GT INTERACTIVE AND EPIC MEGAGAMES STRIKE
EXCLUSIVE GLOBAL PUBLISHING AGREEMENT
FOR BOTH AN 'UNREAL ' SEQUEL AND 'UNREAL TOURNAMENT'
Epic Selects Legend Entertainment to Develop Unreal II

NEW YORK, December 17, 1998 - Further strengthening its product portfolio with the top-selling franchise that broke new ground in 3D action games, GT Interactive Software Corp. (Nasdaq: GTIS) announced today it has obtained exclusive global publishing rights to two new Unreal titles from Epic MegaGames.

GT Interactive will publish Unreal II, the sequel to Unreal; and Unreal Tournament, a completely new entry in the category. GT also obtains an option to utilize the specially designed Unreal II engine to create additional software titles.

Epic MegaGames has selected Legend Entertainment to create Unreal II on its behalf. Legend is currently developing the PC game Wheel of Time, which utilizes the Unreal engine and is being published by GT Interactive in 1999. Legend is also working with Epic on the development of the official Unreal Level Pak, which includes more than 10 new previously unreleased Unreal levels. GT Interactive plans to publish both Unreal Tournament and the Unreal Level Pak in the Spring of 1999.

"We are pleased to strengthen our relationship with Epic MegaGames," said Ron Chaimowitz, chairman and chief executive officer for GT Interactive. "Unreal took the gaming world by storm with its ground-breaking game play and breathtaking graphics. We believe Unreal Tournament, which offers a completely new experience, has the potential to broaden the audience for multiplayer online entertainment, while Unreal II could raise the bar for 3D action once again."

Unreal Tournament - All-New, Easy to Learn Game Play
One of the most highly anticipated games of 1998, the award-winning Unreal has performed among the industry's top 10 best-selling PC games since GT Interactive released it in May of this year. Unreal Tournament pits players against the hardest criminals in the galaxy in multiple new kinds of contests and settings. The goal is to become the Unreal Grand Master, testing your skills against, or fighting alongside, teams of the best simulated human opponents ('bots') ever seen in a 3D action game. Players can also take the challenge online, playing with combinations of 'bots' and human opponents.

Designed for players from novice to expert, Unreal Tournament features training, novice, normal, hardcore and turbo modes. The favorite Unreal weapons have been brought back and improved, while several new weapons make their debut, including the 'Redeemer' - a weapon so lethal you can actually control the projectile through the eyes of it's built-in camera. An advanced, state-of-the- art, user interface makes it simple to play Unreal Tournament, easy to get online and easy to adjust the game to their specific preferences. Programming enthusiasts used the tools that shipped with Unreal to make it one of the most widely modified games ever. Unreal Tournament extends the capabilities of enthusiasts even further, allowing them to make more sophisticated improvements to Unreal Tournament than any previous 3D action game has ever allowed. More details about Unreal Tournament will be released soon. The Unreal Level Pak will also include new enemies and never-seen-before weapons.

"A big part of Unreal's huge success on PC and Mac was due to the unwavering support it got from GT Interactive," said Mark Rein, Vice President of Epic MegaGames. "With Unreal Tournament, the Unreal Level Pack and Unreal II, we are building on our relationship with GT and working hard to turn the Unreal product line into a successful ongoing franchise. We're very excited about having Legend Entertainment work with us to help extend the Unreal universe. Their work on Wheel of Time is nothing short of spectacular and the experienced they've gained using and extending our Unreal Engine will ensure that Unreal II is truly going to be a blockbuster sequel to Unreal."

"We are excited to be working with Epic and GT on Unreal II and the Unreal Level Pack," said Michael Verdu, Chairman of Legend Entertainment. "We have a talented creative and technical team applied to these franchise products. For Unreal II, we'll be combining new technology, innovative game design, and Legend's strong art production capabilities to create a cutting edge action game. Unreal fans won't be disappointed by the results; this game is going to ROCK."

Epic MegaGames Inc. is a privately held company based in Rockville, Maryland with a wholly owned subsidiary in the United Kingdom. Established in 1991, Epic produces, markets and distributes cutting-edge PC games. The company is now best known as the creators of the hit PC 3D action game Unreal and the Unreal Engine which it has licensed to several top PC game developers for games in a variety of genres. Additional Company information can be obtained through Epic's World Wide Web site at http://www.epicgames.com/.

Legend Entertainment is a developer and publisher of entertainment software products for personal computers. Since its inception in 1989, Legend has created 16 titles and has established a reputation for excellent game design.

Headquartered in NY, with 1997 revenues of $531 million, GT Interactive Software Corp. is a leading global cross-media entertainment company which develops, markets, merchandises and distributes game software; creates e-commerce, electronic storefront leasing, advertising, content licensing and multiplayer gaming opportunities on the Internet; and produces television programs. Via its OneZero Media subsidiary, GT operates a specialized entertainment portal, www.getwild.com, which acts as the Entertainment Zone on AltaVista; and produces the nationally syndicated television program, The Wild Wild Web. The company's software labels include GT Interactive, Humongous Entertainment, Cavedog Entertainment, SingleTrac, WizardWorks, CompuWorks, MacSoft and Slash.

# # #