Titus Interactive S.A. has made a US$10 million investment in Interplay on Friday, purchasing roughly 2.5 million shares of common stock. Titus, based in France, is one of Europe's leading software developers.

　　Interplay announced that it has negotiated a line of credit extension through January 1, 2000. Titus also announced that Universal Studios, a minor shareholder in Interplay, has granted Titus the option of purchasing Universal's Interplay stock .

　　"These two transactions improved our financial position and should alleviate cash flow and short-term debt issues," said Brian Fargo, Interplay chairman and CEO. "If you combine these events, with the momentum built through the sales of Baldur's Gate and our anticipated release, including Descent 3, Giants and Kingpin among others, we believe we are on track to see significant improvement in 1999. The strategic investment was done in anticipation of our two companies exploring broader opportunities, including possible business combinations. We have agreed to negotiate these opportunities exclusively over the next ninety days. The first deal we anticipate would allow Interplay to distribute Titus' PC software products in North America."

　　"The quality of Interplay's product line for 1999 is superb," said Herve Caen, Titus chairman and CEO. "This investment for Titus will allow us to leverage our respective strengths to the advantage of both companies."