FOR IMMEDIATE RELEASE

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

INTEL DEVELOPER FORUM, SAN JOSE, CALIF., August 21, 2000 - ImaginOn, Inc. (NASDAQ: IMON) (www.imaginon.com) today announced the implementation of a distributed streaming media upgrade to its ImOn.comTV™, turnkey Internet television solution. The company is today showcasing its newly enhanced technology at the Intel Developer Forum and also on the Internet at www.channel31tv.com. With distributed streaming, content is copied to multiple server locations on the Internet, so the viewer receives content from the nearest server, making the stream more stable and the video smoother.

"Today's announcement is a direct result of intense effort and significant advances on the part of our engineering team and also close working relationships with our external distributed media service alliances," explained ImaginOn Vice President of Business Development Sue Ann von Kaeppler. "The end result is a marked improvement in the integrity and reliability of the stream. We expect viewers of www.channel31tv.com to benefit immediately."

ImaginOn, Inc. is also serving as a Silver Sponsor of this year's Intel Developer Forum, the industry's premiere technical conference that attracts hundreds of developers, designers, media and analysts from around the world. The three-day event opens today at the San Jose Convention Center, where ImaginOn is demonstrating the corporate training, educational and e-commerce applications of its ImOn.comTV turnkey interactive "television station in a box."

ImOn.comTV takes existing content such as training video and transforms it into advanced interactive content that significantly and cost efficiently increases the effectiveness of online training programs. ImOn.comTV features viewer directed video that allows trainees to progress at their own pace, instantaneous web links to related training pages and an automated research engine for real-time information on any subject. Unlike Windows MediaPlayer, RealVideo, Apple QuickTime and other simple video streaming products, ImOn.comTV achieves a new level of interactivity that makes TV on the Web, or on an intranet server, truly compelling.

What's more, ImOn.comTV servers come with everything needed to become an interactive video "net-caster." This includes Java® server-client software packaged on an Intel server, a minimum of 20 independent high bandwidth streams of interactive video, ImaginAuthor™ software for turning traditional video into interactive video, as well as training and one year of maintenance and technical support.

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, or by the Securities and Exchange Commission in its rules, regulations, and releases. 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-1 registration statement declared effective by the Securities and Exchange Commission on May 11, 2000. These forward-looking statements speak only as of the date hereof. The Company disclaims any intent or obligation to update these forward-looking statements.