ImaginOn Presents ImaginAuthor Technology At Sony Playstation2 Developers Conference in Japan Business Editors/High Tech Writers SAN CARLOS, Calif. Sept. 24, 1999-- Developers response to ImaginOn's patented interactive digital film authoring technology is excellent, reports company Chief Executive Officer David Schwartz Company expects to appoint first Japanese distributor within 90 days ImaginOn, Inc. (NASDAQ: IMON) today announced that, earlier this week, it presented its patented ImaginAuthor(TM) interactive digital film technology at a Sony Playstation(R)2 developers conference in Japan. The three day event, which was hosted by Sony Computer Entertainment, Inc., brought together many of the companies licensed by Sony Computer Entertainment, Inc. to provide middleware to developers creating content for the Internet-enabled Sony PlayStation(R)2 computer entertainment system scheduled for launch in 2000. According to ImaginOn Chief Executive Officer David Schwartz, ImaginOn, the only company whose authoring system supports seamless n-way branching of digital film with integrated Internet access, showcased two products created with ImaginAuthor: the WorldCities 2000 Series interactive travel planners and American Hero, a full-length truly interactive feature film. "We received an excellent response from developers and publishers," Schwartz said today, "several of whom expressed a strong interest in working together on future titles." What's more, according to Schwartz, ImaginOn held discussions with several distributors who cover Japan and the Pacific Rim region. "We expect to announce the appointment of our first ImaginAuthor distributor, covering Japan, within the next 90 days, which will provide us with localization and support in a vitally important developers market." ImaginOn's announcement today follows the one made last week, on September 13, 1999, by Sony Computer Entertainment, Inc. in Tokyo, Japan. In that announcement, SCEI said it recognized the potential of broadband networks to offer consumers a vast selection of content and the convenience of download capability. Accordingly, SCEI said it would establish broadband based distribution of digital content, beginning with the PlayStation and PlayStation 2 software libraries. With an Ethernet connection to a broadband network such as digital cable, PlayStation2 users will be able to download data-intensive computer entertainment content to hard disc drives to be provided by Sony Computer Entertainment, Inc. In discussing the software developers reaction to ImaginAuthor, Schwartz emphasized that, "Developers weren't aware that this kind of seamless n-way branching technology, with built-in Internet access, even existed, let alone was available for their use in entertainment products. ImaginAuthor changes the rules for interactive software development for a high bandwidth environment," he asserted. "Developers no longer need to rely on one ending for a title. Players should be able to choose from a lot of varied outcomes, depending on the decisions they make in real time interaction. We believe ImaginAuthor is the only technology of its kind that allows for an endless -- hence the phrase 'n-branching' -- number of outcomes." Equally important to developers, Schwartz continued, is the fact that ImaginAuthor supports MPEG1, MPEG2, and Apple QuickTime* and allows for video to be sourced from local disks and/or remote hosts. "For publishers and developers, this means they can develop a whole new genre of fast-paced interactive digital film content." ImaginOn, Inc., operating through its wholly-owned subsidiary, ImaginOn.com(www.imaginon.com), engineers, produces and sells business and consumer software for CD-ROM and Internet users, including: WebZinger, its product line of Web Research Engines; sellONstream, its e-commerce software solution; and WorldCities 2000 Web/CD travel planners. ImaginOn, Inc.'s wholly-owned subsidiary, INOW, Inc., (www.inow.com) provides Internet services including high-speed connectivity, website hosting, website design and e-commerce support. ImaginOn, Inc.'s wholly-owned subsidiary ImaginOn Digital Productions (www.imaginondp.com) designs web sites and advertiser-supported CD-ROMs. WorldCities 2000, sellONstream, WebZinger, and ImaginAuthor are trademarks of ImaginOn.com and are also protected under U.S. Patents. All other tradmarks and registered trademarks are the property of their respective owners. Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include acceptance of ImaginAuthor by software developers, the successful development of competitive software to ImaginAuthor, and competitive pricing pressures for ImaginAuthor. In addition, other risks are detailed in the Company's periodic reports and in its Form S-3/A-2 registration statement declared effective by the Securities and Exchange Commission on April 26, 1999. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.