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Merscom Announces Multi-Title Publishing Agreement with CITY Interactive

CHAPEL HILL, NC – August 4, 2004 – Merscom LLC today announced an agreement with
CITY Interactive to publish three of the developer’s PC games in North America:
Space Interceptor: Project Freedom, a space arcade combat game, Terrorist Takedown,
a military arcade shooter, and WWII Fighter Pilot, a flight arcade combat game. All
games are value-priced at $19.99 USD and scheduled for Q4 2004 release.

“We’re pleased to form this multi-title relationship with a developer like CITY
Interactive,” said Lloyd Melnick, Director of Merscom. “All three of these games
represent what we believe both Merscom and CITY do best — bring to market quality
games with across the board appeal that are simply great fun to play.”

Space Interceptor: Project Freedom orbits you into nonstop space combat arcade
action in a heavily armed fighter ship. Deploy missiles, photo torpedoes, plasma
glob launchers and lasers as you attack enemy fighters, escort your fleet, and
rescue fallen comrades. Remarkable special effects, beautiful graphics, and massive
explosions enhance the experience. Scheduled for September 2004 release.

Terrorist Takedown puts you on the front line in the war on terror as a soldier in
the US Army. Operate Apache and Huey helicopters, Hummers, heavy machine guns,
rocket launchers and more as you strike at known terrorists. In 16 heart-pounding
missions you must defeat the terrorists and protect our homeland. Scheduled for
October 2004 release.

WWII Fighter Pilot finds you battling for domination over the Pacific skies during
World War II in this arcade-style flight combat game. With your heart in your
throat, drop into the explosive action of the Pacific Campaign with addictive point
and shoot arcade gameplay and terrific 3D graphics. Scheduled for December 2004
release.

“While CITY Interactive has already successfully established itself in the North
American market with such games as Demolition Champions and Red Baron: Ace of the
Sky, by teaming up with Merscom we believe we’ll have an even greater impact,” said
CITY Interactive CEO Marek Tyminski. “Based on fan feedback we’ve received from
around the world, the market simply demands more of these high-quality, value-priced
games, across all genres, and we definitely anticipate great success.”

About CITY Interactive
Founded in 2002 by the merger of Lemon Interactive and development studios We Open
Eyes and Tatanka, CITY Interactive is an international developer and publisher of
entertainment software with mass appeal. The talented individuals behind CITY have
been responsible for Demolition Champions, Red Baron: Ace of the Sky and many other
titles that have been well-received around the world. The company’s mission is to
produce high quality entertainment software for personal computers as well as video
consoles by combining high-end technology with smart development budgets. For more
information, visit www.city-interactive.com

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