FOR IMMEDIATE RELEASE

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

SAN CARLOS, CALIFORNIA, October 20, 2000 — ImaginOn, Inc. (NASDAQ:IMON) (www.imaginon.com) today announced that it has completed a $1.5 million private placement that represents the first stage of a planned $12-million round of equity funding through Resonance Ltd. and associated investors, which was previously announced on September 29, 2000.

According to ImaginOn Chief Financial Officer Jim Newcomb, ImaginOn has closed on $1.5-million of its Series G convertible preferred stock with Bess Holdings Ltd. and Resonance Ltd. Net proceeds to the Company were $1.35 million. The initial conversion price is $.60 per common share.

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™, the company'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.

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.