For the first quarter ended March 31, 2004, the Company reported a net loss of $.9 million, or .01 per basic and diluted share, compared to a net income of $5.6 million or $.06 per basic and diluted share, in the same period last year. Net revenues for the first quarter 2004 were $8.4 million versus $18.8 million in the same period last year, a decrease of 55 percent. Finally the Company reported an operating loss of $.9 million in the first quarter as compared to operating income of $5.6 million in the first quarter of 2003.

Commenting on the announcement, Mr. Caen said, "Based on a detailed review of where our industry stands and the level of interest in the gaming community in taking some of our premier properties online, we are now pursuing several options to fund our entry into Massively Multiplayer Online Gaming with titles including Fallout. Initial feedback from our investment bank and ongoing dialogue with others in the gaming sector appear to confirm that the combination of our valuable and popular intellectual properties with the rapidly growing online gaming community is the best way to maximize Interplay shareholder value."