ESSENTIAL REALITY’S NEW P5™ CONTROLLER TECHNOLOGY TO ENHANCE LIONHEAD’S POPULAR "BLACK & WHITE" VIDEO GAME

New York, NY, May 29, 2002 — Essential Reality, LLC today announced today that it has executed a letter of intent with Lionhead Studios, one of the world's leading computer game developers, granting Essential Reality the right to fully integrate it’s new P5™ technology into Lionhead’s popular PC games, “Black & White” and “Black & White: Creature Isle.” In addition to enabling Black & White to work with the P5™ controller, the two companies are planning a number of co-promotion and joint-marketing initiatives to promote the P5™ enhanced versions of the games.

"Black & White is the perfect gaming platform to demonstrate the power and technical achievement of our new P5™ technology," said Martin Currie, VP of Business Development. "Players will be able to directly control the characters and action of Black & White with intuitive movements of their hand and fingers. Black and White has sold over 1.8 million units and has a large and active user base. Enhancing the game with our P5™ technology will bring a whole new level of interactivity and enjoyment to the hard core Black and White fan base.”

"In the unique world of Black & White, the cursor is shaped as a life-like hand. Adding real-time hand, finger and wrist movements to the game using the new P5™ controller will undoubtedly further enhance the illusion of reality and popularity of Black and White," said Peter Molyneux, managing director of Lionhead. “The P5™ will add a whole new level of excitement to the “Black and White” gaming experience.

The P5 is particularly well suited for gamers because the majority of today’s games have a 3D user interface. Action games, RPGs, first-person shooters, adventure games and sports games will all be enhanced by the ability to move easily and intuitively in 3D space.

About Black & White

Black & White, published by Electronic Arts, sets players in the role of a god, ruling over lands populated with villages of potential worshippers. Players must first win the belief of villagers by impressing them with miracles and godly acts. Later they will provide him with a personal pet; an emotional creature that has a life of its own but wants more than anything to please its master. The player may rule as a benevolent or malevolent god. Whichever path he chooses affects his creature, his subjects and even the landscape of his kingdom. Black & White won major gaming awards, including Best Original Game and Best of Show at E3, the major trade show of the interactive game industry.

Lionhead Studios was founded in 1997 by game designer Peter Molyneux, whose previous titles (including Populous, Syndicate, Magic Carpet, Theme Park, Dungeon Keeper) all received much critical acclaim for their innovative gameplay features and are now regarded as PC classics. The company has a staff of 107 and is based in Guildford, Surrey, England. Black & White is Lionhead's first release.

Essential Reality, LLC (“Essential Reality” or the “Company”) was founded with the goal of becoming a leader in the design, development and integration of revolutionary tracking and sensory technologies that can be used to provide the ultimate interface between man and machine. The Company plans on realizing this vision through multiple product offerings that primarily apply tracking and sensory technologies for different end-user applications that ultimately have diverse vertical market applications as well. With its initial product family - the P5ä - the Company is focusing on developing, manufacturing and distributing next-generation 3D peripherals for the PC/Mac and console gaming and professional user communities. The Company anticipates that the P5ä will revolutionize the way humans interact with computers and game consoles.

Essential Reality is headquartered at 49 West 27th Street, 7th Floor East, New York, NY 10001, phone 212-244-3200, fax: 212-244-9550.

Certain of the above statements contained in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the ``Exchange Act''). Actual results, events and circumstances (including future performance, results and trends) could differ materially from those set forth in such statements due to various factors, risks and uncertainties, including but not limited to, that the Company and Lionhead will reach a definitive agreement regarding the integration of the P5™ or, that if such agreement is executed, that the Company will be able to successfully integrate its P5™ technology into Lionhead’s Black & White product offerings and that such technology will gain acceptance with consumers, risks associated with the Company's future growth and operating results, the uncertainty associated with obtaining sufficient financing, the uncertainty of market acceptance of the Company's products, technological change, competitive factors and general economic conditions. The Company has no duty and undertakes no obligation to update such statements.