Sega Partners with Silicon Knights: Game News

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Sega Partners with Silicon Knights to Create Next Generation Content

(Press Release)

Acquisitions of Western Content Prime SEGA for Growth

SAN FRANCISCO & LONDON (March 23, 2005) – SEGA of America, Inc. and SEGA, Europe Ltd. today announced an agreement to acquire and publish next-generation game content from Silicon Knights, the Ontario, Canada-based development team responsible for such hits as Metal Gear Solid: The Twin Snakes, Blood Omen: Legacy of Kain, and Eternal Darkness. The partnership brings SEGA more Western-developed content in preparation for high-growth opportunities presented by next-generation hardware platforms.

Under the terms of the worldwide exclusive deal, SEGA and Silicon Knights will collaborate on creating a new franchise for next generation console systems. This agreement, along with recent partnerships with publisher, Warner Bros. Interactive Entertainment (project: The Matrix Online); developer, Monolith Productions (project: Condemned); and the acquisition of esteemed developer, The Creative Assembly (project: Spartan: Total Warrior) continues to highlight SEGA’s emphasis on the Western market.

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“We intend to establish SEGA as a leading publisher on the next generation of game hardware and only the highest possible quality of Western-developed content will get us there,” said Simon Jeffery, President and COO, SEGA of America. “Silicon Knights has a rich history of developing great games that push hardware technology, so we expect this relationship will result in a powerful, new, and highly commercial franchise.”

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“Silicon Knights believes that the next generation systems will be the catalyst propelling video games as the dominant form of entertainment in this century,”

said Denis Dyack, President of Silicon Knights. “We are very excited to collaborate with SEGA on a next generation project because we share a vision – to take the medium of games to new heights and move people as never before.”

SEGA will manage all marketing and distribution activities and work in hand with Silicon Knights to supervise ongoing game development. Both companies have decided not to release product, platform, or release details at this time.