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Kynapse selected for SEGA's next generation Sonic

FOR IMMEDIATE RELEASE

Paris, France - September 4, 2006 - Kynogon, the leading A.I. middleware developer, has announced today that SEGA has licensed Kynapse to develop its million-seller title, Sonic on Xbox 360TM and PLAYSTATION®3.

Since his birth 15 years ago, Sonic The Hedgehog has been a phenomenal mass-market success. More than 44 million units have been sold worldwide. The legendary Sonic mascot is one of the most recognized and celebrated video game characters of all.

"We are very proud to be working with SEGA on an icon title like Sonic for next generation platforms", said Pierre Pontevia, CEO for Kynogon. "As one of the true leaders of the industry, SEGA sets the tone for game development. It is a great opportunity and a true recognition for Kynogon to work on a next generation title with them."

About SEGA Corporation

SEGA® Corporation is a worldwide leader in interactive entertainment both inside and outside the home, encompassing consumer business, amusement machine sales and amusement center operations. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment Inc. SEGA® Corporation's Web site is located at http://sega.jp.

About Kynogon

Kynogon develops and markets A.I. software for real-time behavior simulation. Kynogon's technology is used by the world's leading game developers (Electronic Arts, Atari, Real Time Worlds, Lionhead Studios, Pyro Studios, Majesco, Artificial Mind & Movement, ...) as well as industry leaders (EADS, British Aerospace, ...) Kynogon has 6 years experience providing AI production solutions for the games industry, working with our clients from preproduction to gold master. The company's latest offering is Kynapse, a unique A.I. engine. With Kynapse, Non Player Characters can move around in any 3D dynamic world, understand their environment, hide, communicate, cooperate, drive vehicles, etc. For more information please visit www.kynogon.com.

® 2006 Kynapse, Kynogon is a registered trademark.

"PlayStation" is a registered trademark of Sony Computer Entertainment Inc.

Xbox 360 is either a registered trademark or a trademark of Microsoft Corporation in the United States and/or other countries.

Jacques Gaubil

Kynogon

Jacques.gaubil@kynogon.com

+33 156 035 980

www.kynogon.com

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