Artificial Life, Inc. Announces Equity Investment from 3M and Strategic Alliance Agreement

Under the Purchase Agreement, Artificial Life, Inc. sold to 3M 6,447,491
shares of its common stock at a price of $1.00 per share, for an aggregate
consideration of $6,447,491. The basic and diluted number of shares
outstanding immediately after the transaction is 56,984,858 and 64,474,911,
respectively. The proceeds will fund an equity contribution by 3M,
representing a 10% equity interest in Artificial Life, calculated on a fully
diluted basis.

Besides the investment, 3M and Artificial Life have entered into an
alliance agreement (the "Alliance Agreement") outlining the parties intent to
collaborate in the coming years in projects related to the research and
development of new mobile device products and technology. In addition, the
Alliance Agreement provides that 3M and Artificial Life plan to cooperate in
connection with the marketing of certain of Artificial Life's existing and new
products. The focus of the cooperation under the Alliance Agreement is
expected to be in the following areas:

    -- General mobile and broadband applications and technologies
    -- Digital Watermarking
    -- Virtual Reconstruction of 2D and 3D Objects
    -- Augmented Reality
    -- 3D Image processing
    -- Object recognition
    -- Mobile Healthcare and Diabetes Solutions
    -- Mobile Marketing and M-Commerce Platform

"We are excited to become an investor in Artificial Life," said Stefan
Gabriel, president, 3M New Ventures. "We are looking forward to collaborating
with Artificial Life on a number of exciting technology applications in these
fast growing markets all across the wide range of 3M businesses."

"We are honored that 3M has chosen us for a strategic investment and as a
new cooperation partner in the mobile space. The investment and the alliance
agreement with 3M provide a strong, global business opportunity for us. The
cooperation will allow us to create innovative business and lifestyle
applications for one of the leading innovators in the business world and the
general public. We are looking forward to working with 3M on many projects in
the coming years," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

The issuance of the shares of Artificial Life's common stock in connection
with the Purchase Agreement has not been registered under the Securities Act
of 1933, as amended (the "Securities Act"). Accordingly, these securities may
not be offered or sold in the United States except pursuant to an effective
registration statement or an applicable exemption from the registration
requirements of the Securities Act.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy Artificial Life's common stock.

About Artificial Life, Inc.

Artificial Life, Inc. (OTCBB: ALIF | Quote | Chart | News | PowerRating) is a public US corporation
headquartered in Los Angeles, with its production center in Hong Kong and
additional offices in Berlin (EMEA headquarters) and Tokyo. As a leading,
full-service provider of mobile broadband 3G technology, mobile participation
TV, mobile gaming, content and business applications, Artificial Life provides
2D and 3D multi- and single player rich-media applications for 3G, 3.5G and 4G
network-enabled mobile phones. Recognized internationally for outstanding
content quality and technology, Artificial Life transcends traditional modes
of mobile communications and interactive gaming. For more information, please
visit http://www.artificial-life.com or the company's m-commerce portal at
http://www.botme.com .

About 3M

A recognized leader in research and development, 3M produces thousands of
innovative products for dozens of diverse markets. 3M's core strength is
applying its more than 40 distinct technology platforms -- often in
combination -- to a wide array of customer needs. With $25 billion in sales,
3M employs 75,000 people worldwide and has operations in more than 60
countries. For more information, visit http://www.3M.com .

    Contacts:

    Artificial Life, Inc.
     Ada Fong
     Tel:   +852-3102-2800
     Email: ir@artificial-life.com

    3M
     Media Contact:
     Donna Fleming Runyon
     Tel:   +1-651-736-7646

     Investor Contacts:
     Matt Ginter
     Tel:   +1-651-733-8206

     Bruce Jermeland
     Tel:   +1-651-733-1807

Forward-Looking Statements:

This press release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. Such forward-looking
statements include, without limitation, statements regarding our future
results of operations, financial condition and business prospects. In some
cases, you can identify forward-looking statements by terminology such as
"may", "will", "should", "expect", "intend", "plan", "anticipate", "believe",
"estimate", "predict", "potential", "continue" or the negative of these terms
or other comparable terminology. Although such statements are based on our own
information and information from other sources we believe to be reliable, you
should not place undue reliance on them. These statements involve risks and
uncertainties, and actual market trends or our actual results of operations,
financial condition or business prospects may differ materially from those
expressed or implied in these forward looking statements for a variety of
reasons. Potential risks and uncertainties include, but are not limited to,
our ability to obtain additional funding to operate and grow our business; the
unproven potential of our mobile gaming business model; changing consumer
preferences and uncertainty of market acceptance of our products; timely
adoption and availability of 3G mobile technology; market acceptance for use
of mobile handheld devices to play the interactive games; unpredictable mobile
game development schedules; our reliance on a relatively small number of
brands; our ability to license brands from others; our dependence upon
resellers and telecommunication carriers and operators to distribute our
products; our ability to successfully develop, introduce, and sell new or
enhanced products in a timely manner; and the timing of new product
announcements or introductions by us or by our competitors. For additional
discussion of these risks and uncertainties and other factors, please see the
documents we file from time to time with the Securities and Exchange
Commission, including our Annual Report on Form 10-KSB filed on February 10,
2009. We assume no obligation to update any forward-looking statements, which
apply only as of the date of this press release.

SOURCE Artificial Life, Inc.

http://www.artificial-life.com

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