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KOCH MEDIA SELECTED AS DISTRIBUTION PARTNER FOR FERRARI CHALLENGE IN ITALY

Mayfair, London - 17th July 2007 - System 3 appoints Koch Media as exclusive distribution partner for the eagerly anticipated Ferrari Challenge video game. The deal secures Koch Media's distribution network for the home territory of the Ferrari brand.

Koch Media were selected from a large list of suitors because of their representation in many of the key markets and for their demonstrable understanding of the importance of this video game launch. System 3's marketing plans, which are currently being kept closely under wraps, include many local events taking place across Europe culminating in the largest consumer marketing campaign the company has ever undertaken.

The game has been developed under close scrutiny by the Ferrari factory and its technicians and that game is set to be the most-loyal use of the Ferrari brand and vehicles in a video game to date. Koch's understanding of the importance of the Ferrari license to the Italian market will prove a huge advantage during the pre-launch marketing. The romance and love by the Italian public for the Ferrari brand will see Italy as a key launch territory for the eagerly anticipated game.

System 3's CEO, Mark Cale said, "Italy is understandably on eof the most-important territories in the world for the Ferrari brand. The distribution reach of Koch media was never in question, but we needed a company that understands this marketing strategy and has the resource to realise our plans. Koch has shown the level of commitment that we were looking for and we're delighted to be working with them on this key launch".

Koch Media srl Managing Director, Stephan Unser said, "The most-famous brand in automobile world and an excellent development team make Ferrari Challenge set to be a huge hit in Italy and we are proud to be part of the worldwide launch, The Ferrari brand is so huge in Italy that we're sure the game will be welcomed by gamers and fans and lovers of racing world."

The Ferrari Challenge video game will be published on an array of gaming consoles including; PlayStation® 3, PlayStation® 2, Nintendo Wii, PlayStation®Portable and Nintendo DS.

This release was issued by PEPPERMINT M, a marketing company specialising in the mobile entertainment, toy, video games and licensing sectors.

For more information see: www.peppermintm.co.uk

System 3 Contact:

Simon Jones, Peppermint M Ltd

Tel: +44 (0) 7889 162939,

Email: simon.jones@peppermintm.co.uk Koch Media Contact:

Tania Rossi, Pr Manager. Koch Media

Tel: +39 02 93466917

Email: T.Rossi@kochmedia.com

-- About System 3 Software --

System 3 has been part of the fabric of the video game industry since 1982 and is widely known as a company of innovation with a strong emphasis on creating compelling gameplay. The company, one of the last remaining independents, operates two key brands; System 3 - a premium game publisher and Play It - a budget game publisher.

The company holds video game rights for properties including; Ferrari, Gottlieb, Williams and Epyx.

System 3 produces game for the key hardware platforms including; Nintendo Wii, Nintendo DS, PlayStation®2, PlayStation®3, PlayStation®Portable and Windows®-based personal computers.

The company website is located at: www.system3.com

-- About Koch Media --

Koch Media, founded by Franz Koch and Klemens Kundratitz in 1994, is a leading producer and marketer of digital entertainment products in Europe. The focus is on the publishing and licensing of software products, games and DVD movies. The company's own sales activities, marketing and distribution extend throughout Europe, and it has formed strategic alliances with a number of software and games manufacturers: ACDSystems, D3Publishing, Digital Publishing, G-Data, JoWooD, Lexware, Namco Bandai, Pinnacle, Sony Online Entertainment, Square-Enix, Sunflowers, Sytem3, etc. Headquartered in Planegg near Munich, Koch Media owns branches in Germany, England, France, Austria, Switzerland and Italy. www.kochmedia.com

Tania Rossi, Pr Manager. Koch Media Italy

t.rossi@kochmedia.com

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