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AGEIA Acquires Meqon Research AB

Acquisition will add new physics functionality to AGEIA’s PhysX SDK, while augmenting the AGEIA engineering team with expert Meqon talent

MOUNTAIN VIEW, Calif. - September 1, 2005 - AGEIATM Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced that it has acquired Meqon Research AB, a physics development company based in Sweden. Known for its forward-looking features and multi-platform support, Meqon recently earned international acclaim in the games world for its physics technology incorporated in 3D Realms' Duke Nukem Forever and Saber Interactive's TimeShift.

With this key acquisition, AGEIA will gain ownership of the Meqon Game Dynamics SDK, a developer-focused physics solution that has earned rave reviews from leading developers for its technical innovations, stability, ease of implementation and support. Meqon's technology will be incorporated into the AGEIA PhysXTM SDK, adding extensive new capabilities for game developers.

In addition, the Meqon acquisition will augment the highly skilled engineering team at AGEIA with Meqon's talented team of engineers, who offer some of the industry's most advanced physics expertise. At the same time, AGEIA will make every effort to support current Meqon customers and provide a smooth transition to next-generation versions of the AGEIA PhysX SDK.

"AGEIA is a physics juggernaut in the games industry with its strategic acquisitions and its groundbreaking AGEIA PhysX processor," said Meqon CEO Jonas Lindqvist. "Our team is thrilled to join forces with AGEIA to transform the future of next-generation games."

The merging of AGEIA and Meqon creates powerful synergies, combining Meqon's expertise in industrial physics simulation, content creation tools and character/vehicle simulation with AGEIA's multi-threading, high-speed collision detection, hair and clothing simulation, and more. These synergies will make the AGEIA PhysX SDK an even more compelling solution for game developers, who have already embraced AGEIA technology with enthusiasm.

"Meqon is a perfect match for the philosophy and technology of AGEIA, and we will hit the ground running to integrate Meqon technology into the AGEIA PhysX SDK," said Manju Hegde, founder and CEO of AGEIA. "Following our acquisition of NovodeX last year, the acquisition of Meqon unites the world's most advanced physics technology under one roof, and is a key milestone in our relentless pursuit of physics excellence."

About Meqon Research AB

Meqon was founded in 2002 and has its headquarters in Norrköping, Sweden. The company develops physics middleware for the computer game industry and has in its short existence enhanced both games and industrial products with its simulation products. More information available at http://www.meqon.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 http://www.ageia.com.

*® AGEIA, PhysX and NovodeX are trademarks of AGEIA Technologies, Inc. All other products are trademarks of their respective companies.

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