INXILE ENTERTAINMENT ACQUIRES FANTASTIC CONTRAPTION™

FOR IMMEDIATE RELEASE

NEWPORT BEACH, Calif.– Dec. 16, 2008– inXile entertainment today announced the acquisition of Fantastic Contraption™, an online physics puzzle game that the company sees as the next Line Rider™ ( www.linerider.com). The brainchild of independent developer Colin Northway, Fantastic Contraption was first released over the internet ( www.fantasticcontraption.com) in July of 2008 and to date almost three million people from almost every country in the world have visited the site, creating millions of contraptions. inXile holds the rights to Fantastic Contraption for all platforms and plans to release an iPhone™ application in time for the holiday season.

“Fantastic Contraption fits perfectly with our user generated content strategy and when we combine the 1 million unique visitors a month from Line Rider with the Fantastic Contraption traffic, it doubles our traffic to 2 million unique people each month,” said Brian Fargo, chief executive officer of inXile entertainment.“We believe Fantastic Contraption is the next internet phenomenon and in this era of large game companies producing big, expensive games, some of the most amazing games are the product of one person with a vision. Fantastic Contraption is just that sort of game and we knew it the first time we played it.”

Fantastic Contraption is a physics puzzle game where the objective in each level is to move all red objects into a rectangular goal area. Players are provided with a blue rectangular building area and different materials to build their device.

“The idea of Fantastic Contraption came to me in a flash and I spent every waking hour working on it,” said Colin Northway, indie game developer and the creator of Fantastic Contraption.“When my friends and family played early versions and couldn’t stop playing, I knew I had something and when within a week of its release there were over 20,000 people a day playing it, wow, I was just amazed!”

Northway continued,“My dreams for Fantastic Contraption have outgrown my ability to realize them on my own as there is a limit to what one person sitting on the couch with a laptop can do. After talking with inXile, it became immediately clear that they shared my passion for games and my dreams for Fantastic Contraption so it was a no-brainer to work with them.”

About inXile entertainment

Located in Newport Beach, California, inXile entertainment is a game development company that focuses on both licensed and original intellectual properties. Formed in late 2002 by Interplay Entertainment founder Brian Fargo, inXile entertainment develops for personal computers and the major console platforms including the Nintendo Wii™, Nintendo DS™, PLAYSTATION®3 (PS3™) computer entertainment system and the Xbox 360™ video game system from Microsoft. Their products include The Bard's Tale and Line Rider. For additional information on inXile and its products, visit the website at http://www.inxile-entertainment.com.

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Line Rider and Fantastic Contraption are trademarks of inXile entertainment, Inc.

CONTACT:

Kirk Green

Gonzo Communications

(949) 459-2165

kirk@gonzocom.com


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