FOR IMMEDIATE RELEASE

Contact: Bob Griffin, Griffin Public Relations & Marketing
(212) 481-3456
Bgriffin@griffinpr.com

"This placement is an important milestone in ImaginOn's continuing development," said Jim Newcomb, ImaginOn's Chief Financial Officer. "With this round, and the support of our investment bankers, we are starting to see more backing of the company by institutional investors."

According to ImaginOn Chief Executive Officer David Schwartz, the proceeds from the placement offering will be used primarily to fund the marketing of ImaginOn's ImOn.comTV product, which will make its broadcast market debut in April at the National Association of Broadcasters Convention in Las Vegas, Nevada.

Under the terms of the offering, ImaginOn sold 1,873,360 shares of common stock for $2.67 per share, resulting in net proceeds to the Company of $4,700,000. The Company also issued to investors warrants to acquire up to 749,344 shares of common stock at an exercise price of $3.34 per share. The warrants expire on 30 March 2002. The number of shares issued in the offering and the exercise price of the warrants will be adjusted for future issuances of ImaginOn securities at prices less than the sale price of the common stock or exercise of the warrants. ImaginOn has agreed to register the shares of common stock, including the shares received upon exercise of the warrants, on or before 30 March 2000.

ImOn.comTV enables any website to provide suitably connected Web users Internet television featuring viewer-directed branching video fully integrated with Web research. The ImOn.comTV product can put any traditional broadcaster, corporation, content owner or business into the Internet television business, literally overnight. The product is sold in a variety of configurations, based on the number of Internet file servers required and is customized for each licensee. ImaginOn also offers a host of pre-and post-launch services to ImOn.comTV station owners. The ImOn.comTV product is an instant TV station in a box -- software on a server -- that is setting the standard for Internet television, blurring the distinctions between "broadcast" and "webcast."

Established in 1876, Ladenburg Thalmann is a New York Stock Exchange member firm, headquartered in New York, with regional offices in Boca Raton and Cleveland. With industry expertise in Internet technology, telecommunications, health care and gaming/leisure, Ladenburg Thalmann offers a broad range of corporate finance services, particularly for middle market companies. The firm also serves as an active market maker for many NASDAQ securities.

ImOn.comTV is a trademark of ImaginOn.com and is also protected under U.S. Patents.

Except for the historical information presented herein, the matters set forth in this press release are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially. These risks include acceptance of ImaginOn software by developers and users, the successful development of competitive software to ImaginOn's, competitive pricing pressures for ImaginOn software and services, and the availability of financing to complete management's plans and objectives. In addition, other risks are detailed in the Company's periodic reports and in its Form S-3/A-2 registration statement declared effective by the Securities and Exchange Commission on April 26, 1999. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.