Entertainment Arts Inc. Restructures

June 17, 2005 -- Entertainment Arts, Inc. (Pink Sheets: ETAI) today announced that the holders of the majority of its common shares have approved a proposal for a reverse stock split of its common shares in a ratio of 1 for 14 to be effective as of close of business on April 26, 2005.

In addition, the Majority Shareholders elected Eric Brown, Yasuo Nakamura, Raymond Williams and Irving Brown as Directors of the Company. Eric Brown and Yasuo Nakamura have been directors since 2001. Raymond Williams was President of Washington Printing Supplies, a mid-Atlantic graphic arts distributor, and is currently President of Priority Service Group, based in Virginia. Irving Brown (retired) was formerly Vice President of Frank B. Hall, Inc., an insurance broker with both domestic and international offices.

Daniel Maffeo has joined the company as a vice president of Entertainment Arts Inc. Dan had a 20-year career with Fuji Film USA. His positions included VP&GM and Executive VP.                             

The company also announced that its subsidiary, HolograFX, Inc., has received $500,000 in secured financing from an entity controlled by certain directors and officers of the company.

About Entertainment Arts, Inc.
Entertainment Art, Inc.’s (www.entertainmentartsinc.com) operating subsidiaries are HolograFX, Inc. (www.holografxinc.com) and Song Factory, Inc. HolograFX has an exclusive worldwide licensing agreement in a patented 3D holographic technology to market, sell, manufacture and license this unique product. Song Factory, Inc. produces, markets and licenses karaoke content. Both companies are located at 27 Bland Street, Emerson, NJ 07630.

Certain statements in this press release constitute “forward-looking statements” relating to Entertainment Arts, Inc. and its subsidiaries (the “Company”) within the meaning of the Private Securities Litigation Reform Act of 1995. All statements regarding future events, our financial performance and operating results, our business strategy and our financing plans are forward-looking statements. In some cases you can identify forward-looking statements by terminology, such as "may," "will," "would," "should," "could," "expect," "intend," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or other comparable terminology. These statements are only predictions. Known and unknown risks, uncertainties and other factors could cause actual results to differ materially from those contemplated by the statements. In evaluating these statements, you should specifically consider various factors that may cause our actual results to differ materially from any forward-looking statements.