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New Device Connects the PC Jukebox to the Home Stereo, and Allows Consumers to Access Digital Music Libraries or Internet Radio From Any Room in the House

A Receiver, Internet Radio, and CD player in One

Based on iObjects' Dadio(TM) and Dharma(TM) digital audio technology, Darwin is the first receiver of its kind to combine a multi-codec CD player with an Internet Radio, while providing access to content stored on a desktop PC jukebox or local network. Access your PC's digital music library, receive streaming Internet Radio, or encode a new CD into your collection from any room in your home using Darwin.

No Hassle Network Solution

With Ethernet connectivity and Universal Plug and Play (UPnP) support, Darwin automatically recognizes any shared music files or folders on the PC or network. Connect multiple units to a network, and a central PC can be used to control playback on each device.

iObjects Inside

Marking the first digital audio device to be fully designed, branded and released on the consumer market by Interactive Objects, the Darwin digital audio receiver is the complete solution for accessing digital audio from any room in the house.

``Digital music has tremendous potential, but first the hardware must evolve,'' said Dennis Tevlin, President and CEO of Interactive Objects. ``Darwin represents the natural convergence of several devices, providing a total audio management solution in one low-cost device.''

Developed in collaboration with Microsoft, the device supports Windows Media and offers advanced networking abilities and Windows XP interactivity.

``Interactive Objects has been quick to recognize the advantages that connected homes offer consumers,'' said Dave Fester, general manager of marketing for the Digital Media Division, Microsoft Corp. ``By capitalizing on Windows Media Format, UPnP and Windows interoperability, devices like Darwin will make it easy for people to experience high-quality digital media anywhere in the home.''

Pricing and Availability

Darwin is scheduled for availability in the 2nd quarter of 2001, and will retail for $299. Darwin is currently available to manufacturers looking to brand, manufacture and distribute custom configurations of the device.

About Interactive Objects, Inc.

Interactive Objects (www.iobjects.com) is a leading designer of embedded software and hardware solutions for digital audio appliances. iObjects is the creator of the Dadio(TM) digital audio operating system and the Dharma(TM) digital audio reference design. iObjects provides software engineering, hardware design, and manufacturing services, and offers licenses of its proprietary Dadio operating system and Dharma reference design to leading consumer electronics, PC manufacturers, and computer software companies.

Interactive Objects is headquartered at 12600 SE 38th, Suite 150, Bellevue, WA 98006, USA. Interactive Objects is listed on the OTC.BB under the symbol ``OBJX'' and on the ``Third Segment'' of the Frankfurt Stock Exchange under the symbol ``IOX'' and German securities code WKN: 913011.

Certain information included in this communication contains statements that are forward-looking, such as statements relating to the future anticipated direction of the high technology industry, plans for future expansion, various business development activities, planned capital expenditures, future funding sources, anticipated sales growth and potential contracts. These forward statements are subject to a number of known and unknown risks and uncertainties that could cause actual operations or results to differ materially from those anticipated. These risks include, among others, risks associated with unproven sales of the Company's products, risks associated with the software development process and risks related to the transition to a new management team. Certain of these risks and other risks are described in the Company's Registration Statement on Form SB-2 and Form 10-KSB filed with the Securities and Exchange Commission (SEC). The registration statement is available from the SEC's Web site at http://www.sec.gov/

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

Contact:

     Interactive Objects
     Tony Dirksen, 425/653-5505 (Investor Relations)
     tonyd@iobjects.com
     or
     Gentry Lange, 425/653-5505 (Press)
     gentry@iobjects.com