ROM products.
Xiphias' present product line includes The Time Table of History series,
The American Heritage Illustrated Encyclopedic Dictionary and the New
Basics Electronic Cookbook. Xiphias will introduce four new, Matrix-based
titles at the Consumer Electronic Show in June.

Xiphias is located at 8758 Venice Boulevard, LA, CA 90034. Phone (310) 841
2790. Fax (310) 841 2559.

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