uWink’s Bear Shop Software Goes Gold

uWink, Inc. (OTC Bulletin Board: UWNK), today announced the release of an enhanced software package for its entertainment vending machine, "Bear Shop". Based on Linux, this latest release provides a brighter, more appealing multi-lingual user interface, superior stability, enhanced owner/operator functions, credit card acceptance and support for change making devices. In pre-production tests, strategies enabled by the new software increased retail sales by more than 30%. Many of the concepts embodied in the new release are a result of a newly-formed manufacturing and distribution alliance between uWink and Bell-Fruit Games, Ltd. of Nottingham, England.

Earlier this month, uWink announced a three-year manufacturing and exclusive distribution agreement with Bell-Fruit Games, Ltd., the leading designer and manufacturer of gaming and amusement machines in the United Kingdom. Under the terms of the agreement Bell Fruit will manufacture and exclusively distribute uWink’s patent-pending Bear Shop video vending machines in the UK, Germany, Italy and Spain. uWink is to receive per-unit royalties for each machine sold, and has retained exclusive rights to supply the bears, clothing and accessory "consumables" to Bell-Fruit Games’ customers, generating the potential for a substantial recurring revenue per machine.

The Bear Shop is a patent-pending, interactive vending machine that allows purchasers to dress and accessorize teddy bears through an entertaining touchscreen-controlled animation. Selected products are vended in unique, compressed packages, the contents of which suddenly spring to life when released. On the heels of a successful introduction into the U.S. market, Bell-Fruit introduced its version of the machine at the Amusement Trade Exhibition International in London last month and received an enthusiastic response from customers.

Ray Hibarger, Executive Vice President of uWink, commented, "We can hardly wait to harvest the impact this will have on our markets. Long-awaited language support will please Bell Fruit and our other overseas customers immensely, while enhanced incomes realized by the operator should translate into a major increase in machine and merchandise sales. The ’Bear Shop’ is now ready to assume its place in most every retail venue across the globe."

About uWink

uWink, Inc. is a technology-based entertainment company focused on the emerging medium of mass-market digital entertainment, including the launch of a hybrid class of ENcommerce (entertainment commerce) games, terminals and vending machines. uWink is led by Nolan Bushnell, who was the founder and former CEO of Atari Corporation and Chuck E Cheese’s Pizza Time Theater. At uWink, Mr. Bushnell has focused his skills on creating, developing and launching innovative consumer entertainment concepts with broad mass-market appeal. uWink continues to expand its installed base of entertainment platforms concurrent with the development of a range of new concepts that target fresh market opportunities and applications.

Forward Looking Statements

The statements contained in this press release that are not historical are forward-looking statements, including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. These statements, and other forward-looking statements, are not guarantees of future performance and involve risks and uncertainties including, but not limited to, the ability to react to quarterly fluctuations in results; raise working capital and secure other financing; respond to competition and rapidly changing technology; deal with market and stock price fluctuations; and other risks as more fully described in uWink’s periodic filings with the Securities and Exchange Commission.