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SEGA Purchases New Unreal Engine 3 License

FOR IMMEDIATE RELEASE

SAN FRANCISCO– May 27, 2008– SEGA® of America today announced that it has extended its relationship with Epic Games by signing a new Unreal Engine 3 licensing deal for an unannounced, cross-platform game. SEGA entered into its original licensing agreement to develop multiple titles with Unreal Engine 3 in May 2007. Details of the project in development will be released at a later date.

"The great capabilities of Unreal Engine 3 make it possible for our developers to deliver incredible gaming experiences,” said Dave Cobb, Vice President of Development for SEGA of America, Inc. "Unreal Engine 3 provides superior power and flexibility enabling SEGA to bring original and exciting next-generation multi-platform titles."

“SEGA has cultivated some of the world’s most treasured game franchises, and we are thrilled that they have decided to make more games with Unreal Engine 3,” said Mark Rein, vice president of Epic Games.“Epic is committed to supporting SEGA with exceptional tools and technologies so it may continue to build upon its successes.”

Developers and publishers around the world have licensed Unreal Engine 3 for PC, Xbox 360 and PlayStation 3. Since Epic has shipped its internal titles across all supported platforms, the engine's content pipeline and technical capabilities have achieved unprecedented levels of maturity and accessibility. These advancements, combined with the continual incorporation of top quality middleware libraries via Epic's prestigious Integrated Partners Program, present Unreal Engine 3 as a superior offering for cross-platform game development.

Through this licensing agreement, SEGA will be able to take advantage of Unreal Engine 3’s latest technological enhancements, including dynamic ambient occlusion, destructible environments, an advanced crowd system and much more.

About SEGA® of America, Inc.

SEGA® of America, Inc. is the American arm of Tokyo, Japan-based SEGA® Corporation, a worldwide leader in interactive entertainment both inside and outside the home. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment Inc. The SEGA of America, Inc. Web site is located at www.sega.com.

About Unreal Engine 3

The award-winning Unreal Engine is known for cutting-edge graphics and its best-of-breed toolset. Unreal Engine 3 maintains those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3's advanced toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained throughthe Unreal Technology Web site at www.unrealtechnology.com.

About Epic Games

Epic Games, Inc., based in Cary, NC and established in 1991, develops cutting-edge games and cross-platform game engine technology. The company has created multiple million-selling, award-winning titles in its Unreal series, recently shipping Unreal Tournament 3 for PC and PlayStation 3. Epic’s breakthrough game, Gears of War, sold over 4.7 million copies and was awarded overall Game of the Year for 2006 by the Academy of Interactive Arts&Sciences, Game Developers Choice Awards, GameSpot, GamePro and many others. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including the Game Critics Awards’ Best Console Game and Spike TV’s 2007 RPG of the Year Mass Effect by BioWare and the 2007 BAFTA Best Game and Spike TV Game of the Year BioShock by 2K Games. Epic's Unreal Engine 3 is the current holder, and three-time consecutive winner, of Game Developer magazine's Front Line award for Best Engine. Epic was also recognized as 2006 Studio of the Year by Spike TV, 2006 Developer of the Year by Official Xbox Magazine and 2007 Large Company of the Year by the North Carolina Technology Association. Additional information about Epic can be obtained through the Epic Games Web site at www.epicgames.com.

Epic, Epic Games, Unreal, Unreal Tournament and Gears of War are trademarks or registered trademarks of Epic Games, Inc. in the United States of America and elsewhere. All other trademarks are the property of their respective owners.

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PRESS CONTACTS

Caroline Capers

Access Communications for SEGA

ccapers@accesspr.com

+1 415 844 6246

Dana Cowley

Public Relations Manager

Epic Games, Inc.

dana.cowley@epicgames.com

+1 919 447 4515