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Krome Studios Expands With New Studio In Melbourne

Leading Game Developer Continues to Blaze the Trail for Independent Studios Growing its Resources with Acquisition of Established, Seasoned Talent

Brisbane, Australia-November 3, 2006-Krome Studios, the largest videogame company in Australia and leading worldwide independent game studio, announced today that it has acquired Melbourne House, the former Atari development studio based in Melbourne, Australia. The addition of Melbourne House bolsters Krome Studios' size to almost 300 in-house making it truly one of the largest and most proven independent studios worldwide.

With the Melbourne House acquisition, Krome Studios inherits highly skilled and seasoned programmers, engineers, artists and production personnel who will be ready to make immediate contributions to Krome's upcoming games and further enhance the Studios' tools pipeline. The Melbourne studio will now be known as Krome Studios Melbourne and will act as an extension to the headquarters in Brisbane. This acquisition, along with Krome Studios Adelaide, which was formed and announced earlier this year, and a network of extensive outsourcing partners throughout Asia Pacific and Europe solidifies Krome as a leading global independent studio.

"It's an amazing time for us right now and we couldn't be happier to welcome this new team to the Krome family," said Robert Walsh, CEO of Krome Studios. "Acquiring the Melbourne House studio will allow us to continue to expand our company with additional seasoned talent, many who we also are great friends with, to help further grow our business and position ourselves as a world-class development studio working on both current and next generation projects."

Krome Studios recently finished development on The Legend of Spyro: A New Beginning for Sierra Entertainment, and continues the development on the upcoming Hellboy (*working title) for Konami Digital Entertainment, Inc. which is scheduled for release in 2007. The studio is also working on several unannounced current and next generation games, as well as continued focus on extending their catalog of original IPs.

For more information on Krome Studios, please visit www.kromestudios.com.

About Krome Studios

Krome Studios is one of the leading independent developers in the world and the largest game development studio in Australia with more than 280 employees. Founded in 1999, the studio is best known for developing the TY the Tasmanian Tiger series, which has sold two million units worldwide and is the best-selling Australian game of all time. Krome Studios has shipped more than a dozen titles, including the TY the Tasmanian Tiger series, The Legend of Spyro: A New Beginning, King Arthur, The Adventures of Jimmy Neutron Boy Genius: Jet Fusion, Sunny Garcia Surfing, Extremely Goofy Skateboarding, Barbie Beach Vacation and Championship Surfer to name a few. The official homepage of Krome Studios is www.kromestudios.com.

KROME STUDIOS and the Krome Studios logo and TY The Tasmanian Tiger are trademarks of Krome Studios Pty Ltd. All Trademarks not owned by Krome Studios are the property of their respective owners.

"The Legend of Spyro: A New Beginning" interactive game 2006 Universal Interactive, Inc. Spyro and related characters are TM and Universal Interactive, Inc. All rights reserved. Sierra and the Sierra logo are registered trademarks or trademarks of Sierra Entertainment, Inc. in the U.S. and/or other countries.

Contact:

Barbara Gamlen/Jeane Wong

barbara@oneprstudio.com / jeane@oneprstudio.com

510-893-3271

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