ARTIFICIAL LIFE Launches Award Winning App Toy: Zombie Burbz

Artificial Life, Inc. (OTC:ALIF), an innovative investment company, announced today that its production studio ALife Studios, Inc. has developed and launched a smartphone app called "Zombie Burbz", which interacts with physical toy figures with WowWee Group Limited on iTunes.

Zombie Burbz is sold under the AppGear™ brand, which has won the Best of Toy Fair 2012 by Popular Science earlier this year.

Zombie Burbz consists of a collectible line of fun and infectious Zombie toy characters that players can move across their smartphone screen to interact and play the game. In the game, zombies are tired of being misunderstood by their neighbors. They're just the average, slowly decomposing suburbanites who want to keep up with the Joneses, not eat them. These undead trash-munchers need help to achieve the suburban dream, fight off angry mobs of the living and feed their craving for garbage.

Features:

• 4 unique story lines (Avenue, Diner, Services or High School) and 64 missions in total
• Use the deluxe Zombie toy figure across the screen to control the in-game zombie action
• Control figures to unlock unique missions, abilities and enemies on smartphone to progress through the game
• Find and use traps and weapons to fight human hordes
• Fend off attackers with screams, burps, snotballs and other wretched weapons
• Trick enemies with stash-o'-cash, zombie-in-a-box, pinata and other treacherous traps
• Collect garbage to boost health
• Compatible with iOS devices, and will be compatible with a range of selected Android smart devices later this quarter

The game is now live on the Apple App Store and is available for free download at: http://itunes.apple.com/us/app/zombieburbz/id481595322?mt=8

For demo videos, please visit: http://goo.gl/8MgzX

"Collectable app toys are the latest trend in the world of toys and mobile gaming. We are excited to work with WowWee Group to bring these cool app toys to the market. This is a valuable opportunity for our ALife Studios as this partnership leads to a completely new and scalable business area which is expanding rapidly. We have developed two app toys so far namely "Zombie Burbz" and "Elite CommandAR", which made their debut at the CES in Las Vegas in January 2012. We will develop and release more innovative apps for toys soon. We hope this marks the beginning of a long term and fruitful relationship with WowWee Group Limited," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

About Artificial Life, Inc.

Artificial Life, Inc. is a new kind of investor. We act as a global incubator and business network provider and facilitator for our investment companies, assisting them in their funding efforts, sales, production, and general business development activities. When needed, we also inject our valuable intellectual property into our investment companies for their use. We launch companies and invest mainly in the BRICS (Brazil, Russia, India, Greater China and South Africa) markets with a focus on smartphone content and wireless technology such as: near field communication, mobile business apps and games, mobile health services, social networking apps and games, and mobile commerce. We have won many industry awards for outstanding technology and products in prior years. Our current investment portfolio consists of the following companies: ALife Studios (www.alife-studios.com ), Green Cortex (www.green-cortex.com ) and ARE (www.arereality.com ).

Artificial Life, Inc. is a Delaware registered corporation founded in 1994 in Boston. Our shares are trading on OTC (OTC:ALIF). Our global headquarters is in Hong Kong.

For more information on ARTIFICIAL LIFE, INC., please visit: www.artificial-life.com

The Artificial Life logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1669

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our future results of operations, financial condition and business prospects. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to: the general economic conditions in the markets in which we operate; the success of our newly adopted business model and strategy; our ability to find investment targets for reasonable conditions; the economic conditions in the BRICS nations; our ability to sell equity or assets and intellectual property; our ability to obtain additional funding to operate and grow our business and to do investments; changing consumer preferences and uncertainty of market acceptance of our products; timely adoption and availability of broadband mobile technology; market acceptance for use of mobile handheld devices;; our reliance on a relatively small number of clients and brands; our ability to license brands from others; our dependence upon resellers and telecommunication carriers and operators to distribute our products; our ability to successfully develop, introduce, and sell new or enhanced products in a timely manner; and the timing of new product announcements or introductions by us or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB filed on August 2nd, 2011. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

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