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."