ATOMFILMS LAUNCHES FIRST MOBILE ENTERTAINMENT INITIATIVE

Award-winning Atom Animations and Films Now Showing in the Theater, on the Couch, at Work and on the Go

SEATTLE - April 19, 2000 Changing the lifestyles of entertainment fans, AtomFilms is the first next-generation entertainment company to launch a mobile initiative that will transform the way consumers enjoy and share entertainment. Driving the revolution to stream entertainment everywhere, Atom is working with leading wireless and handheld companies to entertain consumers on any platform. Consumers will be able to take an entertainment break anywhere by simply logging on to AtomToGo online channel from their PDA or Internet-enabled device.

As the first entertainment company to deliver film and animation to existing WindowsCE® and new Pocket PC devices, AtomFilms is one of the select Windows-powered Pocket PC launch partners. Through the ActiveSkyTM Media Player, consumers will be able to download popular Atom animations and films for the first time on virtually any large-screen mobile device, including the new Windows-powered Pocket PC launched today. ActiveSky's technology brings consumers closer to on-demand, wireless entertainment, making it possible for small devices to display high-quality Atom animations and live-action videos.

Atom shorts fans will now be able to log onto the Atom community everywhere - even from their mobile phones. AtomToGo supports the Wireless Application Protocol, giving WAP-enabled phone users a direct dial to the site to check on the Atom Daily Pick and read summaries about the Top Viewed and Rated Films on the site.

The AtomToGo online channel optimizes content so that users may download short films and animations that sync directly to their PDA giving busy entertainment fans a rolling variety of world-class, original Atom productions. With easy-to-understand, step-by-step information on how to download Atom films for a variety of Internet-enabled handheld devices, it also includes links to third-party resources for wireless devices, handhelds and media players.

"Atom is revolutionizing the way people enjoy entertainment. Through ActiveSky's proprietary technology, Atom is able to create dedicated content for any mobile platform," said Matt Hulett, chief marketing and online officer for AtomFilms. "Whether it's in the theater, on the couch, in the office or on the go - Atom entertainment will be everywhere."

"ActiveSky 'brings life to the small screen,' without costly hardware or complex interfaces," said ActiveSky CEO Scott Marquardt. "AtomFilms' extraordinary collection of award-winning, short-format entertainment shows off the unique capabilities of ActiveSky's technology and gives consumers something to 'show and share,' using their handheld devices."

Atom short films and animations are now premiering on PDAs, handheld PCs and next-generation cell phones. Atom entertainment is also available worldwide on the Internet, in theaters, on DVD and VHS, cable and satellite television, through broadband providers, on airlines, in malls, at big events and concerts, as well as college campuses.

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.

About ActiveSky
ActiveSky Inc. is a technology company that was formed in 1999 to bring its unique small-device media streaming technology for PDAs and the wireless Internet. The company is headquartered in Redwood City, California. More information about ActiveSky can be found on the Internet at http://activesky.com.