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Epic Games and AGEIA Extend “Unreal” Partnership

Leading developer to support AGEIA’s physics processing unit

SAN FRANCISCO, Calif. - March 8, 2005 - At the Game Developer Conference, AGEIATM Technologies, Inc., a company dedicated to delivering pervasive interactive reality to next-generation games, today announced that Epic Games will support AGEIA's PhysXTM chip, the world's first dedicated physics processing unit (PPU). One of the world's leading developers of cutting-edge computer and video games, Epic has integrated AGEIA's NovodeXTM Physics SDK into its award-winning Unreal® Engine and announced the integration of AGEIA's NovodeXTM Physics SDK and support for AGEIA's PhysX chip in Epic's Unreal Engine 3. PhysX will be the first dedicated physics processing unit to be used in next-generation game platforms.

NovodeX is the only SDK that is equipped for the future of hardware-accelerated physics and meets the needs of the next generation in multiprocessor PCs and game consoles.

Tim Sweeney, founder and lead programmer of Epic Games comments, "We've been using the NovodeX Physics SDK with the Unreal Engine 3 for the past year and it has added some awesome effects. It's going to be exciting to see what NovodeX can do once the PhysX chip hits the market."

AGEIA's PhysX chip defines an entirely new category of processor: the physics processing unit (PPU). Coupled with the NovodeX Physics SDK, the PhysX chip provides cost-effective hardware acceleration which unleashes universal collision detection, rigid body dynamics, soft body dynamics, fluid dynamics, smart particle systems, clothing simulation, soft-body deformation with tearing, and brittle fracturing for destruction of objects in gaming environments.

"Epic's Unreal Engine is already legendary within the industry, and we believe that our technology will further support Epic's aim to empower global developers to deliver outstanding content for next-generation hardware," said Dr. Manju Hegde, CEO and chairman of AGEIA. "Together, AGEIA and Epic are determined to re-ignite the passion and creativity of game developers and use pervasive interactive reality to create a compelling gaming experience."

About AGEIA

AGEIATM Technologies, Inc. is a fabless semiconductor company dedicated to delivering pervasive interactive reality to next-generation games. Its flagship product, the PhysX chip, is the world's first dedicated Physics Processing Unit (PPU) - a completely new hardware category that bridges the gap between static virtual worlds and responsive physical reality. The PhysX chip allows developers to use active physics-based environments for a more life-like entertainment experience. For more information visit www.ageia.com.

About Unreal Engine 3

The award-winning Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset. Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3's new toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at www.unrealteachnology.com.

About Epic Games

Epic Games Inc., based in Raleigh, NC and established in 1991, is a developer of cutting-edge computer and video games. The company is best known as the creator of hit PC 3D action games Unreal and Unreal Tournament, both award-winning blockbuster hits having each sold more than one million copies. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including, 2002 Console Game of the Year winner, Tom Clancy's Splinter CellTM from Ubi Soft; PC Gamer's 2000 Game of the Year, Deus Ex from Ion Storm/Eidos; America's Army: Operations, from the United States Army, and Harry Potter and the Sorcerer's Stone (PC) from Electronic Arts. Additional information can be obtained through Epic's Web site at www.epicgames.com.

Unreal is a registered trademark of Epic Games Inc. All rights reserved. All other products mentioned are trademarks of their respective companies.

Media Contacts:

Kim Stowe

Reverb Communications, Inc. for AGEIA

(408) 839-8750

kim@reverbinc.com

Nicola Kirby

Little Brown Dog for Epic Games

+44 (0) 1372 818 776

kirby@littlebrowndoggy.com

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