FOR IMMEDIATE RELEASE

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

IMAGINON SIGNS LETTER OF INTENT
FOR $12-MILLION
MULTI-STAGE EQUITY FINANCING

SAN CARLOS, CALIFORNIA, September 29, 2000 -- ImaginOn, Inc. (NASDAQ: IMON) (www.imaginon.com) today announced that it has signed a non-binding Letter of Intent with Resonance Ltd. for a multi-stage $12-million round of equity funding. As proposed, ImaginOn will offer up to $3 million of Series G 8% Convertible Preferred Stock and, within 120 days of the closing of that offering, enter into an "equity line" arrangement under which it may offer and sell from time to time up to $9 million of its common stock at prevailing market prices.

The proposed offer of Series G Preferred Stock and the securities will not be registered under the Securities Act of 1933 and may not be offered and sold in the United States absent registration or an applicable exemption from the registration requirements under such Act. This press release does not constitute an offer of any securities for sale.

ImaginOn, Inc. is an information technology company focused on developing and marketing video servers and software to deliver interactive TV on the Internet and intranets. ImOn.comTV™, ImaginOn's lead product, is a turnkey package that enables any Web site to present an interactive television console within a standard browser window on any computer that has a high bandwidth network connection. The company's objective is to sell interactive Internet TV video servers and software to Web developers and businesses to communicate, entertain, inform, educate or promote e-commerce on the Internet and intranets.

ImOn.comTV is a trademark of ImaginOn
and is 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, 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 the ability of ImaginOn to reach definitive agreements with respect to and close the proposed offering discussed in this release, 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.