CAPITAL CITIES/ABC AND SPECTRUM HOLOBYTE ANNOUNCE A JOINT VENTURE TO
PRODUCE ABC SPORTS GAME SOFTWARE

ALAMEDA, Calif., May 31 -- Capital Cities/ABC, Inc. (NYSE: CCB) and
Spectrum HoloByte, Inc. (Nasdaq: SBYT), a worldwide interactive
entertainment company, today announced the establishment of a joint
venture company to develop and produce interactive game software for
personal computers and video game machines, using the ABC Sports brand.
The announcement was made by Stephen A. Weiswasser, President, Capital
Cities/ABC Multimedia Group, Dennis Swanson, President ABC Sports and
Gilman Louie, Chairman and Chief Executive Officer, Spectrum HoloByte,
Inc. Each company will hold a 50 percent interest in the joint venture.
Financial terms were not disclosed.

The joint venture company, still to be named, will be based in Hunt Valley,
Maryland, close to the headquarters of Spectrum HoloByte's MicroProse
division, which will help oversee the development of the new games. The
games produced will use the "ABC Sports" trademark as well as "Monday
Night Football" and "Wide World of Sports." The company expects to develop
five products in the first two years, ranging from football to auto
racing. The games will be developed on CD-ROM for personal computers, and
for 32-bit next-generation game machines, and could include 64-bit and
other platforms.

"ABC Sports is a leader in television sports broadcasting. This venture
gives us the opportunity to translate that leadership into a new medium
that can reach a different audience in new ways," said Stephen A.
Weiswasser, President, Capital Cities/ABC Multimedia Group. "Spectrum
HoloByte is a market leader in the development of PC games, and, as such,
is an ideal partner for creating this new sports franchise."

"Our venture into CD-ROM and interactive games further expands our global
multimedia reach," said Dennis Swanson, President, ABC Sports. "We're
looking forward to combining our television production and programming
expertise with the expertise of our new partner and by doing so, to enter
the fast-growing, exciting, home based game market."

Gilman Louie, President and CEO of Spectrum HoloByte, said, "Spectrum
HoloByte is known for creating popular interactive software. With the
advent of next generation platforms from Sony, Sega, Nintendo and
Panasonic, as well as the emergence of multimedia PC's in the home, this
venture with ABC will allow us to combine their programming with our
interactive experience. We look forward to creating a dynamic next
generation sports brand."

Two interactive sports games for which Spectrum HoloByte is well known are
"Ultimate Football," the only interactive sports game with an on-line
component, and "World Circuit Racing."

Capital Cities/ABC, Inc. operates the ABC Television Network, eight
television stations, the ABC radio networks and 21 radio stations, and
provides programming for cable television. The Company, through joint
ventures, is engaged in international broadcast/cable services and
television production and distribution. Also, the Company publishes daily
and weekly newspapers, shopping guides, various specialized and business
periodicals and books.

The Capital Cities/ABC Multimedia Group develops and manages business
opportunities in new and emerging media technologies. These include the
interactive television, pay-per-view, and video-on-demand areas; video
cassette and disc-based media, on-line computer applications and
location-based entertainment; and HDTV and digital television.

Spectrum HoloByte, Inc. is a developer and publisher of interactive
entertainment software for use on CD-ROM and floppy-based personal
computers. The company is also developing software for the next generation
of console machines manufactured by SONY (TM), Nintendo (R), Sega (TM) and
3DO (TM). The products are available nationally and internationally
through major distributors, retailers and mass merchants.

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