Longtime rock `n' roller Scott Page and computer software whiz George Grayson, along with veteran music producer Bob Ezrin, recently launched 7th Level, an interactive entertainment studio with a name that they say suggests the "eminence, achievement and transcendence" they are looking for in developing next-generation interactive education and entertainment titles.

And while the company's name and the philosophy behind it borders on New Age, 7th Level itself is firmly grounded in the business of Hollywood-style entertainment and Wall Street finance.

The money behind 7th Level

As with so many new media companies getting started today, it is the behind-the-scenes activity at 7th Level -- and not the actual products -- that is the most exciting aspect of the company. 7th Level is backed by Michael Milken, the one-time junk bond king, who since being released from a federal prison for federal securities law violations last March, has publicly championed interactive learning with gusto. In addition, Merv Adelson, the former chairman and co-founder of Lorimar, Inc., who is now chief executive of the merchant banking firm East-West Capital Group, has invested in 7th Level. Adelson is also a member of the Time Warner board of directors.

Three years in gestation. The Los Angeles-based interactive media studio is the brainchild of Grayson, a cofounder of the computer graphics company Micrografx, and Page, who is best known as a tenor saxophonist for music groups Supertramp and Pink Floyd. The two met three years ago at a Comdex computer trade show and discovered they shared a mutual belief that interactive software is the future of entertainment.

A multimedia spectacular. After the Comdex meeting, Grayson and Page decided to try to work together on a project that combined their...