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Foundation 9 Entertainment Considering Canadian Expansion

Recruitment drive in the Atlantic region will take place to investigate talent resources

LOS ANGELES, CA - August 26, 2005 - Foundation 9 Entertainment, North America's largest independent game developer, announced today that it is considering an expansion in Canada. The company is planning a recruitment drive in the Atlantic region in September to see if there are enough resources available to open a studio in that location.

"I grew up with a lot of talented guys, so I know the talent is there. We just have to find it," says Jeff Vavasour, vice president of Canadian operations and studio head of Foundation 9's Backbone Vancouver location. Vavasour, as well as Foundation 9 Co-President, Andrew Ayre, and COO, Larry Kelly, are all native Newfoundlanders.

Foundation 9 has had an official presence in Canada since 1997, when the Vancouver, BC studio opened under the name of Digital Eclipse. Now known as Backbone Vancouver, that studio has experienced a rapid expansion, growing from around 20 employees to more than 80 over the past two years.

"The gaming industry really has no regional boundaries," said Ayre. "If we're able to find enough talent and resources in the region, we will seriously consider expansion there."

More information on the recruitment drive can be found at www.backboneentertainment.com/atlantic

About Foundation 9 Entertainment

Foundation 9 Entertainment is a premier developer of interactive entertainment products and properties, and the largest independent games developer in North America. With studios in the San Francisco Bay Area, Vancouver, Boston, Los Angeles, Newport Beach, Eugene, and Honolulu, Foundation 9 Entertainment is a development powerhouse, uniquely positioned to maximize the value of entertainment properties across all entertainment genres.

Through its studios and core brands, Backbone, The Collective, Pipeworks, ImaginEngine, and Digital Eclipse, Foundation 9 Entertainment has worked with the largest names in the game publishing world, including Electronic Arts, Activision, Vivendi-Universal, and Take-Two Interactive. The company creates titles for all age groups and all platforms, through licensed and original IP, as well as contract development and its studios have developed more than 250 titles, including more than 50 in 2004 alone. For more information, please visit: www.F9E.com.

MEDIA CONTACTS:

Nicole Tanner

Foundation 9 Entertainment

(510) 547-6101 ext. 457

nicolet@f9e.com

Or

Sean Kauppinen

Kohnke Communications

(415) 777-4000

sean@kohnkecomm.com

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