Spectacular 3D Environments, Revolutionary Artificial Intelligence, Intuitive Level Editor and Vast Internet Play Usher in New Generation of Gaming. NEW YORK, NY, May 22, 1998 - It is called `Unreal,' but it is indeed a triumphant reality to gamers around the world, as GT Interactive Software Corp. (NASDAQ: GTIS) ships 1998's most eagerly anticipated 3D action video game for the PC, Unreal.

"One of the most highly awaited games of all time, Unreal is poised to set a new benchmark in the 3D action/adventure category," says Holly Newman, vice president of Marketing for GT Interactive. "We are excited to bring to players - both novices and gamers alike - an experience that combines cutting-edge technology with innovative game play, and we believe Unreal has the ability to further broaden the audience for interactive entertainment."

Heralded by Next-Generation magazine as "the best looking game of all time," and PC Gamer magazine as "the future of gaming," Unreal offers heart-pounding, single-player action; intense multi-play for up to 16 gamers; as well as the Unreal Level Editor - one of the industry's most advanced, easy-to-use level editor programs. The level editor allows even novice players to create their own Unreal levels or customize virtually any aspect of the game itself in "¬" the time of other editors.

"Unreal is the combined vision of the talented and dedicated teams at Epic MegaGames and Digital Extremes, who shared the dream of creating the most captivating action/adventure game ever," says Mark Rein, vice president of Epic MegaGames, Inc. "We're confident that gamers around the world will believe that their wait was well worth it when they sit down to play."

Designed for the Windows 95/Windows 98/Windows NT platforms, Unreal transports one or more players to a beautiful yet deadly planet which, as a result of a mysterious ore, has become the "Bermuda Triangle" of space, entwining alien races from across the galaxy in a battle for survival. Unreal's visuals set a new standard for realism - water is transparent, flames randomly flicker, moving clouds cast shadows -- while dynamic lighting and music changes complement the on-screen action.

GT Interactive's Unreal offers an exciting array of features, including:

Spectacular dynamic lighting -- enhancing Unreal's immersive 3-D environments; Optimized for Intel's MMX technology, Power VR and 3Dfx 3D accelerator chip sets - resulting in unbelievably fast game play with high-resolution graphics; Portal technology - literally bringing a new dimension to game play by allowing levels to defy 3D Euclidean space; Enhanced enemy artificial intelligence - resulting in intelligent, cunning and deadly life forms; Internet play with true client server environments -- offering multi-player matches on the Internet that are easy to set up and play. Ability to host own Unreal multi-play tournament and "hotlink" between user-created levels; Many highly-detailed polygonal enemies -- each with more than 300 frames of animation; Bilinear texture smoothing -- making environments appear more realistic, resulting in a far more intense game play experience; Vast true 3-D environments -- including spacecrafts, ancient ruins, mines and castles, each with their own unique challenges and secrets; Deadly arsenal of high-power weapons; Multiple intriguing puzzles; Dynamic cinematic quality soundtrack and special audio affects, adding to Unreal's eerie atmosphere and realism, including, Dolby Surround Sound and Aureal's A3D sound system. Unreal will ship with a fully functional beta version of Epic's Unreal Level Editor - an advanced 3D authoring tool which provides a sophisticated, yet easy-to-learn, method of creating 3D environments and objects by which players may create their own Unreal worlds. According to Computer & Net Player magazine, "if this doesn't bring level editing to the masses, nothing will." A feature-enhanced, fully supported and documented version of the Unreal Level Editor with additional 3D content and a tutorial is currently under development and will be released separately later this year.

GT Interactive is supporting the launch of Unreal with an in-depth marketing campaign. Comprised of extensive print advertising, online promotions, direct mail, in-store promotions and innovative merchandising, including novels and strategy guides, GT Interactive's Unreal marketing campaign will run through the holiday season.

Unreal is currently available at retail outlets nationwide at a suggested retail price of $54.95.

Epic MegaGames Inc. is a privately held company based in Rockville, MD, with offices in the U.K. Established in 1991, Epic produces, markets and distributes cutting-edge PC games. Best known for Jazz Jackrabbit and Epic Pinball, the company has released more than 20 products. In addition to worldwide retail publishing arrangements, Epic distributes its products directly to end users using the shareware model. Additional company and product information may be obtained through Epic's World Wide Web site at http://www.epicgames.com/

Digital Extremes is a privately held company in Waterloo, Canada. Established in 1993, Digital Extremes is a development studio for video games on both the PC and console systems and is best known for Epic Pinball, Extreme Pinball and Unreal. Additional information can be found at the Digital Extremes web site: http://www.extremes.on.ca /

Headquartered in NY, GT Interactive Software Corp. is a leading global publisher of entertainment and edutainment software under the GT Interactive, Cavedog Entertainment, SingleTrac and MacSoft brands for personal computers as well as game consoles from Sony Computer Entertainment America Inc. and Nintendo. The company operates development studios in Seattle, Salt Lake City and San Luis Obispo, CA, as well as MN-based GT Value Products, a market share leader in budget software under the WizardWorks, CompuWorks and Slash brands. Located on the World Wide Web at http://www.gtinteractive.com/, GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS.