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Hasbro Titles To Target Mainstream Audiences Through NUON-Enhanced DVD Players

``We believe new audiences will be attracted to electronic gaming through the NUON-enhanced DVD players,'' said John Hurlbut, general manager, Hasbro Interactive, ``and Hasbro's properties are ones that are easy to pick-up and familiar to play. The appeal of NUON to the non-traditional video gamer fits well with our all-family strategy, and our alliance with VM Labs allows us to bring our interactive products to a broader audience than ever before.''

Hasbro and VM Labs are developing a number of NUON titles from Hasbro's stable of well-known properties, the first of which will be the classic arcade game Tempest and two board game favorites' The Game of Life and Monopoly. These first titles are expected to ship this year, with additional Hasbro titles to be made available on the NUON platform in future.

``Hasbro has always been the ideal software partner for the launch of NUON,'' said Bill Rehbock, vice president of third party development, VM Labs. ``They are a proven leader in family entertainment and leisure activities and have an exceptional understanding of our target audience, the mainstream gamer.''

DVD International, as part of a separate agreement, will distribute the initial Hasbro titles. ``The relationship capitalizes on the strengths of each of the partners--Hasbro's heritage of true family entertainment, VM Labs expertise to create NUON renditions of the properties, and DVD International's knowledge of the DVD distribution channel,'' according to Mr. Rehbock. VM Labs is dedicated to bringing interactive entertainment, including games, movies, music and the Internet to the living room through its NUON technology, embedded in digital video devices such as DVD players and set-top boxes.

About NUON

NUON has the speed and power to transform a DVD player into an interactive fun-center that will entertain the whole family. NUON enhanced digital video devices bring the television to life with interactivity in the form of games, educational software, interactive movie content and more. Future NUON enhanced features include Internet connectivity and Web-enabled movie experiences. The NUON media processing technology replaces the MPEG decoder chip currently found in digital video products. Analysts predict that digital video will supersede the current analog method over the next few years and NUON is poised to become the new standard for interactive digital home entertainment. VM Labs, Inc. is based in Mountain View, CA. For more information and to download artwork, visit http://www.nuon-tech.com.

NUON(TM) is a trademark of VM Labs, Inc.

About Hasbro Interactive

Hasbro Interactive, Inc. is a global interactive entertainment industry leader, innovating new ways to play and developing, publishing and distributing the highest quality interactive games and lifestyle products for a full range of genres and platforms. A subsidiary of Hasbro, Inc. (NYSE:HAS - news), Hasbro Interactive has offices in the U.S., U.K., Canada, Germany and Australia, and internal development studios in the U.S. and U.K. For further information, visit Hasbro Interactive's Web site at http://www.hasbro-interactive.com.

Contact:

     Bender/Helper Impact for VM Labs
     Linda Thurmond-Meyers, 415/391-2994
     linda_meyers@bhimpact.com
      or
     Christine Card, 562/856-8299
     christine_card@bhimpact.com
      or
     Hasbro Interactive
     Laura Tomasetti, 978/921-3788
     ltomasetti@hasbro.com
      or
     Manning, Selvage & Lee for Hasbro Interactive
     Alan Lewis, 212/213-7100
     allewis@mslpr.com