LADYDRAGON.COM - ESSENTIAL REALITY ANNOUNCES SPECIALLY "P5™-ENABLED" GAME TITLES TO BE BUNDLED WITH ITS P5™ CONTROLLER RETAIL PACKAGE

Thursday September 26, 2002

ESSENTIAL REALITY ANNOUNCES SPECIALLY "P5™-ENABLED" GAME TITLES TO BE BUNDLED WITH ITS P5™ CONTROLLER RETAIL PACKAGE

Essential Reality, Inc. (NASDAQ: ESSR.OB), a developer and integrator of sensory and real-time remote tracking devices, announced today the computer game titles that will be featured with its P5™ glove product set to debut nationwide during the week of October 21, 2002.

Bundled with the P5™ glove will be the soon to be released "Hitman 2", a 1st and 3rd person shooter game published by Eidos Interactive (NASDAQ: EIDSY) "Tiger Hunt", a tank-driving warfare game and "Beachhead 2002", an arcade-style war game, both from Infogrames Inc. (NASDAQ:IFGM). The MSRP for the premier edition of the P5™, compatible with the PC and complete with the three P5-enabled game titles, will be $149.

"These fantastic new titles were created and specially enabled by some of the world’s top tier game publishers and developers," noted Martin Currie, Vice President of Business Development for Essential Reality. "The relationships we have forged with these companies reflect our commitment to seeking the creation of premium content that capitalizes on the P5’s ability to deliver a unique, fully integrated game playing experience. We feel these game titles add extraordinary value to the consumer when they buy the P5 package, and will demonstrate the unique power afforded by the P5’s capabilities."

Based on Essential Reality’s proprietary bend sensor and tracking technologies, the P5™ will be the first widely available, hand-worn controller to give users total intuitive interaction with 3-D environments.

While the P5™ can function in "mouse-mode" right out of the box, it is designed to deliver an enhanced experience that frees PC game players from the constraints of having to utilize complicated keyboard and mouse combinations. As a result, while the P5™ will work with almost any PC game, its true power is fully realized when used in concert with games that have been especially enabled for it.

Additional software "patches", which consumers can use to P5™-enable existing popular PC games, are expected to be available at the time of product release via our website (www.essentialreality.com). We also plan to introduce a number of additional patches and/or bundles over the next six months. This all comes in advance of a console-based edition of the P5, expected to be introduced during the second quarter of 2003.

With its initial product family - the P5™ - Essential Reality is focusing on developing, manufacturing and distributing next-generation 3-D peripherals for the PC/Mac, console gaming and professional user communities.

Essential Reality believes the P5ä will dramatically change the way humans interact with computers and game consoles. Color images of the P5™ can be seen at www.essentialreality.com/products.html

The P5™ uses Essential Reality’s proprietary bend sensor and tracking technologies to enable full interaction with a 3-D environment. A USB based product, the first generation P5™ is designed for compatibility with the Microsoft Windows 98, Windows ME and MS 2000 operating systems.

Additionally, Essential Reality expects the P5™ will be compatible with the Microsoft XP and the MAC OS operating system, as well as the popular game consoles.

About Essential Reality

Essential Reality was founded with the goal of becoming a leader in the design, development and integration of cutting edge tracking and sensory technologies that can be used to provide the ultimate interface between man and machine. Essential Reality seeks to realize this vision through multiple product offerings that primarily apply tracking and sensory technologies for different end-user applications and which ultimately have diverse vertical market applications as well.