Namco Cybertainment to Equip Skyline's XS New York,
The World's Most Comprehensive Interactive Virtual Game Arena
NEW YORK--(BUSINESS WIRE)--December 3, 1996

Skyline's Namco agreement to elevate industry's hottest interactive games to high-level, non-arcade environment for first time.

In a deal that will take video gaming out of the arcade and into one of the world's most prestigious, high-end entertainment environments, Skyline Entertainment Inc. (NASDAQ: SKYL, SKYLU), the company behind the soon-to-launch XS New York in Times Square, today announced an agreement with Namco Cybertainment, a subsidiary of Namco Inc., one of the industry's top interactive manufacturers, to equip XS New York with its state-of-the-art equipment.

Under the terms of the three-year agreement, XS New York will be equipped with more than $500,000 of Namco's state-of-the-art competitive games -- including its hot Alpine Racer and Tokyo Wars units -- making XS New York the most comprehensive virtual reality center in the world. The agreement provides Namco, a company known for top-of-the-line games that often have an extreme sports theme, with the unique opportunity to showcase its quality products in a non-arcade environment, providing a reach into the usually unattainable adult market.

According to Thomas Savvides, vice president of business development at Namco Cybertainment, "XS New York is going to be the most prominent virtual reality center in the country. It appeals to everyone, kids and adults alike. It is crucial for any company in this industry that wants to be perceived as top of the line to be showcased at XS New York."

XS New York, slated to open in December in the new Times Square, will feature cutting edge virtual reality machines, computer games and internet access stations in a three-story, 20,000-square-foot heavily themed, fun-filled environment. This high-energy, interactive competition playground allows tourists and residents alike to explore and have fun in a variety of different "Cyber Worlds."

"We are extremely pleased to partner with a company as prominent as Namco," says Zalman Silber, president and CEO of Skyline Multimedia Entertainment. "With their games, users become the action -- they are fully immersed in the environment. This partnership is yet another component of our commitment to making XS New York the most technologically advanced, cutting-edge, family entertainment center in the world."

Skyline Multimedia Entertainment is a holding company engaged in the development and operation of state-of-the-art entertainment attractions at locations worldwide. New York Skyline Inc., a wholly owned subsidiary, owns and operates NEW YORK SKYRIDE, the first simulator attraction in the metropolitan New York area. The New York NEW YORK SKYRIDE is located in the Empire State Building, New York's number one tourist attraction. Skyline Virtual Reality Inc., a wholly owned subsidiary, owns and operates XS New York, New York's first and only Virtual Reality Entertainment Center, located in the heart of Times Square.

CONTACT: Dan Klores Associates, Inc.
Public Relations - Tel. (212) 685-4300
Contact: Rob Bailey (robailey@dkanews.com)
Brian Faw or Jeanne Meyer (jmeyer@dkanews.com)

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