AGEIA Technologies Forges Partnership with D&H Distributing

MOUNTAIN VIEW, Calif. - October 31, 2006 - AGEIA Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced an agreement with D&H Distributing to further expand product distribution in the U.S. D&H Distributing is one of the nation's leading technology distributors specializing in emerging trends across IT, Computer, Electronics, Entertainment, and Gaming.

The AGEIA PhysX Processor is the world's only dedicated hardware accelerator that delivers the computing horsepower necessary to enable true, advanced physics in games. The technology enables real-time, high quality, dramatic and truly representative simulations that bring new dimensions to the gaming experience, including collisions, explosions, complex jointed geometries, fabrics that drape and tear, dense smoke and liquids, multiple objects and particles, as well as other physical events.

"AGEIA Technologies is an innovative leader with the only hardware-based physics solution on the market. AGEIA's PhysX sets a new bar for realism and environmental interaction in games" said Tina Fisher, purchasing director at D&H. "We look forward to bringing the high-end functionality that AGEIA's PhysX is known for to an even wider array of system builders and end-user customers."

"System builders represent a significant opportunity for our products as we continue to grow and expand our PhysX offerings," said Chris Engel, VP of Sales at AGEIA Technologies. "With D&H's network of value added resellers they will help us broaden our market reach and enable new system builders gain the benefits of our market leading solutions."

About D&H Distributing

D&H Distributing is one of America's oldest and largest wholesale distributors of computer and consumer electronics products, with an impressive 85-year history serving as a trusted advisor to the reseller channel. D&H distributed the first-ever home computer, the first color television, and even the first gaming system. No other distributor has a greater depth of experience as a one-stop resource for IT and consumer electronics solutions than D&H. The company's multi-market expertise, dedicated account reps, sterling service and ongoing educational programs reflect its continuing commitment to its customer base. This level of all-around support enables D&H resellers and dealers to become pioneers of the newly-converging technological landscape, encompassing opportunities in the IT, SMB and digital home arenas.

D&H was voted Most Valued Broadline Distributor in the Ease of Doing Business, Relationships and Unique Product Line categories of the 2006 CRN Sourcing Study, and ranked first place for performance among broadline distributors in the 2005 study, wining top marks for loyalty two years in a row. The distributor was also named Vendor of the Year by Computer Renaissance in 2004 and 2005, Best Distributor in the RAM Awards in 2004 and 2005, and Distributor of the Year by Digital Connect in 2006.

D&H ships out of five separate locations, including its Harrisburg headquarters, plus warehouses in Jacksonville, Chicago, Dallas and Fresno, CA. Call D&H toll-free at (800) 340-1001 or visit http://www.dandh.com.

About AGEIA

AGEIA Technologies, Inc., is the pioneer of hardware-accelerated physics for PC games and has developed the world's first dedicated physics processor, the AGEIA PhysX processor. The AGEIA PhysX processor powers massive and pervasive real-time interactive worlds that for the first time obey the laws of classical physics. AGEIA provides a world-class cross platform software development kit to simplify advanced physics programming for the PhysX processor, as well next-generation gaming consoles. AGEIA is changing the face of gaming by working with more than sixty leading developers and publishers to deliver the next generation of physically immersive entertainment. The company, headquartered in Mountain View, Calif., is privately-held. For more information visit http://www.ageia.com.

Media Contacts:

Peter Evers

pevers@double-forte.com

415-863-4900X206

Marti Miernik

mmiernik@ageia.com

650-201-3750