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Virtual Spectator & Animation Res. IP Cancellation

VIRTUAL SPECTATOR AND ANIMATION RESEARCH ANNOUNCE

CANCELLATION OF LICENCE OF INTELLECTUAL PROPERTY AGREEMENT

Auckland, 18 August 2003: Leading sports entertainment companies Virtual Spectator International Ltd and Animation Research Ltd (ARL) today announced they have reached agreement whereby ARL's exclusive licence to deliver television graphics under the Virtual Spectator brand will be cancelled and the existing contractual arrangements between them will be terminated.

The terms of the agreement, which are confidential, are satisfactory for both parties. The cancellation of the arrangements means both parties will be able to compete freely in the provision of both television and non-television products and services.

Under the agreement, Virtual Spectator International will have sole rights to use the Virtual Spectator brand for all media and all applications.

ENDS

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