EXHIBIT 99.1

INTERPLAY  TERMINATES   DISTRIBUTION  AGREEMENT  WITH  VIVENDI  UNIVERSAL  GAMES

INTERPLAY CONSIDERS LEGAL ACTION, PURSUES NEW DISTRIBUTION OPTIONS

IRVINE,  CA, September 26, 2003 -- Interplay  Entertainment  Corp. (OTC Bulletin
Board:  IPLY.OB)  announced today it has terminated its  distribution  agreement
with Vivendi Universal Games ("Vivendi").

Commenting on the announcement,  Interplay  Chairman and Chief Executive Officer
Herve Caen said, "In the interest of our company and its shareholders, we had no
choice but to terminate this agreement.  After several  notifications to Vivendi
of its failure to perform in  accordance  with the terms of our agreement and in
particular, in refusing to pay Interplay certain monies due following our latest
release,  Lionheart,  we still did not receive the  payments  owed to us. We are
currently  evaluating  several other  distribution  options.  We fully expect to
release two of our strongest titles,  Baldurs Gate: Dark Alliance 2 and Fallout:
Brotherhood of Steel for Xbox and Playstation 2 in the fourth quarter."

Interplay  also  announced it is  considering  legal action  against  Vivendi to
recover the payments it believes it is owed, as well as to address various other
claims as a result of the alleged  failure of Vivendi to perform under the terms
of the agreement.

Interplay  Entertainment  Corp.  is  a  worldwide  developer  and  publisher  of
interactive  entertainment  software  for both core gamers and the mass  market.
Founded  in  1983,   Interplay   offers  a  broad   range  of  products  in  the
action/arcade,  adventure/role-playing game (RPG) and strategy/puzzle categories
across multiple platforms, including Sony PlayStation2, Microsoft Xbox, Nintendo
GameCube and PCs.  Interplay's  common stock is publicly traded under the symbol
IPLY:OB.   For  more  information  about  Interplay  please  visit  our  website
www.interplay.com.

Safe Harbor Statement under the Private Securities Reform Act of 1995:





Statements  contained in this release,  except for historical  information,  are
forward-looking  statements that are based on current  expectations  and involve
risks and uncertainties. Without limiting the generality of the foregoing, words
such as "expect,"  "believes,"  or "allege" or the negative or other  variations
thereof or  comparable  terminology  are  intended to  identify  forward-looking
statements.  The risks and  uncertainties  inherent in such statements may cause
actual future events or results to differ  materially  and adversely  from those
described in the forward-looking  statements.  The risks and uncertainties which
may cause actual  future  events or results to differ  materially  and adversely
from those  described in the  forward-looking  statements  include,  but are not
limited to, (a) the success of the company in obtaining recovery and judgment in
litigation, (b) the company's ability to procure alternative distribution means,
(c) the company's  ability to consistently  and timely release  products and its
ability to control  costs,  (d)  consumer  demand or reaction  to the  company's
future games and (e) other factors  discussed in the company's filings from time
to time with the Securities and Exchange  Commission,  including but not limited
to the company's  annual report on Form 10-K for the fiscal year ended  December
31,  2002 and the  company's  subsequent  quarterly  filings on Form  10-Q.  The
company  disclaims  any  obligation  to  revise or  update  any  forward-looking
statements that may be made from time to time by it or on its behalf.