Beam signs A$2.5 million game development contract

Beam International Limited (ASX: BEM) today announced the signing of a major development agreement with a US game publishing company for a computer game title to be released in 1999. The development budget for the title is in excess of A$ 2.5 million. Development projects of this nature provide regular cashflow based on completed milestones and generate profits. Royalty payments can also deliver additional benefits from the sale of successful titles. Beam International Limited develops computer games for international publishing companies on a contractual basis, as well as developing and publishing games under the Melbourne House imprint. "We are delighted to be associated with this game", commented Mr Adam Lancman, Beam International Limited's Managing Director. "Our aim is to concentrate on development of major titles which will receive strong promotional support from their publishers and thus provide an upside potential for Beam. With these relationships, we can be assured that our titles will be strongly promoted throughout the world." The contract is between Beam and a publicly listed US games publishing company. Due to commercial confidentiality provisions in the contract, no specific information about the title or the publishing company can be disclosed at this stage.

Development has commenced and the initial payments received. The remaining payments will be received by Beam over the course of development as milestones are achieved. This large contract demonstrates the confidence that major publishers have in the ability of Beam's development capabilities. It confirms that Beam is one of the foremost games developers in the world, being able to deliver superior products through its unique development environment and technologies. The new game is in the genre of simulation games, and previous titles in this genre by the US publishing company have been international best-sellers, selling in excess of 500,000 units each. These products retail in Australia for A$70 - $80. The development of this product is not due to be completed until July 1999, with release in time for the peak-selling Xmas 1999 season. "We are very excited to be working on this title," commented Mr. David Giles, Beam's Executive Producer. "The title relies heavily on Beam's proprietary 3-D technology, and it is this technology which enabled us to win such a major contract against international opposition."

Beam International Limited is Australia's only multimedia development company listed on the Australian Stock Exchange (and trades under the symbol BEM). More information about Beam International Limited, Melbourne House and Beam Software can be found on the Web site http://www.beam.com.au.
For further information, please contact Miss Kirsten Beamish on:
tel.: +61 (0)3 9866.8300, ext, 202,
by fax on +61 (0)3 9866.8674
or by email at kirstenb@beam.com.au.
Press release:- Wednesday April 29, 1998