Interplay and GRIN accounce OEM Distribution Agreement

INTERPLAY OEM, INC. AND GRIN ANNOUNCE
EXCLUSIVE OEM DISTRIBUTION AGREEMENT

Interplay OEM to Distribute Titles for
Worldwide Bundling & Premium

IRVINE, California, January 21, 2002 –
Interplay OEM, Inc., a wholly owned subsidiary of Interplay Entertainment Corp.
(NASDAQ: IPLY) announced today a worldwide Original Equipment Manufacturer (OEM)
and Premium distribution agreement with Sweden based GRIN Inc. The agreement
gives Interplay OEM, Inc. worldwide OEM and premium distribution rights on
published titles from GRIN. Included is the breathtaking GeForce3(tm)-enhanced
racing game, Ballistics(tm).

"One of our goals as a company is to work
with the industry’s best developers who focus on technology-driven titles that
push the gamers’ limits," said Jill Goldworn, President of Interplay OEM, Inc. "GRIN’s
success is based on their ability to produce original, innovative and high
quality products and we are very pleased to represent them to the global
hardware community and the promotions industry, worldwide."

"Having created Ballistics – the fastest game
on earth, GRIN is happy to see it is going to be accessed by so many high-end
gamers purchasing new hardware in the year to come. We trust Interplay OEM as
our partner to utilize their specific knowledge of the OEM market and with
Ballistics deliver added value to their clients’ products," said Bo Andersson,
Chief Executive Officer, GRIN Inc.

About GRIN
GRIN Inc, Stockholm Sweden, is a game developer bringing forth games on the PC
and Xbox. GRIN has been working closely with NVIDIA Inc. to utilize their latest
GeForce series of cards in all of GRIN’s present and upcoming games.
Specializing in pixel and vertex-shader technology, GRIN raises the value of
high-end hardware with high-end games.

Safe Harbor Statement under the Private
Securities Litigation Reform Act of 1995:
Statements contained in this release except for historical information are
forward-looking statements that are based on current expectations and involve
risks and uncertainties. Without limiting the generality of the foregoing, words
such as "may," "will," "expect," "believe," "anticipate," "intend," "could,"
"estimate," or "continue" or the negative or other variations thereof or
comparable terminology are intended to identify forward-looking statements. The
risks and uncertainties inherent in such statements may cause actual future
events or results to differ materially and adversely from those described in the
forward-looking statements. For example, Interplay’s ability to continue as a
going concern is dependent on securing external sources of funding to continue
operations. In addition, there can be no assurance that the Company will be
successful in completing any strategic alliances, licensing transactions, and
financings, or that the Company’s current scheduled titles will ship in the
projected time frame or that they will be as popular as the Company presently
anticipates, that the Company will be able to achieve its projected continued
revenues from its existing titles, or that the Company will be able to increase
the number of console titles it releases. Additional important factors that may
cause a difference between projected and actual results for Interplay include,
but are not limited to, future capital requirements, that equity or bank
financing will be available on terms satisfactory to the company or at all,
risks of loss of the Company’s listing on the Nasdaq National Market, risk of
delays in development and introduction of new products, dependence on new
product introduction which achieve significant market acceptance and the
uncertainties of consumer preferences, risks of product returns and markdown
allowances, dependence on third party software developers for a significant
portion of new products, risks of rapid technological change and platform
change, intense competition, seasonality, risks of product defects and resulting
returns, dependence upon licenses from third parties, risks associated with,
dependence upon third party distribution, dependence upon key personnel and
risks associated with international business, intellectual property disputes and
other factors discussed in the Company’s filings from time to time with the
Securities and Exchange Commission, including but not limited to the Company’s
annual reports on Form 10-K and the Company’s subsequent quarterly filings on
Form 10-Q. Interplay disclaims any obligation to revise or update any
forward-looking statements that may be made from time to time by it or on its
behalf.

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