Distream Seeks Injunctive Relief Against Infinium Over Alleged Trade Secret Violations

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Distream, developer of advanced digital video delivery technologies, has sued Infinium Labs (OTC BB: IFLB.OB), over breaches of contract and misappropriation of trade secrets, in Florida state court. Distream seeks injunctive relief to protect its intellectual property, as well as over $10 million in damages relating to its rightful ownership interest in Infinium.

Digital Interactive Systems, Inc. (“DiStream”), and Royal O'Brien, its Chairman and Founder, yesterday, filed suit against Infinium Labs, Inc. (OTC BB:IFLB.OB)and its two founders in the Circuit Court of the Fourth Judicial Circuit in and for Duval County,Florida. The complaint alleges material breaches of a series of agreements relating to Infinium's acquisition of DiStream’s proprietary, confidential information, technology and know-how.

The agreements negotiated between DiStream, Mr. O'Brien and Infinium authorized Infinium to utilize DiStream technology – including two modules of its DiStream Server, DiEMS (Enterprise Management System) and DiSMS (Services Management System) and its DiCRYPT, AES standard

encryption engine used to protect content during distribution – to develop, launch and protect Infinium’s gaming network. After the parties executed the agreements, Infinium trumpeted the arrangement, asserting in a November 4, 2003 news release that with DiStream’s technology “Infinium has taken a big step toward its goal of offering consumers the largest selection of game software.”

DiStream and Mr. O’Brien further allege that by promising them significant ownership interests in Infinium, the defendants induced them to provide Infinium with technological know-how essential to

the planned 2004 launch of its gaming network. On the strength of this technological know-how and the substantial contribution of DiStream and Mr. O’Brien to Infinium, the lawsuit alleges, the

defendants procured essential financing and began to execute on Infinium’s business plan.

In February, 2004, without warning, Infinium terminated its relationship with both DiStream and Mr. O’Brien. In clear violation of its agreements with DiStream and Mr. O’Brien, Infinium refused to tender to DiStream and Mr. O’Brien either the shares to which each was entitled for their efforts on Infinium’s behalf, or promised cash consideration.

DiStream also seeks injunctive relief to prevent Infinium from employing any trade secrets, relating to their agreement, that Infinium received from DiStream for any purpose, including procuring financing or launching its gaming network.

About DiStream

DiStream is an innovative technology company that develops radical digital content and delivery technologies for the media center of tomorrow, today. DiStream creates a new kind of advanced content delivery and digital video technologies. Technology that is market-driven and business-sensible. The result is a rich portfolio of patent-pending technologies and products that span the entire digital content distribution spectrum.

For further information contact:

David Senoff, Esquire

Billet & Connor, P.C.

2000 Market Street, 28th Floor

Philadelphia, PA 19103

215 496 7500

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David Senoff

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