SECOND LIFE WELCOMES 100,000th RESIDENT TO VIRTUAL WORLD

Virtual pioneers settle in first true realization of the Metaverse

SAN FRANCISCO, Calif. — (January 5, 2005) — Linden Lab®, creator of Second Life® today announced the 3D online world's population now exceeds 100,000 residents. The community includes residents from 95 countries and 7 continents and is comprised of a vibrant mix of content creators, virtual entrepreneurs and digital socialites who spend an average of 4 hours per day building and exploring the world and conducting over US$3.4mm in monthly transactions. The only virtual environment that grants its residents full ownership of intellectual property, Linden Lab has seen the Second Life economy and the world's population grow at a rate of more than 20% a month.

"Second Life is what we all dreamed the web could become when we first saw it in 1994", said Philip Rosedale, CEO and founder of Second Life. "As the world has grown we've seen it blossom with more experimentation and ambitious development. Projects like the Katrina Benefits, the American Cancer Society's Relay for Life and in-world book talks by prominent authors demonstrate there are many ways to experience Second Life. I've seen everything from a weekly dinner club hosted by a singing Frog to fashion designers who are making their living in Second Life. In fact, Tringo, a game that was created in Second Life by Resident Kermitt Quirk, just transitioned from Second Life to GameBoy Advance. It's exciting to witness the evolution of Second Life and to find it is as full of interesting characters and amazing stories as the real world is."

"As the population in Second Life has grown, so has the economy" said David Fleck, VP of Marketing for Linden Lab. "The market for goods and services has accelerated dramatically over the last few months and with more consumers than ever, it's truly a creator's market with over US$3.4 million trading in goods and services between our residents every month. Over 515 people had in-world revenues in excess of US$1,000 in Second Life last month alone. Our goal is to create in Second Life the tools and platform needed to ensure that developers can create compelling content easily and efficiently."

Second Life is available as a free download, with residents paying if they choose to own land in-world A currency exchange is available to transfer US$ into and out of the Second Life currency. For more information, please visit secondlife.com.

About Linden Lab

Linden Lab was founded in 1999 by Philip Rosedale to create a revolutionary new form of shared 3D experience. The former CTO of RealNetworks, Rosedale pioneered the development of many of today's streaming media technologies, including RealVideo. In April 2003, noted software pioneer Mitch Kapor, founderof Lotus Development Corporation, was named Chairman. In 2005, Second Life was designated "Best of the New Web" by Business Week Magazine.

Based in San Francisco, Linden Lab employs a senior team bringing together deep expertise in physics, 3D graphics and networking. Team members have previously worked for market leading companies such as Electronic Arts, Maxis, Disney, Macromedia, THQ, Acclaim, Hasbro, Mattel and RealNetworks.

Note to editors: Second Life® and Linden Lab® are registered trademarks of Linden Research, Inc.