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Unique Internet Marketing Model Uses Brilliants Proprietary Technology and Content

LOS ANGELES, CA - January 5th, 1998 - Brilliant Digital Entertainment, Inc. (AMEX:BDE; http://www.multipathmovies.com), a leading interactive entertainment content and tools developer, today announced the launch of its Multipath Movie product line on the Internet and in major retail chains as well as the commencement of a broad-scale, web-based promotional campaign.

Effective today, Brilliant's Multipath Movie previews and Webisodes are available for trial and purchase at Brilliant's web site: http://www.multipathmovies.com. The new site enables users to view free full screen previews and interactive Webisodes. Features include controls for fast forward, rewind, special effects and the use of 3D rendering capabilities to be selected by the viewer.

Brilliant Digital's 3-D, digitally animated interactive entertainment products are based on licensed properties such as Ace Ventura, Popeye, Xena, and the Choose Your Own Nightmare series as well as internally developed titles, Cyberswine and Gravity Angels.

Kevin Bermeister, President of Brilliant Digital, commented, "Today's launch of our retail and Internet-based content and the enabling of our web site represent technology and content breakthroughs which are the culmination of over three years of investment, development and innovation. Full screen experiences running at variable frame rates, with minimum download time, is something that the Internet has not been able to offer before. With its innovative Digital Projector technology and content, Brilliant is now uniquely positioned to benefit from the growth of the Internet by bringing a workable distribution model to state of the art 3-D animated content.

The flexibility of our approach broadens the use of our technology and enables at least three different output formats and purchasing models, reviewed below, to be exploited from a single production process.


CD-ROM - available in retail stores across the country and via Brilliant's web site. Each CD-ROM features a complete Multipath Movie episode as well as previews for other episodes that can be unlocked and viewed via an Internet transaction. Suggested retail CD-ROM prices range from £9.99.

Internet-delivered episodes - Once users have a Brilliant CD-ROM, they can purchase full-length episodes of other titles online, via Brilliant's web site, for $4.95 per episode. CD-ROMs distributed through bundling programs with Packard Bell NEC, CompuServe, Matrox, magazine covers, etc., as well as those purchased at retail, enable users to purchase and view additional episodes via the Internet.

Internet-delivered "Webisodes" - To enable the Internet-only distribution of Brilliant's entertainment products (without the need for a CD-ROM), Brilliant created Webisodes - serialised versions of Multipath Movie episodes - which can be easily downloaded through a standard modem connection. Brilliant has developed an enhanced, downloadable version of its "Digital Projector" in order to support Webisode access and viewing without a CD-ROM.

Brilliant's Webisodes are available through subscription to Webisode "channels" that are priced at $8.95 for 12 Webisodes, delivered one per week. Each Webisode experience runs 5-15 minutes in length and is delivered via weekly downloads. With each subsequent Webisode, the interactive plot picks up exactly where the user left off in the prior Webisode. The initial Webisode channels, available at www.multipathmovies.com, are:

The Gravity Angels Channel
The Choose Your Own Nightmare Channel

CD-ROM Episodes:
16 Multipath Movie episodes listed below are completed and now available for sale. In addition, the Multipath Movie Adventures of Superman is slated for release in early 1999.

Ace Ventura Xena - Warrior Princess
The Case of the Serial Shaver Girls Just Wanna Have Fun

Choose Your Own Nightmare Series: Popeye series:
The Evil Pen Pal Popeye and the Sunken Treasure
The Curse of the Mummy Popeye and the Quest for the Woolly
Night of the Werewolf Mammoth
Halloween Party Popeye and the Rescue
How I Became a Freak
The Bite of the Vampire

Gravity Angels series: Cyberswine:
Gravity Angels 1: Alien Discovery Cyberswine

Gravity Angels 2: The Betrayal
Gravity Angels 3: Payback
Gravity Angels 4: Death Force

Retail Distribution:
One Stop is completing UK distribution of jewel case versions of Brilliant's Xena: Warrior Princess and Ace Ventura Multipath Movies. Through Brilliant's distribution agreement with One Stop and other direct-to-retail supply arrangements for its box product, Brilliant's CD-ROM products are expected to be featured in a variety of leading retail chains including Dixons and PC World.

Promotional Activities:
Supporting both the Internet and retail products is a significant, Internet-based promotional campaign. Disney is the first of the Company's high profile partners, with Brilliant banner ads, portal sponsorships and key words in Disney's Dig search engine. These activities should help lead children and parents to the home of the world's most exciting online interactive 3D movies. A similar but more extensive campaign with Microsoft is up and running (www.zone.msn.com). This will include broad coverage in MSN.com’s high-traffic Internet Gaming Zone site as well as targeted banners appearing at Hotmail.com. Microsoft will also host a mini site featuring Brilliant’s content and technology. A further demo is accessible on the Intel (www.mediadome.com) site.

Previews of Brilliant's products are to be featured on CD-ROMS distributed on the front cover of more than 300,000 magazines including Personal Computer World, PC Advisor and PC Pro. These will be distributed during the first few months of 1999.

About Brilliant Digital Entertainment
Brilliant Digital Entertainment is the production studio responsible for creating Multipath Movies, a new generation of digital entertainment to be distributed over the Internet, on CD-ROM, as television programming and for home video. Multipath Movies utilise proprietary, technologically advanced software tools to produce three-dimensional, digitally animated stories, each with multiple user-influenced plot alternatives or paths that lead to a variety of distinct conclusions. Brilliant Digital Entertainment (www.bde3d.com) has formed strategic alliances with Packard Bell NEC, CompuServe and British Telecom to distribute its Multipath Movies over the Internet's World Wide Web and has acquired the exclusive worldwide interactive rights from Bantam Doubleday Dell Books for Young Readers for the Choose Your Own Adventure series of interactive books. The Company has also signed content license agreements with DC Comics, Morgan Creek Productions, King Features and Universal Studios. The company is headquartered in Los Angeles, CA with offices in Bondi Junction and Double Bay, Australia and Middlesex, England.


Information about Forward Looking Statements:
Statements in this news release that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Actual results may differ materially due to a variety of factors. Brilliant's ability to complete and timely release the Multipath Adventures of Superman in early 1999 is subject to a number of factors and risks including the Company's ability to complete scripting and production and to successfully complete quality assurance testing of the title. Brilliant's ability to successfully launch its planned Internet-based promotional campaign is subject to a number of factors and risks including the risk that the Company's marketing partners will not adequately perform and the Company's ability to complete and conclude contractual arrangements currently being negotiated. Brilliant's ability to place its products in retail stores in time for the holiday season is subject to the conclusion of distribution arrangements with additional distributors and retailers which are currently under negotiation and not certain of successful completion, as well as the ability of the Company to manufacture, package and ship its products on schedule and avoid delays and manufacturing capacity shortages inherent in the retail software distribution process. The success of Brilliant's retail marketing program will also be dependent upon such factors as the amount and prominence of shelf space provided by those retailers that stock Brilliant's products and no assurance can be given that the products will be given adequate shelf space and prominence to attract consumer attention and interest. If Brilliant is unable to timely distribute its new products for the holiday season, if the planned Internet marketing campaign is not timely and successfully implemented or if the products are not commercially successful in the retail and Internet channels, Brilliant's results will be materially adversely affected. Information about certain of these factors is contained in the Company's most recently filed Form 10-KSB report and 10-QSB report and are available from Brilliant Digital Entertainment's Investor Relations department and may be obtained by calling or writing to our investor relations company, Jaffoni & Collins at 212-835-8500 or email:bde@jcir.com

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