GRAPHIX ZONE DEVELOPS FIRST VIRTUAL SOFTWARE STORES FOR MAJOR EUROPEAN
PUBLISHER

CD-ROMs let users "shop around" virtual superstores, see demos, take test
drives, automatically pre-check software system requirements against their
computer, and make online software purchases with instant installation.

Virtual shopping: a real experience

IRVINE, Calif., July 20, 1995--Imagine this: One click of your mouse and
you are immediately transported to a well-appointed software superstore
where you are greeted by a smiling, virtual attendant who invites you to
"explore around." You begin roaming the aisles with your electronic
shopping cart, take your time browsing through the products on the display
shelves even casually glance at other shoppers around you. And then it
suddenly dawns on you: Where you're really shopping is...right inside your
own computer!

Graphix Zone, Inc. (NASDAQ:GZON), an expert on multimedia and a leading
producer of CD-ROM music titles, today announced that its Multimedia
Productions Division has developed the first ever virtual software store.

Graphix Zone goes global

The project was produced for Paris, France-based Software Direct, a
subsidiary of Matra-Hachette, a $12 billion media and aerospace
conglomerate. "We opened our first satellite office--in Paris--to help us
establish and maintain a close working relationship with Matra-Hachette,"
said Chuck Cortright, Graphix Zone's president and chief executive
officer.

Solving France s biggest software retailing problem

Software Direct president Duco Sickinghe sought out Graphix Zone to produce
a CD-ROM based on his concept of a virtual store where shoppers could
purchase software products that could then be instantly installed onto
their computers. He also wanted to find a solution to France's unique
software retailing problems.

Creating a new sales channel

"Since there are no USA-style software superstores in France," said
Sickinghe, "finding a wide selection of current software titles is very
difficult for French consumers. Explor Us solves this problem by creating
a new software sales channel within an already existing, traditional sales
channel.

A new distribution method

The French are used to buying software at newsstand kiosks, which also
function as mini 7/11-type convenience stores. "Hachette owns over 2,000
prime-location newstand kiosks throughout France which are 'branded' with
a standardized appearance and merchandise mix. Software Direct has a
highly visible CD-ROM rack for the Explor Us CD-ROMs in every Hachette
kiosk," said Sickinghe.

Two different virtual stores

Two 'virtual store' CD-ROMs will be available, each retailing for 49 French
francs (US$11.00) and each containing 50 to 60 titles. The first 'store'
specializes in games and education software; the second 'store' sells
business and culture-related software. Both CD-ROMs will be updated
regularly to change the product offering mix. "This makes it easy for
everyone to have access to a large number of titles. It's literally a
superstore on disc," said Sickinghe. Explor Us will be distributed in
France initially before a potential roll out to major cities in other
European countries.

Buck Rogers shopping cart

Once users have installed Explor Us, they find themselves inside a large,
well-stocked software superstore, where they are given an electronic
gadget-loaded shopping cart which helps them navigate the store aisles.

Navigating in a virtual world

The electronic shopping cart uses a message screen to provide directions,
complete with a map button that instantly shows the shopper their store
location. To navigate, shoppers simply point-and-click on the store area
they would like to explore and are instantly transported there. Or, they
can click on directional arrows located on the shopping cart to go
forwards and backwards, or left and right. For help at any time, a virtual
sales clerk is just a 'click away' by using a help button located on the
shopping cart.

Once at the desired location, shoppers simply use their mouse to point at
store signs, aisles or software packages for pop-up descriptions.

Try before you buy

To see a demonstration or to order a product, shoppers click on the desired
software package. They then choose either a test drive, a self-playing
demonstration, or an on-screen order form.

Matching software needs to system specifications automatically

Graphix Zone created a new technology for Explor Us that automatically
compares system requirements of a potential software purchase to the
actual hardware and software configuration of the customer's computer.
Arcane system requirements such as extended memory and sound card bit
depth are verified without any user involvement.

Informed buying insures customer satisfaction

A green light next to a specification tells the user that a particular
requirement has been met, while a "red" light means that a hardware or
software upgrade needs to be made before installing the desired software.
This helps users make informed purchase decisions based on the true cost
of a particular software product, which may include any necessary system
upgrades.

Ordering and installing

When the order form is completed, the shopper either uses their modem for
automated order processing, or calls a toll free phone number and gives an
operator credit card information. The operator then gives the buyer a
special code "key" to "unlock" the product, which is already on the
CD-ROM, although in "locked" or encrypted form. Once the special code is
entered, the software is immediately and permanently unlocked on the
CD-ROM as well as installed on the customer's computer.

Graphix Zone's other divisions

Founded in 1989, Graphix Zone develops and markets interactive multimedia
products and services. In addition to being a producer and publisher of
CD-ROM titles, the company is also known for its Multimedia Production
division, which produces custom multimedia projects for leading domestic
and international corporate, government and institutional clients. The
company's New Media Group educates organizations and consumers on how to
use multimedia on behalf of leading manufacturers of multimedia hardware
and software.

Our best selling CD-ROM titles

Earlier this year the company released its second music title, Bob Dylan:
Highway 61 Interactive, which sold over 50,000 copies during its launch
and continues to receive critical acclaim. Released in July 1994, the
company's (Prince) Interactive CDROM won several awards including
Multimedia World's Reader's Choice Award for Best Interactive Music Title,
and with over 75,000 units sold, is currently the world record holder in
interactive music CD-ROM sales. The company's first title, The Guided Tour
of Multimedia, has sold over 30,000 units to date. It is the first
tutorial to use interactive multimedia to teach multimedia and continues
to be bundled with the IDG best seller Multimedia For Dummies.

Graphix Zone
38 Corporate Park, Suite 100
Irvine, CA 92714
714-833-3838,  fax 714-833-3990
 
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