Interplay Announces Second Quarter 2004 Earnings, Remains NASDAQ Compliant

Interplay Announces Second Quarter 2004 Earnings, Remains NASDAQ
Compliant 


IRVINE, Calif., Oct. 14  /PRNewswire-FirstCall/ -- Interplay Entertainment
Corp. (OTC:IPLY) (BULLETIN BOARD: IPLY)  reported today it has received notice
from NASDAQ that the company will remain listed on the NASDAQ Bulletin Board. 
The company yesterday announced operating results for the second quarter of
2004.

For the second quarter ended June 30, 2004, the Company reported a net loss of
$2.0 million, or $.02 per basic and diluted share, compared to a net loss of
$5.4 million, or $.06 per basic and diluted share, in the same period last
year.

Commenting on the announcements, Interplay Chairman and Chief Executive Officer
Herve Caen said, "This has been an incredibly challenging first half of 2004
for Interplay, its investors and employees.  Although significant hurdles
remain, we are pleased to be back in compliance with the OTC Bulletin Board,
moved into our new corporate offices, and moving forward with our plan to enter
into Massively Multiplayer Online Gaming."

Net revenues for the second quarter 2004 were $3.1 million versus $1.3 million
in the same period a year ago, an increase of 147 percent.  Operating loss
decreased 78% percent from the prior year to $1.183 million in the second
quarter 2004 as compared to $5.378 million in the second quarter 2003.  The
decrease in net loss, operating losses, and increase in net revenues was mainly
a result of continuing sales in the second quarter from the first quarter
releases of "Baldur's Gate: Dark Alliance II" and "Fallout: Brotherhood of
Steel" in Europe and recording a $1.175 million gain on the sale of the rights
to develop "Fallout 3" on all platforms other than massive multiplayer.  The
second quarter 2003 did not have comparable sales.

For the six-month period ended June 30, 2004, the Company reported a net loss
of $2.9 million, or $.03 per basic and diluted share, compared to a net income
of $.2 million, or $0 per basic and diluted share, in the same period last
year.  Net revenues for the six-month period ended June 30, 2004 were $11.6
million versus $20 million in the same period a year ago, a decrease of 42
percent.  For the six-month period ended June 30, 2004 the Company reported an
operating loss of $2 million compared to operating income of $.2 million from
the prior year.  The decrease in net income and net revenues and increased
operating loss for the six-month period ended June 30, 2004 compared to 2003 is
mainly a result of including $15 million in revenue related to the sale of all
future interactive entertainment publishing rights to the "Hunter: The
Reckoning" franchise in 2003, offset by continuing sales in the second quarter
2004 from the first quarter releases of "Baldur's Gate: Dark Alliance II" and
"Fallout: Brotherhood of Steel" in Europe and recording a $1.175 million gain
on the sale of the rights to develop "Fallout 3" on all platforms other than
massive multiplayer.

Gross profit margin for the second quarter 2004 was 57%, compared to 12% in the
second quarter of 2003.  Gross profit margin was higher in the second quarter
this year as compared to last year mainly due to 2003 being negatively impacted
by higher amortization of prepaid royalties on externally developed products
including approximately $.6 million in fiscal 2003 in write-offs of cancelled
development projects or on titles that were not expected to meet our desired
profit requirements.  2004 did not have a comparable write-off.  2004 had sale
of the rights to develop "Fallout 3" which yielded approximately 100% profit
margin and 2003 did not have a comparable sale.  Gross profit margin decreased
to 44% for the six months ended June 30, 2004 period from 60% in the comparable
2003 period.  This was primarily due to the sale of the "Hunter: The Reckoning"
license, which yielded approximately an 80% profit margin in 2003, partially
offset by the sale of the rights to develop "Fallout 3" in 2004.

Net revenues by platform for the second quarter of 2004 were 10 percent PC, 52%
console, and 38 percent OEM, royalties and licensing.  On a geographic basis,
North America accounted for 10% of total net revenues, International
represented 52% percent, and OEM, royalty and licensing accounted for 38%.

Net revenues by platform for the six-month period ended June 30, 2004 were 9%
PC, 79% console, and 12% OEM, royalties and licensing.  On a geographic basis,
North America accounted for 6% of total net revenues, International represented
82%, and OEM, royalty and licensing accounted for 12%.

About Interplay Entertainment Corp.

Interplay Entertainment is a leading developer, publisher and distributor of
interactive entertainment software for both core gamers and the mass market. 
Interplay develops games for personal computers as well as next generation
video game consoles, many of which have garnered industry accolades and awards.
 Interplay releases products through Interplay, Black Isle Studios and its
distribution partners.

Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995

Statements contained in this release except for historical information are
forward-looking statements that are based on current expectations and involve
risks and uncertainties.  Without limiting the generality of the foregoing,
words such as "may," "will," "expect," "believe," "anticipate," "intend,"
"could," "estimate," or "continue" or the negative or other variations thereof
or comparable terminology are intended to identify forward-looking statements.
The risks and uncertainties inherent in such statements may cause actual future
events or results to differ materially and adversely from those described in
the forward-looking statements.  Examples of such forward-looking statements
include, among other things, future improvements in gross margin, operating
expenditures, and product sales.  Important factors that may cause actual
future events or results to differ materially and adversely from those
described in the forward-looking statements include (a) the success of the
company's future adventure and role playing games, (b) consumer reaction to the
company's future games, (c) the company's ability to consistently and timely
release profitable products and its ability to control costs, and (d) other
factors discussed in the company's filings from time to time with the
Securities and Exchange Commission, including but not limited to the company's
annual report on Form 10-K for the fiscal year ended December 31, 2003 and the
company's subsequent quarterly filings on Form 10-Q.  The company disclaims any
obligation to revise or update any forward-looking statements that may be made
from time to time by it or on its behalf. 

DATASOURCE: Interplay Entertainment Corp.



CONTACT:  Luke Haase, [phone], for Interplay Entertainment Corp.

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