FOR IMMEDIATE RELEASE

COURT APPROVES PURCHASE OF THE ASSESTS OF ARTIFACT ENTERTAINMENT BY TULGA GAMES LLC

December 16, 2004 Phoenix, AZ – The Honorable Sarah Curley, Chief Judge of the U.S. Bankruptcy Court, District of Arizona yesterday approved the Tulga Games LLC’s bid to purchase the assets of Artifact Entertainment Inc. Artifact Entertainment is the developer of the award-winning massively multiplayer online role-playing game (MMORPG) Horizons: Empire of Istaria, Tulga Games, LLC is a publisher/developer of digital entertainment.

Tulga Games’ Managing Member, Chris Tulumello, said, “I am very pleased that Tulga Games’ bid was accepted and approved by the court. Our bid provided a viable course to continue the Horizons franchise while developing new Massively Multiplayer Online Game titles. Very few organizations can boast a working technology that allows many concurrent users simultaneous gameplay in a persistent world. I believe very strongly in what the technology architects at Artifact have accomplished.” Continued Mr. Tulumello, “Working with the team to plot a course for the future for both the game Horizons and the company is a high priority. All the assets included in this sale are very powerful and very valuable. The fan base and subscribers to Horizons have been very vocal that the indecision caused by Artifact’s filing of voluntary bankruptcy was a cause for concern; they have wanted to know what the future holds for them, I can see with great clarity that the future looks very bright. I, along with all the resources of Tulga Games, are committed to the long term story arc of this wonderful product.”

Artifact Entertainment’s CEO and Creative Director, David Bowman, said, “Obviously we are extremely pleased with the courts decision that allows Tulga Games to complete the purchase of the assets of Artifact Entertainment. Among the many benefits of this purchase is the ability of the flagship product Horizons: Empire of Istaria to grow and prosper. This also allows Tulga the opportunity to develop new product based on the Evolution Engine, attract new investment and move the company forward.”

About Artifact Entertainment
Artifact Entertainment, founded in November 1999, is a privately held software development company currently focused on the subscription-based massively multiplayer online game, “Horizons”. Its mission is to provide subscription-based quality online entertainment experiences using superior technology, proven design methods, broad market appeal, customer satisfaction and the highest quality staff. To find out more about Artifact Entertainment, visit www.artifact-entertainment.com.

About Tulga Games, LLC
Tulga Games LLC is a privately held digital game publisher and developer. Tulga Games LLC has a mission of providing individuals and families with quality digital entertainment experiences. www.tulgagames.com 

About “Horizons”
Developed by Artifact Entertainment and originally published by Atari, the MMPORPG Horizons: Empire of Istaria launched in December 2003 and currently boasts an avid following of tens-of-thousands of players worldwide. The ability to dynamically add content coupled with a first-rate crafting system has allowed “Horizons’” fans to experience episodic content and the ultimate in massive battles. Players are also able to take on 10 fantasy roles ranging from dragon and elf to fiend and half-giant while meeting friends that circle the globe. For more information on “Horizons”, visit www.istaria.com.


###