Bethesda Softworks to Develop and Publish Fallout 3

July 12, 2004 (Rockville, MD) - Bethesda Softworks® announced today that it
will develop and publish Fallout® 3 -- a sequel to the highly popular
Fallout® role-playing game franchise. Bethesda licensed the rights to the
Fallout® franchise from Interplay Entertainment Corp. (OTC Bulletin Board:
IPLY) in a deal that awards Bethesda exclusive worldwide rights to the
Fallout® franchise on the PC, home consoles, handhelds, and other media,
with the rights to develop and publish additional sequels.

"We're extremely excited about this opportunity and what it means both for
Bethesda and for Fallout fans around the world," said Vlatko Andonov,
president of Bethesda Softworks. "Fallout is one of the great RPG
franchises. Millions of Fallout games have been sold worldwide, and fans
have been eagerly awaiting the release of a Fallout 3 title. Bethesda's
proven expertise in this genre, building on our experience and the
tremendous success we have enjoyed with our cutting-edge Elder Scrolls®
series, will enable us to create the next chapter of Fallout that is worthy
of the franchise."

Originally released in 1997, Fallout places a player in the role of a
Vault-dweller, who ventures from his secluded, underground survival Vault
into a post-apocalyptic world of mutants, radiation, gangs and violence. The
game has been widely hailed as one of the outstanding role-playing games and
video games of all time with its unique gameplay, style, and setting.

Commenting on this development, Interplay Chairman and Chief Executive
Officer Herve Caen said, "This is a good agreement for both companies and
for gamers. Although several parties had a high level of interest in
licensing Fallout, we are most impressed by Bethesda's execution of
role-playing titles. Bethesda is an ideal steward of the Fallout franchise."

Fallout 3 will be developed by Bethesda along with the next chapter of The
Elder Scrolls, both under the direction of Todd Howard, executive producer
of The Elder Scrolls. The Elder Scrolls III: Morrowind® won every national
and international award of note in 2002, including Game of the Year and RPG
of the Year, and is one of the best-selling games ever released on Xbox.

"We are overjoyed," said Howard. "Fallout is one of my favorite games, and
we plan to develop a visually stunning and original game for Fallout 3 with
all the hallmarks of a great RPG: player choice, engaging story, and
non-linearity."

Future announcements about the release of Fallout 3 will be made as work on
the title progresses.