HDFilms Partners With Epic Games To Power Upcoming 3D Animated Series “Chadam” With Unreal® Engine 3 For Studio 2.0, The Digital Production Division Of The Warner Bros. Television Group

(October 29, 2007 - Burbank, CA) – HDFilms, Inc., Studio 2.0, the digital production and distribution arm of the Warner Bros. Television Group, and Epic Games, Inc. announce a licensing agreement for use of Epic’s Unreal® Engine 3 in connection with the development of HDFilms’ new shortform 3D animated internet series, "Chadam," to be distributed by Studio 2.0. "Chadam," the brainchild of acclaimed artist Alex Pardee and character icon for the popular rock band The Used, uses his power of imagination to physically change his environment and, therefore, his world … to save it from evil. The series will find Chadam in a place of refuge, where he and others have retreated to plan their attack against Viceroy, a serial killer who threatens their way of life. Using Unreal Engine 3 to render original character models and landscapes designed by Alex Pardee, this action-horror-adventure story filled with self-discovery serves as an incubator for future expansion of the Chadam universe across all entertainment mediums. “As film, television and video games continue to evolve, the convergence of their associated tools, techniques and audiences are providing a fantastic opportunity for creative, cost-effective and compelling storytelling such as 'Chadam,'” said Jace Hall, Producer and President of HDFilms. “Utilizing the Unreal Engine 3 as part of our overall production process has enabled us to realize our full vision for the 3D series.” “Jace Hall’s access to leading-edge technology like the 3D animation engine of Epic is one of the reasons we are excited to be in business with his company HD Films,” said Craig Hunegs, Executive Vice President, Business Management, Warner Bros. Television Group. ”We look forward to working with Epic in what we hope is a long-term relationship. The "Chadam" project is a great example of Studio 2.0’s commitment to provide the most compelling and exciting user experience in online and wireless video.” "Being able to work with such an advanced technology to finally bring my abstract artwork into the 3D realm is like a chance for me to play Dr. Frankenstein, except our monster is Chadam, whose skin is my art, and whose heart is the Unreal Engine 3," said Alex Pardee, creator of "Chadam." “We’re very pleased that talented people like Alex Pardee and Jace Hall have chosen to use Unreal Engine 3 to help bring 'Chadam' to life and tell that deep story,” said Mark Rein, Vice President, Epic Games, Inc. “We’re especially excited because 'Chadam' is going to be a highly provocative artform expression that breaks new ground and stretches peoples’ imagination of what our Unreal Engine 3 technology can be used for.” About HDFilms HDFilms, Inc. is a production company with a first-look producing deal with Warner Bros. Studios devoted to creating film, television, videogame and online content spanning multiple mediums. Founded by Jason Hall, HDFilms works closely with engaging high-profile talent to develop projects utilizing the most cutting-edge techniques, equipment and formats. Most recently, HDFilms produced PVC-1, a film that debuted at the 2007 Cannes Film Festival as an official selection of the Directors’ Fortnight. Several additional projects across various mediums are currently in development including a motion picture “The Unforgettable” based on the universe of the hit videogame "Condemned: Criminal Origins," several television shows and an extensive lineup of serialized internet programming. Additional information about HD Films can be obtained at http://www.hdfilms.com. About Unreal Engine 3 The award-winning Unreal Engine is known for cutting-edge graphics and best-of-breed toolset. Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3’s new toolset is designed specifically to accelerate developers’ productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at http://www.unrealtechnology.com. About Epic Games Epic Games, Inc. based in Cary, NC and established in 1991, develops cutting-edge games and game engine technology for PC and console. The company has created multiple million-selling, award-winning titles in their Unreal series and their latest game, "Gears of War," broke sales records on Xbox 360 selling more than three million copies worldwide in the first ten weeks and awarded overall “Game of the Year for 2006” by the Academy of Interactive Arts & Sciences, Game Developers Choice Awards, GameSpot, GamePro and many others. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including, Console Game of the Year winner, “Tom Clancy’s Splinter Cell TM” by Ubi Soft; PC Gamer’s Game of the Year, “Deus Ex” from Ion Storm/Eidos; “America’s Army Special Forces,” by the United States Army, and “Harry Potter and the Sorcerer’s Stone” (PC) by Electronic Arts. Epic’s Unreal Engine 3 is the current holder, and three-time consecutive winner, of Game Developer magazine’s Front Line award for Best Game Engine. Epic Games was also awarded Studio of the Year at the 2006 Spike TV Video Game Awards and Developer of the Year by Official Xbox Magazine. Additional information about Epic can be obtained through Epic’s website at http://www.epicgames.com. Gears of War and Unreal are trademarks, or registered trademarks, of Epic Games, Inc. in the United States and other countries. The names of actual companies and products mentioned herein may be the trademarks of their respective owners. About Warner Bros. Television Group The Warner Bros. Television Group oversees the entire portfolio of Warner Bros. Entertainment's television businesses, including worldwide production, traditional and digital distribution and broadcasting. In the traditional television arena, WBTVG produces primetime, first-run, cable and animation series which are distributed worldwide by three category-leading distribution arms/operations. Warner Bros. is also a partner with CBS in The CW Television Network. The Warner Bros. Television Group is an innovative leader in developing new business models for the evolving television landscape, including ad-supported video-on-demand, broadband and wireless. WBTVG has digital distribution agreements in place with the broadcast networks (representing an industry first for a major studio with unaffiliated networks). The group recently formed Studio 2.0, a digital production venture producing original shortform programming for broadband and wireless and a digital media sales unit devoted specifically to multiplatform domestic advertiser sales for both broadband and wireless. # # #