TDK INVESTS IN SOUND SOURCE
September 11, 2000

TDK USA intends to acquire a controlling interest in Sound Source Interactive. TDK's stake in Sound Source Interactive represents an initial investment of $1,425,000 for 45% of the Company. In addition, and subject to completion of an increase in the Company's authorized shares and certain undisclosed conditions, TDK will invest an additional $3,575,100 for a total $5,000,100 investment and 72% stake in the company.

TDK Corporation President Hajime Sawabe noted, "TDK's recording-media products have long been appreciated for their role in content storage. Now with our investment in Sound Source Interactive, we are creating our own entertainment content for the enjoyment of European and North American consumers. Sound Source Interactive has long years of experience as a developer and seller of interactive software products based on license agreements with U.S. moviemakers. Although it is only a relatively small business in the U.S., since last year Sound Source has played an important role in supplying CD-ROM software products to the European market for TDK."

Sound Source Interactive will be renamed TDK Mediactive, Inc. like TDK's European interactive division and will work to diversify its current product line and build its sales and distribution infrastructure worldwide. In addition, it will continue to collaborate with TDK Recording Media Europe, SA, for product development across many video game platforms.

Shin Tanabe, currently executive director of TDK Recording Media Europe, will relocate to TDK Mediactive's Southern California offices and will assume the post of President and COO. Mr. Tanabe said, "TDK intends to build a worldwide presence in the interactive software industry with a portfolio of products for both current video game platforms and next-generation systems, as well as other new technology delivery systems as applicable. Sound Source Interactive and TDK share a product development philosophy that is family friendly and we will endeavor to publish titles that are fun and exciting, but without explicitly violent content."

Vincent Bitetti, currently chief executive officer of Sound Source Interactive, will continue in that role for TDK Mediactive.