BAM! ENTERTAINMENT’S WALLACE & GROMIT IN PROJECT ZOO TO BE DISPLAYED IN THE XBOX BOOTH AT THE ELECTRONIC ENTERTAINMENT EXPO

The Popular Clay Characters Make Their Public Debut At The Gaming Industry’s Largest Tradeshow

E3--Los Angeles, Calif. (May 13, 2003) -- BAM! Entertainment® (NASDAQ: BFUN) announced today that its video game Wallace & Gromit™ in Project Zoo will be on display in the Xbox booth at this year’s Electronic Entertainment Expo (E3), May 14-16, 2003.  Created by Aardman, the popular clay characters Wallace & Gromit have starred in several half-hour films that have won more than 45 international awards including two Oscars®.  Wallace & Gromit in Project Zoo is the first video game product to feature the popular British characters and is due to release on the Xbox® video game system from Microsoft this fall.

“Wallace & Gromit’s presence in the Xbox booth is something we’re very proud of,” said Ray Musci, Chief Executive Officer of BAM! Entertainment.  “We’re pleased to have Xbox help us get the word out about the game.”

Wallace & Gromit in Project Zoo is an action-adventure game where the player is on a mission to liberate the zoo from the evil clutches of the maniacal penguin, Feathers McGraw.  Gamers will play as the non-speaking yet charismatic dog, Gromit.  With Wallace in tow, building ingenious contraptions, Gromit will navigate six diverse and lush levels completing 24 missions and 12 mini-arcade games as he rescues baby zoo animals, solves puzzles and attempts to defeat Feathers the Penguin at his evil game. 

The Wallace & Gromit films have been dubbed into more than 20 languages with U.S. and U.K. video sales reaching over 10 million units.  Aardman recently released Cracking Contraptions, a series of ten one-minute Wallace & Gromit films and is set to begin production with DreamWorks on the first feature-length Wallace & Gromit movie slated for release in 2005.

For more information on Wallace & Gromit in Project Zoo for Xbox or any of BAM! Entertainment’s video games visit www.bam4fun.com.

About Aardman
Aardman is a privately owned character creation house founded 1972 by David Sproxton and Peter Lord. Nick Park joined Aardman in 1986 and is now a Director of the company. Integrity and innovation are at the heart of Aardman's work. Rejecting experiment for its own sake, Aardman thrives on the excitement of new discoveries in the creation of animated film. Aardman specializes in: animated shorts and series, animated feature films, commercial productions, and merchandising and licensing. Aardman's website is www.aardman.com.

About Xbox

Xbox (http://www.xbox.com/) is Microsoft’s future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in the continents of North America, Europe, Asia and Australia.

About BAM! Entertainment, Inc.

Founded in 1999 and based in San Jose, California, BAM! Entertainment, Inc. is a developer, publisher and marketer of interactive entertainment software worldwide.  The company develops, obtains, or licenses properties from a wide variety of sources, including global entertainment and media companies, and publishes software for video game systems, wireless devices, and personal computers.   The company’s common stock is publicly traded on NASDAQ under the symbol BFUN.  More information about BAM! and its products can be found at the company’s web site located at www.bam4fun.com.

This release contains statements that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These statements are based on current estimates and projections about BAM! Entertainment’s business, which are derived in part on assumptions of its management, and are not guarantees of BAM! Entertainment’s future performance, as such performance is difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors. Such factors include, but are not limited to, those described in BAM! Entertainment’s Annual Report on Form 10-K for the year ended June 30, 2002, and its Quarterly Report on Form 10-Q for the three-month period ended December 31, 2002, which are filed with the U.S. Securities and Exchange Commission.  Readers of this release are referred to those filings.  BAM! Entertainment does not intend to update any of these forward-looking statements after the date of this release.

BAM! Entertainment, BAM! and BAM!4 are trademarks of BAM! Entertainment, Inc. Xbox is a trademark of Microsoft Corporation.  All other trademarks are the property of their respective owners.