Spectrum HoloByte Receives $4 million in Funding 

Company Will Leverage Simulation Technology in Interactive Entertainment
Market

ALAMEDA, Calif., Sept. 24, 1992--Spectrum HoloByte Inc., formerly known as
Sphere Inc., today announced it has closed a $4 million round of equity
funding. The funds will be used to support marketing, sales and product
development in the interactive entertainment market, as well as to
purchase shares formerly held by SWICO, Sphere's parent company. SWICO, a
charitable trust, has severed all ties with the Robert Maxwell family and
has cooperated in the completion of this transaction. The investment
group, led by Kleiner Perkins Caufield and Byers, includes Integral
Partners, AT&T, Stanford University, James Clark and William Berkman--all
of whom have a special interest in developing the interactive
entertainment market.

"Spectrum HoloByte has the technology and the vision to become a leader in
the interactive entertainment industry," said Vinod Khosla, general
partner of Kleiner Perkins Caufield and Byers. "We see tremendous
opportunity for this industry and feel Spectrum HoloByte is in a position
to be the leading application developer in this emerging market."

Spectrum HoloByte, a developer and manufacturer of interactive computer
simulation and video games software, is best known for its products
Falcon, the popular F-16 flight simulation, and Tetris, the famous game of
falling blocks. The company has a long-term agreement with Edison Brothers
of St. Louis to develop software for virtual-reality technology for
consumer use. Virtual reality is a computer-generated environment that
simulates the real world in a way that users can immerse themselves in
this artificial environment and interact with it as if it were real. Most
recently, 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 "Star Trek: The Next
Generation" television series.

"This financing positions the company to work with our new partners in
bringing products and technologies to the industry," said Gilman Louie,
president and chief executive officer of Spectrum HoloByte. "We see
interactive entertainment encompassing many technologies and applications,
including the consumer electronics, communications, entertainment and
computer industries. Spectrum HoloByte is known for its realistic
simulation technology -- one of the most critical technologies in
interactive entertainment. Our goal is to lead the development of the
interactive entertainment market by leveraging our technology and
expertise with key industry alliances."

Spectrum HoloByte, based in Alameda, Calif., is a privately held company
that develops and publishes-interactive-simulatioIrand-actiort-strategy
software for the consumer market. Sales revenues for the 1991 calendar
year were $9.2 million.

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

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