FOR IMMEDIATE RELEASE

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

SAN CARLOS, CALIFORNIA, September 21, 2000 -- After more than two years of intensive development and testing, ImaginOn, Inc. (NASDAQ: IMON) (www.imaginon.com) today announced that it will begin taking orders for its new ImaginAuthor version for the PlayStation®2 computer entertainment system authoring tool at Sony Computer Entertainment Inc.'s "Tools & Middleware Expo 2000 Fall" conference in Japan. Running from September 27-28 at Sony Computer Entertainment's headquarters facility, the event is expected to attract more than 300 Japanese companies that are developing titles for the PlayStation 2 computer entertainment system.

"ImaginAuthor is the only development tool for building content that allows streaming video to branch seamlessly from clip to clip -- on or off the Internet -- and now it is available for PlayStation 2 title developers," today said ImaginOn Chief Executive Officer David Schwartz. "ImaginAuthor's been developed, tested, refined, and now it's ready to create the next generation of computer-based entertainment. We believe this new version of ImaginAuthor for the PlayStation 2 computer entertainment system will enable developers to bring this new category of interactive video entertainment to the market quickly and cost-effectively."

In announcing the date for the release of ImaginAuthor for the PlayStation 2 computer entertainment system, Schwartz credited the active involvement of game programmers in the tool's development. "This will be our third and most important Sony Computer Entertainment Tools & Middleware Expo, and we could never have made it here without the input from many of the game developers who have seen pre-release versions of ImaginAuthor at previous events. As a result, ImaginAuthor for the PlayStation 2 computer entertainment system now has the drag and drop graphical authoring, application program interface and object library requested by the developers."

ImaginOn's interactive video technology allows the viewer to play a seamless movie that is composed on-the-fly from a database of MPEG2 video clips. At decision points, the user can make decisions that affect the flow of the movie, determining which MPEG2 clip will play next, without stopping the movie. The PC-based tool allows developers to specify which clips and decision points will be included in a movie or game entertainment title. The ImaginAuthor Engine supports the following features: interactive playback of multiple MPEG2 clips from CD/DVD, decoding of MPEG2 video/audio files, seamless real-time integration of clips into an interactive movie, application-level control of flow (play, pause, jump, select branch), transfer of video data to the PlayStation 2 Graphics Synthesizer® (either directly to frame buffer or as texture data), transfer of audio data to the PlayStation 2 sound processing unit (SPU2), and Internet address links.

ImaginOn, Inc. is an information technology company focused on developing and marketing broadband Internet television products. ImOn.comTV™, ImaginOn's lead product, is a turnkey package that enables any Web site to present an interactive Internet television console within a standard browser window on any computer that has a high bandwidth Internet connection. The company's objective is to sell interactive Internet TV video servers and software to anyone and everyone who wants to communicate, entertain, inform, educate or promote e-commerce in a new way for a new era of global communications.

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.