Netter Digital Entertainment Doubles Staff To HandleIncrease in Production Projects.

NORTH HOLLYWOOD, Calif.--(BUSINESS WIRE)--July 10, 1998--Netter Digital Entertainment Inc. (NASDAQ: NETT) announced today that due to several major production projects the firm has won recently, the company has doubled the staff of its Netter Digital Technologies division to 65 within the past

Recently the company announced three major projects. These include an agreement to produce the computer graphics for an electronics game for a major company in this field; co-production on a new 3-D animated children's television series: Voltron: The Third Dimension, which will have 26 episodes; and a prime time television series, Crusade, developed in association with J. Michael Straczynski's Synthetic Worlds, Ltd. It will air on the TNT network in January 1999.

Netter Digital Entertainment, Inc. is engaged in the acquisition, development and production of television series, made for television movies, documentaries, theatrical motion pictures and multimedia products. Its best-known production is the Babylon 5 television series, which it produced in association with J. Michael Straczynski's Synthetic Worlds, Ltd. under Babylonian Productions. The company recently announced a new series entitled Crusade, which is a follow up to Babylon 5. This new series will also air on the TNT network.

Netter Digital Technologies, a division of Netter Digital Entertainment, provides visual effects and computer animation to outside clients such as Voltron: the Third Dimension, as well as its own television series, Babylon 5, and Crusade, and an upcoming electronic game for a major entertainment company.

The company's wholly owned subsidiary, Videssence Inc.,provides high tech media lighting products for the entertainment, electronic news and video conferencing/distant learning markets.

CONTACT: Martin E. Janis & Co. Public Relations

Hal Schweig, 312/943-1100