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SEGA Taps Gearbox Software To Develop Alien Title For Next-Generation Systems

First-Person Shooter to be Based on Motion Picture Franchise

FOR IMMEDIATE RELEASE

LONDON & SAN FRANCISCO (December 15, 2006) - SEGA of America Inc. and SEGA Europe Ltd. today announced the signing of critically-acclaimed developer Gearbox Software to create a first-person shooter title based on the Alien film franchise for the next-generation systems, with license from Twentieth Century Fox Licensing & Merchandising. The agreement complements the recent announcement of an Alien RPG title for the next-generation systems to be developed by Obsidian Entertainment.

Gearbox Software is a leading developer in the first-person shooter genre, producing titles for the industry's top franchises including Brothers in Arms, Halo and Half-Life. They consistently produce best-selling titles and have garnered numerous industry awards. Gearbox Software's FPS Alien title will retain the atmospheric look and feel of the original films while leveraging next-generation technology to create an entirely new interactive Alien experience.

"Gearbox Software has a storied history of bringing innovative and compelling design to the FPS category," said Simon Jeffery, President and COO, SEGA of America, Inc. "Combining their design talents with the intense action of the Alien franchise ensures that gamers will have an immersive and action-packed experience."

"The Alien series has been a tremendous influence for myself, the people at Gearbox Software and the video games industry in general," said Randy Pitchford, President of Gearbox Software. "The opportunity to work with the amazing people at SEGA and Fox to build a next generation video game in the Alien universe is one of those dream projects that is a perfect fit for our capability and our passion."

Since its 1979 debut, Alien and its three sequels have grossed more than $557 million worldwide, garnering numerous awards, including two Academy Awards. In 2002, Alien was deemed "culturally significant" by the United States Library of Congress and was selected for preservation in the National Film Registry. For more information, please visit www.sega.com/aliens

About SEGA of America

SEGA of America, Inc. is the American arm of Tokyo, Japan-based SEGA Corporation, a worldwide leader in interactive entertainment both inside and outside the home. 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 of America's Web Site is located at www.sega.com.

About SEGA Europe:

SEGA Europe Ltd. is the European Distribution arm of Tokyo, Japan-based SEGA Corporation, and a worldwide leader in interactive entertainment both inside and outside the home. 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 Europe. SEGA Europe's Web Site is located at www.sega-europe.com.

About Gearbox Software

GearboxSoftware, an independent video game development studio located in Dallas, TX, is respected industry-wide for their ability to create award winning, blockbuster interactive entertainment. Comprised of veteran talent, Gearbox Software has established itself as an industry leader, developing games for consoles and personal computers for many of the industry's top franchises including Half-Life, Halo: Combat Evolved, Counter-Strike, James Bond and Tony Hawk. With Brothers in Arms Road to Hill 30, Gearbox Software launched its first original brand to receive critical acclaim and record sales in 2005. Gearbox Software is currently developing original titles for next generation video game consoles and Windows Vista. Additional information regarding Gearbox Software can be found at www.gearboxsoftware.com.

About Twentieth Century Fox

A recognized industry leader, Twentieth Century Fox Licensing and Merchandising licenses and markets properties worldwide on behalf of Twentieth Century Fox Film Corporation, Twentieth Television and Fox Broadcasting Company, as well as third party lines. The division is aligned with Twentieth Century Fox Television, one of the top suppliers of primetime entertainment programming to the broadcast networks.

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