Hip Interactive Corp., Canada's leading provider of electronic entertainment, including video games, PC games, accessories and movies, announced today that it completed the acquisition of World Entertainment Broadcasting Corporation (doing business as "ARUSH Entertainment"), a privately held Scottsdale, Arizona based publisher of video and PC games. Under the terms of the transaction, Hip acquired all of the outstanding shares of ARUSH upon issuance of 871,312 common shares of Hip of which 55,607 are being held in escrow for a period of up to one year. Under the terms of the escrow agreement, the principal shareholder of ARUSH is entitled to purchase the escrowed shares from Hip at a price of $1.50 per share. Pursuant to the Agreement and Plan of Merger, Hip shall be obligated to pay additional purchase price consideration based on an earn-out arrangement through the period ended March 31, 2007. Hip expects the transaction to be accretive in fiscal 2005.