LucasArts Announces Agreement with Day 1 Studios to Create New Next-Generation Entertainment Franchise

SAN FRANCISCO, CA - August 8, 2006 - LucasArts today announced an agreement with Day 1 Studios to develop a new intellectual property for release on next-generation console platforms. Emphasizing ground-breaking gameplay, and focused on interactivity that is only possible with next-generation platforms, Day 1 Studios plans to leverage its proprietary technology to deliver a revolutionary gaming experience.

"LucasArts is determined to deliver outstanding new ideas to next-generation consoles, and our partnership with the great people at Day 1 Studios creates another opportunity for us to bring innovation and creativity to the market," said Peter Hirschmann, Vice President of Product Development at LucasArts. "The phenomenal technology created by Day 1 directly affects gameplay in extremely innovative ways- and it perfectly complements the engaging story and intriguing characters you'd expect of a LucasArts title."

"We wanted to work with a publisher who would set the bar sky-high," said Denny Thorley, President of Day 1 Studios, "It's a privilege to work with the creative minds behind some of the most successful franchises in entertainment history, and we are inspired by the opportunity to work with LucasArts on their first entirely new property specifically for next-generation consoles."

LucasArts and Day 1 Studios will announce product details at a future date.

About Day 1 Studios

Day 1 Studios is a premier independent developer whose vision is to create revolutionary, interactive entertainment through the application of superior design, artistic, and technical processes. Day 1 Studios created and developed the award winning ``MechAssault" series for Microsoft and Xbox Live. Day 1 is currently developing multiple products for next-generation platforms at their studios in Chicago, IL and Hunt Valley, MD. Additional information about Day 1 Studios can be obtained at www.day1studios.com.

About LucasArts

LucasArts, a Lucasfilm Ltd. company, is a leading developer and publisher of interactive entertainment software worldwide for video game console systems, computers and the Internet. Based in San Francisco, Calif., as well as on the Internet at www.lucasarts.com, LucasArts was created in 1982 by George Lucas to provide an interactive element to his vision of a state-of-the-art, multifaceted entertainment company.

Lucasfilm Ltd. is one of the world's leading film and entertainment companies. Founded by George Lucas in 1971, it is a privately held, fully integrated entertainment company. In addition to its motion picture and television production operations, the company's global activities include Industrial Light & Magic and Skywalker Sound, serving the digital needs of the entertainment industry for visual effects and audio post-production; and Lucas Licensing, which manages the global merchandising activities for Lucasfilm's entertainment properties. Additionally, Lucas Online creates Internet-based content for Lucasfilm's entertainment properties and businesses. Lucasfilm's motion picture productions include five of the 20 biggest box office hits of all time and have received 19 Oscars and 53 Academy Award nominations. Lucasfilm's television projects have won 12 Emmy Awards. Lucasfilm Ltd. is headquartered in San Francisco, Calif.

For more information, contact:

Adam Kahn

LucasArts

415/746-8011

akahn@lucasarts.com