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Atom Entertainment Opens AtomFilms Studio

Develop Original Online Video Content (January 23, 2006)

Atom Entertainment(TM), the broadband entertainment pioneer, announced today the opening of "AtomFilms(R) Studio," a new program which invests in independent producers to create broadband entertainment for today's connected viewers. AtomFilms Studio announced six development projects today and plans to produce dozens more projects during the course of the year. New shorts from AtomFilms Studio will be distributed beginning this spring on the award-winning AtomFilms website (www.atomfilms.com) and its online and mobile entertainment partners.

A pioneer in the online video category since 1999, AtomFilms has reviewed thousands of short film and animation titles, gaining a deep understanding of industry talent, and the habits and demands of online viewers. This rare perspective has enabled AtomFilms to partner with the entertainment industry's most innovative and entertaining talent, JibJab, Aardman, Jason Reitman, Joe Cartoon, and more, to acquire and develop many of the Internet's biggest hits, building a monthly audience of more than 5 million consumers.

The Q1 Programming Line-Up

The AtomFilms Studio has selected a diverse mix of entertainment shorts in various genres to kick off its exclusive 2006 lineup. The projects were selected based on their potential to deliver quick, shareable, instantly gratifying entertainment experiences to consumers in online and mobile environments.

AtomFilms Studio projects for Q1 include:
--   CASUAL ENCOUNTERS, from Mike Mohan
A six episode reality series inspired by Craigslist's Casual
Encounters section.
--   WANNA SEE MY BUG, from Efram Potelle and Kyle Rankin
A special effects-driven short by the winners of Project Greenlight
2.
--   NEW BOOBS, from Matthew Bonifacio
A comedy by Sundance alum (LBS). A young woman, obsessed with her
flat chest and her handsome neighbor, contemplates breast implants
to win his affection.
--   DOG YEARS CHAPTER 2, from Sam Hearn and Richard Penfold
The sequel to an international award-winner follows the continuing
adventures of Ben and his owner.
--   2 Projects from PES, GAME OVER and CEMETARY SEX
The award-winning filmmaker brings a stop-motion homage to old
school videogames and a unique sex story.
    The right broadband content for the digital consumerAs a major player in the early days of broadband entertainment, AtomFilms has continued to lead the charge for developing and distributing the best quality entertainment to meet the needs of content creators, consumers and advertisers.


Previous successes include:
--   JibJab (Gregg and Evan Spiridellis)
Their 2004 hit This Land, available exclusively at AtomFilms.com and
JibJab.com in 2004 and 2005, generated over 70 million online plays.
--   Jason Reitman, creator of several hit AtomFilms shorts, went on to
direct the star-studded feature, "Thank You For Smoking," which
premiered at the Toronto Film Festival in September 2005 and will be
released by Fox Searchlight in 2006.
--   Aardman Animation, creator of Wallace & Gromit, premiered its Angry
Kid series online with AtomFilms in 2000. Since then, the series has
been viewed more than 20 million times online, and been distributed
on television networks including the UK's Channel 4.
--   Keith Thomson created over a dozen animations for AtomFilms. His
pop-starlet spoof, Annibelle Scoops, was optioned by MTV and a pilot
is in development.



About Atom Entertainment, Inc.
A marketer and distributor of broadband entertainment, Atom Entertainment (formerly AtomShockwave, Corp.) was formed by the 2001 merger of Internet pioneers Shockwave.com and AtomFilms. Shockwave.com offers a broad selection of online games that attract players of all ages. AtomFilms provides on- demand viewing of more than 1,000 world-class film and animation titles ranging from 1 to 30 minutes in length. In 2005, Atom Entertainment acquired the online games portal AddictingGames. Shortly after, the online video directory AddictingClips was developed offering consumers one destination for the best clips across the Web.
The company operates on an innovative, multi-tiered business model featuring advertising, sponsorship, e-commerce, subscription, and distribution revenue streams. Collectively, more than 30 million entertainment fans visit the Atom Entertainment sites each month.


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