Graphix Zone to Stores

Graphix Zone, an Irvine-based publisher of multimedia software, said its products will soon be available in mass merchandise stores such as Wal-Mart and Target through an exclusive distribution deal with GT Interactive Software Corp.

As part of the deal, GT Interactive also received warrants to purchase up to 800,000 shares of Graphix Zone common stock. The warrants, which must be exercised within five years, would enable New York-based GT to acquire an 8% interest in the combined company that will be created when Graphix Zone completes its recently announced merger with StarPress, another multimedia publishing company.

Graphix Zone’s products, which include CD-ROMs featuring artists such as Bob Dylan, have long been available at most software and computer stores. But company officials said this deal marks Graphix Zone’s first entry in major retail outlets.