CBS Makes Investment in Electric Sheep

NEW YORK, February 26: CBS Corporation has made an
investment in the virtual world content developer The Electric Sheep Company as
part of a strategic alliance announced between the two companies today.

The alliance is intended to help CBS further interact with
its audiences via virtual communities, and to generate additional advertising
revenues. As part of the partnership, CBS Corporation participated in The
Electric Sheep Company’s latest financing which raised more than $7 million
from existing investors including Gladwyne Partners.

The deal follows Electric Sheep developing and launching The
L-Word in Second Life, an application for
the hit Showtime Networks show in the Second Life virtual community. The
Electric Sheep Company also produced a promotion for CBS’s Two and
Half Men in Second Life that aired in a
Super Bowl pre-game spot earlier this month.

"As many top brands are already discovering, virtual
worlds present an enormous opportunity to build communities and create new
advertising opportunities," said Sibley Verbeck, the CEO of The Electric
Sheep Company. "Virtual worlds are the first successful incarnation of
interactive television. They provide a 3-D, immersive environment in which fans
can meet each other, interact with characters or cast members, and generate
their own content. This partnership will allow us to explore new potential for
CBS' content, and that of all our current and future customers, in the virtual
space."

Quincy Smith, the president of CBS Interactive, added:
"Virtual Worlds represent next generation communication platforms. The
Electric Sheep Company is enabling CBS’s content and community to have early
presence across many of these new worlds. We look forward to learning more
about our audiences with the help of Sibley and his team."