LADYDRAGON.COM - Essential Reality Announces Completion of P5 Version for Take 2 Interactive's Popular PC Game, ``Serious Sam: The Second Encounter''

Thursday December 12, 2002

Essential Reality Announces Completion of P5 Version for Take 2 Interactive's Popular PC Game, ``Serious Sam: The Second Encounter''

Essential Reality, Inc. (OTCBB:ESSR), a developer and integrator of sensory and real-time remote tracking devices, announced today completion of the integration of its P5 technology into the PC game, "Serious Sam: The Second Encounter," developed by Croteam and published by Take 2 Interactive.

"`Serious Sam' is a high-intensity, action-packed game that allows users to hack, blast and annihilate different creatures attacking simultaneously," said Martin Currie, VP of Business Development at Essential Reality. "We feel that the enhanced `P5 enabled' version further intensifies the high-adrenaline experience by enabling game players to do battle with these creatures in a more intuitive and immersive manner. Users will now be able to move in their environment, change and utilize weapons, even zoom while in sniper mode solely through simple movements of their hand in space."

Launched in early November, the P5 utilizes proprietary bend sensor and tracking technologies to enable full interaction with 3D environments. "Serious Sam: The Second Encounter" is the first title to supplement the three P5-enabled games already included with the premier edition of the P5: "Hitman 2," "Tiger Hunt" and a demo version of "Beach Head 2002."

"We are committed to providing a continuous stream of high quality content for the P5, in an effort to maximize the value that users derive from the P5 experience," said David Devor, VP of Marketing at Essential Reality. "`Serious Sam' exemplifies this commitment because it is an already extraordinary game title -- now with a new flare -- made possible by our joint development effort."

    "From the outset, we were intrigued by the capabilities the P5 affords and believed it was poised to have a significant impact on PC gaming," said Roman Ribaric, CEO of Croteam, developer of "Serious Sam: The Second Encounter." "It's always exciting to work with new, cutting-edge technologies that can enhance the gaming experience. The P5 brings a new world of immersiveness to gaming as a whole, and we are particularly pleased with the results we have achieved in `Serious Sam: The Second Encounter.'"

    About "Serious Sam: The Second Encounter"

    "Serious Sam: The Second Encounter" introduces three worlds where cyberpunk once again meets fantasy fiction, and features frantic action in 12 massive single player levels. "Second Encounter" includes three new episodes based in beautifully detailed ancient eras: South America, Babylon and The Medieval Age. With fourteen total weapons at his disposal, three brand new, Sam is more serious than ever. He battles against hordes of old enemies and seven adversarial species in an effort to reach the Mental once and for all.

    Having successfully defeated the Mental forces in ancient Egypt, Sam "Serious" Stone seizes an abandoned Syrian spacecraft. On course in his crusade to finally assassinate the great evil Mental, our hero's spaceship suddenly tumbles into the South American Mountains -- Sam seems destined to stay on Earth. He must fight the tougher, now more experienced members of Mental's destructive forces and find a new way to reach the notorious Mental himself.

    About Essential Reality

    Essential Reality was founded with the goal of becoming a leader in the design, development and integration of tracking and sensory technologies that can be used to provide the ultimate interface between man and machine. Essential Reality seeks to realize this vision through multiple product offerings applying tracking and sensory technologies for different end-user applications. Essential Reality intends to seek diverse vertical market applications as well.

    About the P5

    With its initial product family -- the P5(TM) -- Essential Reality is focusing on developing, manufacturing and distributing next-generation 3-D peripherals for the PC/Mac, console gaming and professional user communities. A USB-based product, the first generation P5 is designed for compatibility with the Microsoft Windows 98 operating system and higher, as well as Mac OS 9 and below.Enhanced Version is

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