SPECTRUM HOLOBYTE RECEIVES $10 MILLION IN SECOND ROUND OF FUNDING

Company to use Cash Infusion to Strengthen Leading Role in Interactive
Entertainment Market

ALAMEDA, Calif., March 8,1993--Spectrum HoloByte Inc., a leading developer
and publisher of interactive computer entertainment, today announced that
it has successfully secured $10.3 million in a second round of equity
funding. The company will use the funds as working capital to support its
rapid growth. Vertex Management of Redwood City, Calif., leads the latest
investment group which includes Paramount Communications Inc., Chancellor
Capital Management, AT&T Ventures, Kleiner Perkins Caulfield & Byers,
Accel Partners, Integral Capital Partners, Edison Bros. Stores, Technology
Partners and William Berkman of Berkman Associates.

"We are on the cusp of an interactive entertainment revolution, one that
demands major investments in technology and marketing," said Spectrum
HoloByte president Barry James Folsom. "This additional funding represents
a significant affirmation of investors' confidence in Spectrum HoloByte,
its products and strategy."

According to Folsom, the funding will be used to make key investments in
new interactive products and technologies, including virtual reality,
multiplayer/multisystem games and the next generation of flight
simulations. It will also allow the company to invest in emerging
multimedia platforms and technologies such as CD-ROM and 3DO.

In 1991 the company entered into an agreement with Paramount Pictures which
provides Spectrum HoloByte the exclusive license to produce computer and
video games using the name and characters from the hit television series
"Star Trek: The Next Generation." The Super Nintendo and IBM/compatibles
versions are scheduled for a fourth-quarter 1993 release. Spectrum
HoloByte is also working with Edison Brothers of St. Louis to develop
software for location-based virtual-reality technology.

As developer and manufacturer of interactive computer simulation and
video-games software since 1986, Spectrum HoloByte is best known for its
products Falcon, the ultra-realistic F-16 flight simulation, and Tetris,
the famous game of falling blocks. State-of-the-art graphics and sound
complement an unmatched depth of play in the dozens of products Spectrum
HoloByte has published.

Spectrum HoloByte, 2490 Manner Square Loop, Alameda, CA 94501
(510) 522-3584;   Fax (510) 522-3587

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