ACCLAIM ENTERTAINMENT, LTD. AND BAM! ENTERTAINMENT, LTD. FORGE INTERNATIONAL PRODUCT DISTRIBUTION AGREEMENT.

Effective August 1, 2003, Company to Distribute Certain Forthcoming Titles from BAM!'s Portfolio Across All PAL Territories

GLEN COVE, NY, July 23, 2003 – Expanding the strength and breadth of its international product distribution network, Acclaim Entertainment, Ltd., a wholly owned subsidiary of Acclaim Entertainment, Inc. (NASDAQ.SC: AKLM), today announced that, effective August 1, 2003, it will distribute certain of BAM! Entertainment, Ltd.'s (a wholly owned subsidiary of BAM! Entertainment, Inc. - NASDAQ.SC: BFUN,) forthcoming computer and video game products within PAL territories, including Europe and Australia.

The distribution agreement covers a diverse product portfolio, including adventure, stealth action and puzzle games. The lineup includes Wallace & GromitTM in Project Zoo for the PlayStation®2 computer entertainment system, XboxTM, Nintendo GameCubeTM and PC, which is currently scheduled for release in September 2003. Further titles include Carmen SandiegoTM Secret of the Stolen Drum, Dexter's LaboratoryTM and The Powerpuff GirlsTM: Relish Rampage Pickled Edition.

"We are pleased to have entered into this agreement with BAM!, as their lineup will enhance our growth in the international territories, where the first release, Wallace and Gromit, is one of this year's most anticipated titles," said Rod Cousens, Chief Executive Officer for Acclaim. "BAM! has a wide range of products for this year and beyond, which will strengthen Acclaim's international distribution and benefit BAM! by helping to maximize the equity of their brands."

"We have long admired Acclaim's international distribution prowess," added Tony Williams, Managing Director for BAM! Entertainment. "We are now confident that BAM!'s key new products will reach the broadest possible audience."

Further product information:

Wallace & GromitTM in Project Zoo for PlayStation®2, XboxTM, Nintendo GameCubeTM and PC

In this single-player action adventure game, gamers take on the role of lovable dog, Gromit and attempt to liberate the zoo from the villainous clutches of the maniacal penguin, Feathers McGraw. While racing through seven massive action-packed levels, with 18 missions and dozens of mini games and hidden levels, players will master loads of special moves for Gromit such as back flips, somersaults, karate moves and even break-dancing. (Release currently scheduled for September 2003)

Carmen SandiegoTM Secret of the Stolen Drum for PlayStation®2 and Nintendo GameCubeTM

This award-winning license is making its way to the next-generation systems. Travelling to nine unique locations on five continents, players take on the role of the stealthy special agent, Cole Gannon, and use the hippest, latest spy gadgets in an effort to capture the elusive and infamous thief Carmen Sandiego. (Releases currently scheduled for fall 2003)

The Powerpuff GirlsTM: Relish Rampage Pickled Edition for Nintendo GameCubeTM

Mojo JojoTM is fed up with The Powerpuff Girls and has invented a scheme to become mayor and put all of Townsville under his mind control. As The Powerpuff Girls, players must defeat Mojo Jojo and annihilate the pickle aliens before the Townsville citizens become giant pickle-oids forever. Kids battle their way through several levels of entertaining missions and outrageous clashes in a 3-D Townsville world. The Pickled Edition features three fun-filled mini games and an extra mission this was not available on the PlayStation 2 version. (Release currently scheduled for fall 2003)

Dexter's LaboratoryTM for PlayStation®2 and Nintendo GameCubeTM

Dexter's Laboratory makes its first appearance on the PlayStation®2 and Nintendo GameCubeTM platforms in a robust robot rumble. Join Dexter and Dee Dee in this arena-based robot combat action game that offers a multitude of robots. Playing through the action-packed tournament modes with an arsenal of interesting weapons, the game will feature interactive and fully destructible environments and an exciting 2-player team-play mode. Dexter fans everywhere will be ready to rumble robot-style! (Releases currently scheduled for spring 2004)