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AGEIA and Spark Unlimited Announce Technical and Marketing Partnership

Upcoming Pandora game will specify AGEIA PhysX processor as

LOS ANGELES, Calif. - May 17, 2005 - At the Electronic Entertainment Expo (E3), AGEIATM Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced that it has reached an agreement with Spark Unlimited to share technical and marketing expertise, with the goal of delivering unprecedented physics-based realism and artistry to next-generation games. The initial focus of the agreement will be to optimize Spark's upcoming Pandora game for AGEIA's PhysX processor, the world's first and only dedicated physics processing unit. The new game, scheduled for release in October 2006, will list the AGEIA PhysX processor as a recommended minimum system requirement. Spark and AGEIA are also exploring the development of exclusive hardware-accelerated content to coincide with the release of the AGEIA PhysX processor this fall.

"The team at AGEIA is exciting to work with because they "get it" when it comes to approaching technology as a tool for enabling the artistry of developers and the enjoyment of game users," said Craig Allen, CEO of Spark Unlimited. "With AGEIA's physics technology and support, our artists, game designers, and animators will have an inspiring palette of new tools for creating games that are fun and challenging for gamers."

"The talented group at Spark shows an uncommon devotion to artistic integrity and customer value," said Manju Hegde, founder and CEO of AGEIA. "Our partnership with Spark will strengthen our commitment to excellence in game content, supported by the continuous advancement of physics technology from our own creative team."

AGEIA will be demonstrating games using AGEIA PhysX technology at E3. (By appointment only, Kentia hall, booth #7532.)

About Spark Unlimited

Spark UnlimitedTM is a developer of high-quality games for all console systems including the PlayStation® 2, XboxTM, NINTENDO GAMECUBETM, as well as the next generation of consoles from Sony, Microsoft and Nintendo. Founded in 2002 and headquartered in Sherman Oaks, California, Spark UnlimitedTM is an employee-owned company that seeks to create artistry through technology for a global gaming audience. For more information about Spark UnlimitedTM, please visit our website at www.sparkunlimited.com.

About AGEIA

AGEIATM Technologies, Inc. is a fabless semiconductor company and the pioneer of hardware-accelerated physics for games. Its flagship product, the PhysX processor, is the world's first dedicated physics processing unit - a completely new hardware category. The PhysX processor and supporting software deliver the processing horsepower to calculate real-time interactive worlds. Developers can define these worlds to obey the laws of classical physics, or create their own physical laws that make their game a unique, hyper-dimensional experience.

AGEIA seeks to ignite innovation in the games industry by working with leading developers, publishers, add-in board vendors and console manufacturers to deliver the next generation of physically immersive entertainment. Consumer add-in boards and systems equipped with the AGEIA PhysX processor and games that take advantage of the technology will be available in late 2005. For more information visit www.ageia.com.

AGEIA Media Contact:

Kim Stowe

Reverb Communications, Inc.

(408) 839-8750

kim@reverbinc.com

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