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Hip Games™ Announces "Call of Cthulhu: Destiny's End"

Survival Horror Game Based on H.P. Lovecraft's World Scheduled to Ship in 2006

'The oldest and strongest emotion of mankind is fear.

And the oldest and strongest kind of fear is fear of the unknown.'

- H.P. Lovecraft

Toronto, CANADA - May 13, 2005 - Hip GamesTM is pleased to announce the signing of "Call of Cthulhu: Destiny's End," a third-person survival horror game based on the works of revered author H.P. Lovecraft. Developed by Headfirst Productions, the game opens in a contemporary setting deeply entrenched in the perverse world of Cthulhu mythos. In a unique twist to the horror genre, "Destiny's End" will require the player to control two different characters that are dependant on each other for survival. "Call of Cthulhu: Destiny's End" is scheduled to launch in 2006.

Destroyed by a government raid in 1928, the mysterious town of Innsmouth was left to fester in ruins for nearly 80 years. The two central characters, Emily and Jacob, return to search for the truth as they unveil the horrors of the town's past. Destiny's End will break new ground in the field of survival horror by featuring innovative co-operative gameplay whereby two players can each assume the role of one of the main protagonists at any time in the game and work together to overcome their deepest fears. Players will have to use both characters to defeat their enemies thanks to fantastic co-operative fighting combos.

Featuring a blend of fierce action, combat and exploration, gamers will journey into a world of malevolence and horror with "Call of Cthulhu: Destiny's End."

"The unique and weird universe created by H.P. Lovecraft has been terrifying generations for the last hundred years," said Arindra Singh, President & Chief Executive Officer of Hip Interactive Corp. "This newest addition to the Lovecraft world will add another layer of mystery to the mythos."

"H.P. Lovecraft inspired a litany of great writers and film makers," said Mike Woodroffe, marketing director and co-founder of Headfirst Productions. "We intend to do his legacy justice by creating the most terrifying survival horror game yet."

About Hip GamesTM

Hip GamesTM, Hip Interactive's publishing division, leverages the Company's existing distribution infrastructure to move up the video game supply chain. Hip has entered into distribution and publishing arrangements with publishers and developers from around the world. The licenses give Hip the exclusive right to publish and/or distribute PC and video game titles in North America, with Hip Interactive Europe acting as the publishing and distributing arm of Hip GamesTM in Europe. As well, with the acquisition of ARUSH Entertainment, Hip has acquired all of ARUSH's rights to current projects, including the highly anticipated title "Playboy: The MansionTM" and "Fear Factor: UnleashedTM" video games.

About Headfirst Productions

Headfirst Productions was established in 1998 by father and son combo Mike and Simon Woodroffe. With over 100 titles to his name, Mike has been in the industry for over 18 years and started Headfirst as an independent developer of top quality games for PC and consoles such as the Playstation®2, Nintendo GameCube and Microsoft Xbox. Based in Birmingham, UK Headfirst's development policy has been to personally acquire high quality, proven licenses with a large pre-installed fan base (such as Call of Cthulhu and Deadlands) then develop exciting product based on those concepts.

About Hip Interactive Europe ( www.hip-europe.com ) :

Hip Interactive Europe is a full subsidiary of Hip Interactive (TSX: HP). Hip Interactive is a publisher and distributor of videogames and accessories for interactive leisure. With its headquarters in Marseilles (France), Hip Interactive Europe publishes and distributes videogames on all the European territories as well as other PAL territories. Hip Interactive Europe is present on all the main platforms: PC, PlayStation 2, Xbox and Game Boy Advance. Hip Interactive Europe produces games based on its own brands but also on licences coming from the most important Hollywood Majors such as The Mummy The Animated series from Universal or Garfield from PAWS.

About Hip Interactive Corp.

Hip Interactive is a leading provider of electronic entertainment products, including PC and video games, movies, video arcade games, and proprietary games, branded as Hip GamesTM, and accessories, branded as Hip GearTM. The Company distributes all first party products, including SCEA, Microsoft and Nintendo hardware, software and accessories, as well as third party licensed video game software. With offices across North America and in Europe, Hip uses its distribution business to leverage into higher margin, higher growth areas of the electronic entertainment industry, such as licensing, publishing and its proprietary games and accessories. Hip Interactive trades on The Toronto Stock Exchange under the trading symbol "HP".

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