S.E.A. Multimedia Ld - Acquisition

RNS No 9977p
S.E.A. MULTIMEDIA LIMITED
29th July 1997


S.E.A. MULTIMEDIA ACQUIRES 3D ON-LINE GAMES COMPANY 
KIDUM MULTIMEDIA LTD

The Board of S.E.A. Multimedia Ltd. ("S.E.A."), an Israel-based games
publishing and technology development company, is pleased to announce the
acquisition of the business and assets (including technological expertise)
belonging to Kidum Multimedia (1995) Ltd., a subsidiary of the Israeli company
Kidum Promotion and Publishing (1981).

The consideration for the acquisition will be satisfied by the issue of an
additional 2,235,165 Ordinary shares in S.E.A. to Kidum Multimedia, subject to
the granting of admission to listing of those shares on the Alternative
Investment Market by the London Stock Exchange.  The shares will represent
nine percent of the enlarged share capital of S.E.A.. Kidum Multimedia has
undertaken not to dispose of the shares it will receive in S.E.A. for at least
one year.

The business of Kidum Multimedia was established three years ago and has
focused on creating state-of-the-art 3D technology for the Internet and
developing high-end CD-ROM and on-line games.  Recently, the company launched
a new game called "Virus" and signed significant distribution agreements with
distributors in the UK, USA and Japan, with advances in excess of $500,000. 
S.E.A. will have the benefit of part of these advances as well as future
revenue from the product.

"Virus" is a sophisticated multiplayer strategy game involving an imaginary
computer virus released in a virtual environment.  The player engages in
complex strategic warfare in a graphically striking 3D environment to
eradicate the virus and keep global networks 
safe.  A new title, a "shoot-em-up" action game called "Chase", is to be
launched shortly and others are under development.

The acquisition of this business follows earlier announcements by S.E.A. of
its intention to seek out such opportunities, and is in line with its declared
policy to accelerate its involvement in the development and marketing of
Internet-related games, and in particular, multiplayer games - a market that
is predicted to expand rapidly over the next decade.  Kidum's fifteen-strong
team of programmers and developers will join S.E.A.'s existing staff, bringing
the total number to approximately fifty employees, and providing the necessary
base of talent and skills to achieve significant growth over the next few
years.

"We are extremely excited about S.E.A.'s acquisition of Kidum," said Rona
Segev, Managing Director of Kidum Multimedia, who will become Head of Games
Publishing at S.E.A..  "Kidum's 3D technology and games expertise, combined
with S.E.A. Multimedia's development capabilities and international reputation
for high quality products, will result in the formation of a dynamic
international company."

S.E.A. recently signed a distribution agreement with Mpath, the leading US
games network company, for the release of @Range, its first "massively
multiplyer" game.  It also has a number of "hybrid" (CD-ROM and on-line) game
titles currently under development which will be ready for marketing shortly. 
The acquisition of the Kidum business promises to accelerate growth in the
games development and Internet technology areas, complementing and
strengthening S.E.A.'s capabilities in these fields.

Commenting on the acquisition, Tal Barnoach, Chief Executive of S.E.A., said:
"This year S.E.A. has embarked on a period of major growth in the areas of
high-end games publishing, Internet-related technologies, and digital sports
publishing.  The strategic acquisition of Kidum Multimedia will position
S.E.A. for rapid growth in the games business, and we anticipate that in early
1998 we will begin to see results confirming S.E.A.'s position as an industry
leader in its chosen fields."


For Further Information Contact:

S.E.A. Multimedia                             Tel: [phone] (Israel)
Tal Barnoach, CEO                             email: [e-mail]
Ellen Rubin, Head of Marketing                email: [e-mail]
Website: http://www.sea.co.il

Hudson Sandler Limited                        Tel: [phone]
Tim Robertson

END