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Foundation 9 Entertainment Ships 300th Title

Company Estimates Its Games Have Generated $1 Billion in Consumer Sales

LOS ANGELES, CA - October 26, 2005 - Foundation 9 Entertainment, Inc., the largest independent game developer in North America, announced today that the shipment of Capcom Classics Collection for PS2 and Xbox marks the company's 300th title. The company's titles have generated $1 billion in consumer sales, according to NPD and company estimates. Titles developed for current generation platforms alone have sold more than 11 million units in the United States.

The company's popular titles include the blockbuster Star Wars Episode III: Revenge of the Sith and Spider-Man 2 for GBA, both selling well over a million units in the United States. Other notable top-selling games include Spyro: Season of Ice for Game Boy Advance, Midway Arcade Treasures for multiple platforms, and Godzilla: Destroy All Monsters Melee, each grossing over $15 million in U.S. sales.

"We are extremely proud of the work our development studios produce, and the numbers firmly reinforce the tremendous positive impact we have on the interactive entertainment industry," said Andrew Ayre, founding partner and co-president of Foundation 9 Entertainment, Inc.

According to a recent Price Waterhouse Coopers study, the worldwide video game industry is expected to grow at a compound annual growth rate of 16.5%, and 12.9% in the U.S. through 2009.

"We are growing faster than the industry in general," adds founding partner and CEO Jon Goldman, "and we look forward to helping publishing partners, content licensors and retailers earn tens and hundreds of millions of dollars in the years ahead."

Foundation 9 is currently working on four next-generation projects. The company has also recently announced a recruitment drive to pursue additional talented individuals for their development studios Backbone Vancouver, Backbone Emeryville, Pipeworks and The Collective.

Through its recent mergers of Backbone, The Collective, Pipeworks, ImaginEngine and Digital Eclipse, the newly formed Foundation 9 Entertainment has more than 30 projects in development across all of its studios. The company is active on all platforms for all ages.

About Foundation 9 Entertainment, Inc.

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 300 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

Eric Gonzalez

Kohnke Communications

(415) 777-4000

eric@kohnkecomm.com

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