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THE PALACE VIRTUAL WORLD CHAT SOFTWARE
WINS AWARD FOR ONLINE MARKETING EXCELLENCE

(Los Angeles, California. May 21, 1997) The Palace, Inc., creator of the popular virtual world chat software (http://www.thepalace.com), was awarded a coveted prize for Internet Marketing Excellence at the 3rd annual Tenagra Awards this week in Houston. The Palace marketing campaign is handled by InterActive Agency (http://www.iagency.com), the Los Angeles-based online advertising, marketing and public relations company.

The Tenagra Awards (http://awards.tenagra.com/) recognize substantive achievements and contributions by organizations and individuals to the field of Internet Marketing, Public Relations, and Advertising. Also honored today were Cisco Systems, Dell Computer, 24 Hours in Cyberspace, Eastman Kodak, The Link Exchange, Amazon.com and Steven O'Keefe.

"We are gratified to have our efforts on behalf of The Palace recognized by the industry," said InterActive Agency president Tony Winders. "Focused marketing of the kind we specialize in is practically guaranteed to get results." The InterActive Agency roster of clients also includes Warner Bros. Online, Countrywide Home Loans and the Writers Guild of America.

"Through the results of their public relations campaign," reads the award presentation, "The Palace achieved wide distribution of their servers, wide coverage in the press and built impressive partnerships with large organizations." The award, which was given for "Use of Internet marketing to achieve significant public relations success" was shared by "24 Hours in Cyberspace" and the Eastman Kodak Company.

"This year's winners are outstanding examples of the benefits of integrating the Internet into a business process," says Cliff Kurtzman, President and CEO of Tenagra. "Each of the three years we have done these awards the committee has observed a clear trend towards companies treating Internet marketing less as an 'experiment' and more as a business necessity. Each success makes our industry more credible, and recognition of these successes ends up strengthening the industry as a whole."

The Awards were given in four categories, covering Internet developments in 1996 Use of Internet marketing to achieve significant financial return; Use of Internet marketing to achieve significant public relations success; Use of successful strategies for Internet advertising; and Individual contribution that facilitates Internet marketing.

Founded in May 1995, InterActive Agency, Inc. is a full-service agency providing its clients with a dynamic mix of traditional and online marketing services, including public relations, promotion and advertising. "The agency has developed an innovative approach to marketing and communications reflective of the changes in the global media marketplace," according to IAgency chairman Alan Wallace. "Harnessing the potential of the Internet, the company pioneered online marketing." Wallace says "the agency's Internet marketing ingenuity gives clients a strategic advantage that exceeds the capabilities of conventional agencies."

"InterActive Agency works closely with clients to identify goals and to develop a primary message and media strategy to reach targeted audiences," adds Tony Winders. "The agency is able to deliver tangible, measurable results. Campaigns are designed to drive traffic to Web sites, increase downloads, build online brand awareness, initiate product inquiries and transactions, and build customer loyalty."

InterActive Agency's current list of clients, includes Warner Bros. Online, HBO, Countrywide Home Loans, REALTOR.COM, the Writers Guild of America, Fuseworks, Star Telecom, Inc., The Palace, Inc. and Cathay Pacific Airways.

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