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MAINFRAME ENTERTAINMENT NAMES LOU NOVAK CHIEF EXECUTIVE OFFICER

Former President / C.E.O. Ian Pearson Assumes New Title as Chief Creative Officer

(Vancouver, Canada, June 5, 2001) - Mainframe Entertainment, Inc. (MFE:TSE) Board of Directors announced today the appointment of Lou Novak to the position of Chief Executive Officer. Novak, who has held senior management positions at Galoob, Mattel and Coleco, assumes this position effective immediately at the award winning computer animation studio. Additionally, Ian Pearson, Mainframe's former C.E.O. will assume the newly created position of Chief Creative Officer.

In his new role, Novak will provide strategic direction to the Company as well as oversee all business and operational aspects of Mainframe.

"Lou has contributed greatly to the rapid growth and achievements of several leading companies," Pearson said. "His years of experience, coupled with his outstanding leadership capabilities and strong business sense make him ideally suited to propel Mainframe to the next level of success. By creating this new management position, it will free me up to work more on the creative side of business. Creating unique and cutting edge animation has always been my first love and I will now have more time to devote to the creative process."

Said Novak, "I am very excited to be joining one of the entertainment industries leading organizations in computer animation. I plan to work with Mainframe's experienced creative team to develop and market new properties, as well as pioneer new techniques in computer animation. These efforts, in conjunction with a new aggressive effort to move into the licensing and merchandising arena with a newly created consumer products division, will launch Mainframe to a new level of prosperity."

Prior to joining Mainframe, Novak served as President and C.E.O of Videosnap, a streaming media application service provider based in New York. Previously, he spent ten years at Galoob Toys, Inc., in various executive management positions before advancing to Executive Vice President and C.O.O. where he was successful in the strategic repositioning and returning the company to profitability. Before joining Galoob Toys, Novak held key senior executive positions at such companies as Coleco Industries, All American Gourmet Company and Mattel. While at Mattel, Inc., he served as Senior Vice President, Planning and played a major role in the restructuring and refinancing activities that resulted in the company's redirecting its focus to its core toy business and eventually returning to profitability.

Pearson continued, "I believe this organizational change will enhance the firm's production capabilities and will bring Mainframe more into alignment with the needs of the industry, as well as the company's shareholders."

Pearson founded Mainframe Entertainment eight years ago with partners Phil Mitchell and Gavin Blair, and is responsible for the development and production of the world's first computer animated TV series, ReBoot® . To date, Pearson and his team have produced six computer animated TV series, which have aired in over 70 countries around the world and have won many prestigious awards. Mainframe Entertainment Inc. is the world's preeminent producer of computer animation, and is expanding into long-form CGI for feature films and interactive entertainment. The company is best known as the pioneer of computer animated television series with the groundbreaking series ReBoot® . Mainframe has produced over 150 hours of computer animation. Since 1994 the company has had six computer animated television series on air in the North American market and is currently in production on 26 half-hour episodes of Action Man™ , and the all-new Heavy Gear ™ television series. Additionally, the studio is in production on a large-format stereoscopic feature film based on Gulliver's Travels for release in IMAX 3D theatres. Founded in 1993, the company employs over 360 artists, animators, technicians and production personnel, and has won many prestigious awards for its creative and technical innovations, including an induction into the Smithsonian Institute.