TULGA GAMES LLC, COMPLETES PURCHASE OF ASSETS OF ARTIFACT ENTERTAINMENT

TEMPE, AZ –– 25 January, 2005 –– Tulga Games, LLC announced today that it has completed the purchase of the assets of Artifact Entertainment.

"We received approval by the U.S. Bankruptcy Court in mid –December to move ahead with the purchase, then proceeded to formally close the purchase," said Mr. Chris Tulumello, founding manager of Tulga Games. "I've been saying for months now that I'm both a fan of the game and a strong advocate of the underlying technology. This purchase dramatically increases the value of Tulga Games and send a message of stability and longevity to current and future Horizons customers," continued Mr. Tulumello.

Members of Artifact Entertainment's development, technology and creative teams have been asked to join the new Tulga Games team and "the response to these offers has been overwhelmingly positive," says Mr. Tulumello.

"We are commencing a five-year strategic planning process, part of which is reviewing other titles and other intellectual properties that do not have a massive multiplayer version. We do this while progressing toward our main goal of increasing the stability of the Horizons: Empire of Istaria customer base and augmenting the content and storyline of the game. We also want to enhance the viability of our current research and development teams. I know that our technology has very unique features, and we encourage others to license it.", said Mr. Tulumello.

Tulga Games also announced that it has received additional funding from C.P. Baker & Company, Ltd. C.P. Baker is a Boston-based investment company. Its principal, Mr. Chris Baker, has long history investing with Internet based technology companies. The funding will be used to fuel continued marketing efforts, ongoing technology, and game development. "Obviously, everyone at Tulga is very pleased that others consider our company and product line viable and worthy of investment, "said Mr. Tulumello, "Mr. Baker's history and understanding of this market is also testament to his interest in what we have to offer."

"Tulga Games, through their acquisition of the valuable assets of Artifact Entertainment, is poised for future growth, our investment recognizes the value of the company as a whole and what it offers to the market," said Christopher P. Baker, chairman of the Board, C.P. Baker & Company.