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HEADPLAY, INC. UNVEILS FINAL DESIGN OF THE HEADPLAY PERSONAL CINEMA SYSTEM AT 2007 CONSUMER ELECTRONICS SHOW

Portable, Personal Cinema System Delivers An Immersive, Big Screen Viewing Experience for Gaming, Movie Watching and Internet Use

Santa Monica, CA January 4, 2007 - Headplay, Inc. ("HEADPLAY"), a Los Angeles-based visual entertainment and technology company, today announced the unveiling of the HEADPLAY Personal Cinema System's final production ready design at the 2007 Consumer Electronics Show. The HEADPLAY Personal Cinema System is a portable, visual headset and media center that delivers an immersive, high resolution, cinematic, big screen viewing experience for gaming, movie watching and Internet use. The HEADPLAY Personal Cinema System's innovative technology was first recognized at the prestigious DEMOfall 2006 conference in September, and now the product's breakthrough "Fashion-Tech" design by renowned industrial design firm IDEO is being revealed to the public.

The HEADPLAY Personal Cinema System combines its revolutionary design with proprietary, high-performance optical technologies to deliver a portable, personal viewing experience not currently available in the market. Connecting directly to game consoles, DVD players, iPods, PCs and cell phones, the Personal Cinema System is also capable of reading stored media using compact flash or USB. Use of SD, XD, Memory Stick or Smart Media is also expected to be available at launch. The HEADPLAY Personal Cinema System provides universal compatibility with hardware platforms worldwide. In addition, the Personal Cinema System displays, with content availability, true stereoscopic 3D.

The Headplay Personal Cinema System redefines the portable media device category, providing an immersive and startling 3D viewing experience for both movie and game enthusiasts and a no-compromises mobile entertainment experience for anyone on the go.

"As the demand for portable entertainment options continues to expand, coupled with the 'New Generation 3D' content coming from Hollywood and game publishers, HEADPLAY allows consumers to experience this explosion of content," said Glen Ward, Co-CEO of HEADPLAY, Inc. "We are thrilled to be unveiling our product's unique look and feel at the 2007 Consumer Electronics Show."

Headplay will host private, hands-on demonstrations of the Personal Cinema System during the length of the CES at the Venetian hotel. The company will also hold booth demonstrations at ShowStoppers 2007, a premiere CES launch pad for innovators and award winners in the technology space.

The Personal Cinema System is comprised of three major components: the Viewer, the Liberator and the Navigator.

The Viewer

The Viewer, or headset, is worn by the user and displays a virtual 52" screen, providing an immersive, movie theatre-like experience. The Viewer has been designed by industrial design firm, IDEO, to provide the ultimate in style and comfort for extended wear and viewing. It allows for the simultaneous use of a game controller or keyboard. The Viewer incorporates truly amazing optical technologies and will support various resolution levels up to 1024 X 768. HEADPLAY's patented technology delivers separate but identical images to each eye via a single LCoS micro display, thereby helping to eliminate eyestrain.

The Liberator

The Liberator is both the brains and the heart of the Personal Cinema System. It accepts a composite video, component video and S-video signal in the formats of NTSC, PAL and SECAM. The Liberator runs the software for managing the system and allows for reading and displaying content through its Compact Flash slot or two USB host ports. It enjoys universal connectivity, making it compatible with virtually any device that has video out, including video game consoles, DVD players, video iPods, PCs, cell phones and USB storage devices such as previous generation iPods, thumbdrives or any MP3 player. Just plug and play, with no special drivers required.

The Navigator

The Navigator is a connected remote control that allows the user to select and control content and screen settings. It also serves as the connection point for the Personal Cinema System's high-performance, noise-suppression ear-buds or listening device of your choice.

Initial Market Launch

The HEADPLAY Personal Cinema System will be available to consumers April 2007 for $499 at www.headplay.com. ; Additional accessories will be available for purchase at launch.

About HEADPLAY

HEADPLAY, Inc. is a visual entertainment and technology company with operations in Los Angeles, California, U.S.A., Calgary, Alberta, Canada and Beijing, China. HEADPLAY is dedicated to developing new and visionary products for the consumer electronics market.

For more information, please visit: http://bhimpact.gamespress.com/client_page.asp?i=143

MEDIA CONTACTS:

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karen_raque@bhimpact.com

Parnaz Taheri

Bender/Helper Impact

(310) 694-3120

parnaz_taheri@bhimpact.com

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