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Japanese Online Game Powerhouse GungHo Supports AGEIA PhysX Technologies

AGEIA PhysX simulation offers cost-saving alternative to motion capture and animation

MOUNTAIN VIEW, Calif. - June 23, 2005 - AGEIATM Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced that Japanese online game specialist GungHo Online Entertainment is adopting AGEIA PhysXTM technologies for its titles, including the upcoming Rondo Projects. GungHo is using the simulation capabilities of AGEIA NovodeX physics software as a cost-saving alternative to expensive motion-capture and labor-intensive 3D animation. AGEIA PhysX technology is being used to create online worlds that offer virtually unlimited interactivity.

"AGEIA's PhysX technologies allow us to replace simple iterations of pre-defined movements and reactions created with animation with physically-enabled moving, interactive worlds," said Seiichi Hori, CTO of GungHo Online Entertainment. "With NovodeX, we keep our costs down, improve our quality, and ultimately deliver a better experience to our online communities than ever before."

GungHo manages the largest online game community in Japan, while developing its own content with a range of titles appealing to a variety of users. GungHo games have captured a large and faithful customer base by offering compelling characters, blending of 2D and 3D elements, and active use of community elements.

"GungHo was one of the first game companies to anticipate and capitalize on the broadband boom in Japan, and the strength of their content has earned them a dominant position in this market," said Andy Keane, vice-president of marketing at AGEIA Technologies. "GungHo's adoption of AGEIA PhysX technologies gives them powerful new tools for maintaining their leadership and expanding the possibilities of online gaming."

About GungHo Online Entertainment

GungHo was launched in August 2002 as a provider of online game services. "Inspire Movement" conveys the essence of GungHo's mission to provide customers with entertaining and moving experiences based on the key concepts of "Challenge" and "Creation." GungHo has successfully established a stable revenue base from its online game services, supported by a large subscription base and its business experience gained from operating the largest online game community in Japan.

About AGEIA

AGEIATM Technologies, Inc. is a fabless semiconductor company and the pioneer of hardware-accelerated physics for games. Its flagship product, the PhysX processor, is the world's first dedicated physics processing unit - a completely new hardware category. The PhysX processor and supporting software deliver the processing horsepower to calculate real-time interactive worlds. Developers can define these worlds to obey the laws of classical physics, or create their own physical laws that make their game a unique, hyper-dimensional experience.

AGEIA seeks to ignite innovation in the games industry by working with leading developers, publishers, add-in board vendors and console manufacturers to deliver the next generation of physically immersive entertainment. Consumer add-in boards and systems equipped with the AGEIA PhysX processor and games that take advantage of the technology will be available in late 2005. For more information visit www.ageia.com.

AGEIA Media Contact:

Kim Stowe

Reverb Communications, Inc.

(408) 879-7466

kim@reverbinc.com

Erika Powelson

Powelson Communications

Public Relations Strategy & Implementation

831-424-1811

erika@powelsoncommunications.com

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