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Hip Interactive Unveils Kuju as Development Partner for Highly-Anticipated George A. Romero Game

Hip Interactive Partners with Critically-Acclaimed Developer Kuju Entertainment to Reinvent the Horror Genre

FOR IMMEDIATE RELEASE

Toronto, ON - January 19, 2005 - Hip Interactive Corp. (TSX:HP) today announced that its fast-growing publishing division, Hip GamesTM, has signed an agreement with Kuju Entertainment (AIM: KUJ) for the development of the first game based on the work of popular cult horror director George A. Romero. The game, the name of which has yet to be announced, will be developed for consoles and PC at Kuju's development studio in Surrey, United Kingdom and is expected to be part of Hip's next fiscal year ending March 31, 2006.

"With George A. Romero's cult status and following among horror fans, a property of this pedigree deserves a first class developer. That is exactly what horror fans will get now that we've signed high profile developer Kuju Entertainment," said Arindra Singh, president and chief executive officer of Hip Interactive Corp.

Ian Baverstock, business development director and co-founder of Kuju Entertainment, said, "Our spines are tingling in anticipation. George A. Romero is recognized as one of the leading directors in the horror world. We're excited to be translating the zombies and terror created in George's imagination into an atmospheric gorefest for game players." He continued, "We're also extremely pleased to be working with Hip Interactive, which has become a publishing force to be reckoned with."

Hip Interactive recently announced the signing of an agreement with Living Dead Productions Limited to produce a George A. Romero series of videogames. Romero's work has a massive, worldwide cult following and has established him as the "Master of Gore."

About Kuju Entertainment Ltd.

Kuju Entertainment, one of Europe's leading independent game developers on console, PC and wireless platforms, operates four studios in the UK and has been creating top-rated games for over fourteen years. Kuju maintains specialist console/PC divisions in the action, strategy/tactical, racing and lifestyle genres as well as separate divisions for wireless development and conversion projects.

Recent games worked on include the hit titles "Call of Duty: Finest Hour" for Activision, "Warhammer 40,000: Fire Warrior" for THQ, "Train Simulator" for Microsoft and "Crash Twinsanity" for Vodafone.

Kuju is also a leading publisher of wireless Java games. Kuju Entertainment is a wholly owned subsidiary of Kuju plc. Kuju plc is listed on the Alternative Investment Market (LSE AIM: KUJ). www.kuju.com

About Hip GamesTM

Hip GamesTM (www.hip-games.com), 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 the "Fear Factor: Unleashed TM" video games.

About Hip Interactive Corp.

Hip Interactive (www.hipinteractive.com) 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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