Develop

inXile entertainment Announces SparkWorkz Division

NEWPORT BEACH, Calif.– May 7, 2008– inXile entertainment today announced the formation of a new online business division, SparkWorkz ( www.sparkworkz.com), and has named former Microsoft executive David Heeley as Director of this new division. The new business unit will build an online network and community showcasing highly creative user-generated content.

“Our goal is to construct a highly entertaining and engaging online destination for people to show off their creative talents across a number of different game and non-game media environments,” said Brian Fargo, chief executive officer of inXile entertainment.“Our experience with the internet sensation Line Rider proves that there is a very large demand for mediums that can allow people to showcase their artistic talents.”

Fargo continued,“Today there are over 50,000 videos of Line Rider creations on YouTube alone, with the top track bringing in over 7,000,000 views. Fostering and serving this talent pool is a top priority for us, while providing advertisers and marketers with innovative opportunities to be part of this community. David brings a wealth of knowledge to this new role and we expect to see him build an amazing new experience for fans in the coming months.”

“The success of SparkWorkz and inXile will be achieved by delivering on our vision to bring fans of high quality, user-generated content throughout the world closer to the people, information and activities that matter to them - where, when and how they want it,” said Heeley.

At Microsoft, Heeley recently held the position of Regional Business Development and Sales Manager for the Microsoft Online Services Group in Singapore. In the 24 months that Heeley was in this capacity, he led efforts to establish MSN and Windows Live as a Southeast Asia online media industry leader. Prior to his role at Microsoft, Heeley held similar positions across North America, Europe and Asia in pre-sales, sales, and business development. He is a graduate of the University of Western Ontario in Ontario, Canada.

About inXile entertainment

Located in Newport Beach, California, inXile entertainment is a game development company that focuses on both licensed and original intellectual properties. Formed in late 2002 by Interplay Entertainment founder Brian Fargo, inXile entertainment develops for personal computers and the major console platforms including the Nintendo Wii™, Nintendo DS™, PLAYSTATION®3 (PS3™) computer entertainment system and the Xbox 360™ video game system from Microsoft. Their products include The Bard's Tale and Line Rider. For additional information on inXile and its products, visit the Web site at http://www.inxile-entertainment.com

# # #

FOR IMMEDIATE RELEASE CONTACT:

Kirk Green

Gonzo Communications

(949) 459-2165

kirk@gonzocom.com