INTERPLAY OEM, INC. AND GRIN ANNOUNCE EXCLUSIVE OEM DISTRIBUTION AGREEMENT

Interplay OEM to Distribute Titles for Worldwide Bundling & Premium

IRVINE, California, January 21, 2002 - Interplay OEM, Inc., a wholly owned subsidiary of Interplay Entertainment Corp. (NASDAQ: IPLY) announced today a worldwide Original Equipment Manufacturer (OEM) and Premium distribution agreement with Sweden based GRIN Inc. The agreement gives Interplay OEM, Inc. worldwide OEM and premium distribution rights on published titles from GRIN. Included is the breathtaking GeForce3(tm)-enhanced racing game, Ballistics(tm).

"One of our goals as a company is to work with the industry's best developers who focus on technology-driven titles that push the gamers' limits," said Jill Goldworn, President of Interplay OEM, Inc. "GRIN's success is based on their ability to produce original, innovative and high quality products and we are very pleased to represent them to the global hardware community and the promotions industry, worldwide."

"Having created Ballistics - the fastest game on earth, GRIN is happy to see it is going to be accessed by so many high-end gamers purchasing new hardware in the year to come. We trust Interplay OEM as our partner to utilize their specific knowledge of the OEM market and with Ballistics deliver added value to their clients' products," said Bo Andersson, Chief Executive Officer, GRIN Inc.

About GRIN
GRIN Inc, Stockholm Sweden, is a game developer bringing forth games on the PC and Xbox. GRIN has been working closely with NVIDIA Inc. to utilize their latest GeForce series of cards in all of GRIN's present and upcoming games. Specializing in pixel and vertex-shader technology, GRIN raises the value of high-end hardware with high-end games.

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. For example, Interplay's ability to continue as a going concern is dependent on securing external sources of funding to continue operations. In addition, there can be no assurance that the Company will be successful in completing any strategic alliances, licensing transactions, and financings, or that the Company's current scheduled titles will ship in the projected time frame or that they will be as popular as the Company presently anticipates, that the Company will be able to achieve its projected continued revenues from its existing titles, or that the Company will be able to increase the number of console titles it releases. Additional important factors that may cause a difference between projected and actual results for Interplay include, but are not limited to, future capital requirements, that equity or bank financing will be available on terms satisfactory to the company or at all, risks of loss of the Company's listing on the Nasdaq National Market, risk of delays in development and introduction of new products, dependence on new product introduction which achieve significant market acceptance and the uncertainties of consumer preferences, risks of product returns and markdown allowances, dependence on third party software developers for a significant portion of new products, risks of rapid technological change and platform change, intense competition, seasonality, risks of product defects and resulting returns, dependence upon licenses from third parties, risks associated with, dependence upon third party distribution, dependence upon key personnel and risks associated with international business, intellectual property disputes and 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 reports on Form 10-K and the Company's subsequent quarterly filings on Form 10-Q. Interplay 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.

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