A quarter billion Dragon's Lair fans will soon join Dirk the Daring in a stunning 3D, high-fantasy adventure as he battles a myriad of creatures throughout the Dark castle to rescue Princess Daphne - on their next-generation video game systems.

Encore, Inc. today announced that it has signed a 3 -year, worldwide agreement with Dragon's Lair LLC to publish this entirely new, 3D game based on the enormously successful Dragon's Lair franchise. Slated for release in third quarter 2002 for the PlayStation®2 computer entertainment system and the Nintendo GameCube(tm), Dragon's Lair 3D will dramatically expand upon the gameplay that fans have enjoyed since 1983 by offering a true, 3D experience; new characters; more than 200 new rooms to explore; special visual and sound effects; an original music score; and much more.

"Dragon's Lair is a legendary franchise, and we believe that this new version will appeal to both classic gaming fans worldwide and a brand new generation of gamers," said Michael Bell, chairman and CEO of Encore, Inc. "Dragon's Lair 3D will set the standard for 3D gameplay by offering state-of-the-art animation and character movement, while staying true to the design and storyline of the original arcade game."

"We are delighted to partner with Encore, because they're as passionate about Dragon's Lair 3D as we are," added Rick Dyer, president and CEO of Dragon's Lair LLC, Dragonstone Software and the game's original designer. "It is truly exciting to reinvent this arcade game - which fans have loved for so many years - as a revolutionary, three-dimensional world that people can play in their living rooms."

New 3D Version Honors Game's Legendary History

Since its introduction in 1983 as the world's first full-animation laser disc video game, Dragon's Lair has become one of the most successful coin-op games of all time. The legendary adventure, one of only three games on display at the Smithsonian Institution (the other two are Pac Man and Pong), has been played by over 320 million people worldwide.

Over the ensuing years, 2D versions of the game - on a wide range of platforms including Amiga, Apple, Atari, PC, Sega, Game Boy® Color and DVD - have been released, building a dedicated fan base estimated at a quarter billion worldwide. With the introduction of Dragon's Lair 3D, these fans will be transported to an entirely new three-dimensional world, taking their Dragon's Lair experience to a whole new level.

A World-Famous Cast Creating the 3D Game

A team of world-famous animators, designers, software programmers and composers are already in the Dragonstone Software studios working on Dragon's Lair 3D. Among its members:

• - Original Dragon's Lair co-creator Rick Dyer, a leading developer in the interactive game industry for more than 20 years. His credits include Space Ace, Time Traveler and Shadoan. An inventor and entrepreneur even in his early teens, Dyer invented the world's first holographic video game, developed more than half of the hand-held video games manufactured in the early 1980s (including portable versions of Space Invaders, Pac Man and Defender), and created a line of talking robotic fitness machines.
• - Animation producers Don Bluth and Gary Goldman. They were part of the original team that produced Dragon's Lair in 1983, and have since animated such popular films as Anastasia, The Secret of NIMH, All Dogs Go To Heaven, An American Tail, The Land Before Time, Thumbelina and Titan AE. While working together at Walt Disney Studios during the 1970s, Bluth and Goldman also animated on such well-known Disney animated films as Robin Hood, Winnie the Pooh and Tigger Too, The Rescuers, and Pete's Dragon.
• - Composer Christopher Stone, created the musical scores for over twenty feature films and worked on numerous Emmy winning productions. He is the winner of six ASCAP Awards for television. Stone's film credits include John Landis' The Stupids, Phantasm II, III and IV, The Secret of My Success, Password is Courage, and Terminal Force. His television credits include Walker Texas Ranger, Honey I Shrunk The Kids, and The Revolutionary War.

About Encore, Inc.

Encore, Inc. is a leading interactive publisher in the videogame and CD-ROM markets. In 2002, the company will release such highly anticipated next-gen console games as Jackie Chan Adventures(tm) and Circus Maximus(tm): Chariot Wars. As the nation's largest privately held PC entertainment and education publisher, Encore also offers a broad range of titles under internationally recognized properties, such as Sesame Street(tm), Dragon Tales(tm), National Geographic® and Kaplan.

Encore products are sold in over 35,000 stores nationwide, and in major international markets. The company has been recognized in the past two years by Inc magazine as one of America's 500 fastest growing private companies. For more information, visit HERE.

About Dragon's Lair LLC

Based in San Diego, California, Dragon's Lair LLC is a joint venture between Digital Leisure and the original creators of the 1983 arcade smash hit Dragon's Lair. Dragon's Lair LLC is comprised of legendary animation professionals Don Bluth, Gary Goldman and John Pomeroy, as well as veteran video game creator Rick Dyer. Rounding out the partnership is multimedia industry veteran David Foster, president of Digital Leisure Inc. and the publisher of the Dragon's Lair 2D versions. Dragon's Lair LLC is committed to creating state-of-the-art interactive titles that are supported by motion picture, broadcast and toy ventures.