ATOM PRESS

NEW COMPANY FIRST TO DELIVER SHORT ENTERTAINMENT TO MASS MARKETS

Atom Corporation Distributes Short Films, Animations and Digital Media to Internet and Traditional Markets

NEW YORK — March 1, 1999 -- A next-generation entertainment company, Atom Corporation, was announced today at the Jupiter Consumer Online Forum. Atom is the first company to bring top-quality short entertainment to large consumer audiences worldwide, distributing short films and animations across a broad range of traditional and emerging media channels, including television, the Internet, broadband services, home entertainment companies and airlines. Offering instant access to its proprietary catalog of the world's best short films and animations ("shorts"), Atom's innovative new Web site is the Internet's largest destination for unique, quality entertainment under 30 minutes.

Atom's start-up operations have confirmed its belief that short entertainment is ideally suited to today's fast-paced lifestyles, Internet technology constraints and savvy, demanding consumers. Atom has formed alliances with a range of major media companies interested in making Atom's content available to their audiences.

"Short-form entertainment has always been a favorite of audiences; but the economics of entertainment distribution have shut it out of the mainstream and restricted the format to 'niche' outlets," said Jim Banister, Executive Vice President of Warner Bros. Online. "The emergence of new delivery platforms, especially the Internet, is fueling the emergence of short-form entertainment as a viable business; and causing even mainstream outlets, like cable, to revisit the use of short-form entertainment to retain audiences."

Atom's distribution partners and customers include HBO, @Home, Go Network/Infoseek, Sundance Channel, Warner Bros. Online, Continental Airlines, Air Canada, RealNetworks, Reel.com, Mr. Showbiz, Broadcast DVD, Film.com, College Broadcast Network, Air New Zealand and SonicNet. The company is also working with a select group of prestigious film organizations to make their content more widely accessible. These include the American Film Institute, Australian Film Commission and Norwegian Film Institute.

"The time for bringing short films and animation to mainstream audiences is now," said Jeff Schwager, executive producer of Go Entertainment and Mr. Showbiz. "Short entertainment is exciting content that effectively differentiates Go and Mr. Showbiz from the competition. We're happy to be working with Atom."

Strong Filmmaker Relationships, World-Class Content
Atom acquires the best short content available by scouring film festivals, building relationships with filmmakers and animators, and working with top film schools and online content creators. Atom's shorts come from today's most talented, innovative directors and feature some of the industry's hottest stars, including Matthew McConaughey and Neve Campbell. The company's distinguished catalog of exclusively licensed titles includes 1999 Academy Award nominee Holiday Romance, film festival hits from around the world, and cutting-edge digital animation.

Unique Web Experience
Atom's Web site (www.atom.com) is a prominent part of the company's strategy to bring unique "instant" entertainment experiences to large consumer audiences. Atom's fun and comprehensive site offers weekly online film festivals - movie screenings in both low- and high-bandwidth streaming formats - featuring audience participation through ratings and reviews. In addition, Atom's site offers in-depth information about Atom's films and filmmakers, e-commerce capabilities, independent film news and resources for business-to-business customers.

"Atom is redefining entertainment on the Internet by providing quality content that consumers can't get anywhere else," said Atom Founder & CEO Mika Salmi. "Our strong relationships with innovative talent around the world puts us in a unique position to find tomorrow's hits."

About AtomFilms
AtomFilms is a leading next generation entertainment company focused on redefining the way entertainment is created, distributed, marketed and consumed. AtomFilms has the largest catalog of award-winning animation and live-action entertainment available. A loyal supporter of independent filmmakers and animators, AtomFilms has built a platform for artists seeking worldwide distribution. AtomFilms markets and distributes high-quality short form entertainment to more than 80 partners and to audience's worldwide, with significant presence on major Internet sites, broadband services, television, airlines, home entertainment companies and more recently, handheld and wireless devices. A popular Web destination that is ranked among Media Metrix's top twenty entertainment sites, the two time Webby Award winner in Film and Broadband, AtomFilms was recently selected as the "Forbes Magazine Favorite" short film Web site. AtomFilms was also sited as one of the top ten most trafficked movie-related sites by Entertainment Weekly, and was rated "Best of the Web" for online entertainment by U.S. News & World Report. An independent company founded in 1998, AtomFilms has offices in Seattle, Los Angeles, New York and London. More information about AtomFilms can be found on the Internet at www.atom.com.