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Lionhead celebrates its 10th anniversary and releases new episode in the studio's video series

Take a Fun-Filled Behind the Scenes Tour of the "Fable 2" Combat System and Meet the Team that has been Creating Games for Over a Decade

London - 30th July, 2007 - Get up close and personal with the team at Lionhead, currently celebrating the studio's 10th Anniversary and working on "Fable 2" for Xbox 360, the highly-anticipated follow up to the best-selling, Xbox® exclusive "Fable®." Episode Two highlights the innovative one-button combat system that gamers will experience in the sequel. Slated for a 2008 release, "Fable 2" represents the studio's 10-year dedication to creating some of the best and most beloved video games in the industry.

"This is a very exciting time for us," said Peter Molyneux, managing director of Lionhead Studios. "Ten years in this industry is no small feat. We have a great team that is committed to pushing the limits of what we can do with today's technology; ten years and counting."

With the release of Episode Two, listen to Molyneux and the rest of the Lionhead team tell comical anecdotes about their "real-life" combat encounters and meet an eclectic "sword" master whom the studio hired to demonstrate how "real sword fighting is done." Strangely enough, several members of the Lionhead team own life-size metal weapons, which allowed for daily parking lot meetings and additional comedic relief. To round out their focus on combat, fellow UK developer's Lionhead and Rare played an intense, yet good-natured game of football, where there was no shortage of fun and/or combat.

With more episodes to come, look for continued behind the scenes tours of "Fable 2." Get a sneak peek inside the game, as well as get to know the people behind the action. Being a hero or heroine, fighting, questing and adventuring are central to the "Fable" experience. With the upcoming release of "Fable 2," gamers will be one step closer to fulfilling their dreams of being good or evil; getting married or remaining single; and finding out what it means to experience unconditional love in the world of "Fable."

Every choice continually defines who the character becomes in "Fable 2," allowing players to truly live the life they choose.

Check out Episode Two, at www.lionhead.com.

Happy Anniversary Lionhead!

- ends -

For more information, please contact:

Kate Szlendak / 0118 909 5334 / v-kaszle@microsoft.com

Notes to editors:

For screen shots go to www.lionhead.com

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox® and Xbox 360 video game systems, the Windows® operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows ( http://www.microsoft.com/games), including such franchises as "Age of Empires®," "Flight Simulator" and "Zoo Tycoon®"; Xbox and Xbox 360 ( http://www.xbox.com), including such games as "Gears of War" and franchises such as "Halo," "Fable®," "Project Gotham Racing®" and "Forza Motorsport"; and MSN® Games ( http://www.games.msn.com), the official games channel for the MSN network and home to such hits as "Bejeweled" and "Hexic®."

About Xbox 360

Xbox 360 is the most powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming network and unique digital entertainment experiences that revolve around gamers. Xbox 360 is expected to have a catalog of 160 high-definition games by the end of 2006 and to be available in nearly 40 countries by the end of 2007. More information can be found online at http://www.xbox.com/xbox360.

About Xbox Live

Xbox Live is the first and only unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox Live connects millions of members across nearly 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox Live Arcade, free and premium playable game demos, music videos and movie trailers, as well as new game levels, characters and vehicles for all their favorite retail games. More information can be found online at http://www.xbox.com/en-us/live.

About Microsoft

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

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