New York, NY - June 27, 2005 - MTV, a division of Viacom Inc. (NYSE: VIA, VIAB), today announced a strategic relationship with Midway Games Inc. (NYSE: MWY), a leading interactive entertainment publisher and developer, to market, jointly sell in-game advertising and collaborate on soundtrack development for three upcoming games. Under the deal, MTV is able to participate in a royalty sharing structure.
The first title shipping under this deal is expected to debut this holiday season with Midway's upcoming high-octane arcade racing video game, L.A. RUSHTM. In addition to the innovative marketing alliance to launch the game, LA RUSHTM will feature MTV branding throughout the game world with the crew from the hit MTV show, "Pimp My Ride," West Coast Customs. The soundtrack contains over 75 songs from over 20 artists including Twista, Lil' Kim, Big Boi and DJ Rap. The other two games under this deal will be announced at a later date.
"Gaming is an essential part of the every day lives of our audience and MTV is where game publishers turn to launch their biggest titles," stated Jeff Yapp, EVP, MTV Networks Music and LOGO Enterprise Group. "This unique alliance with Midway allows us to move beyond a traditional advertising relationship and become true partners in the success of these titles. We will integrate our expertise in music, television, and online media to help one of the video game industry's top publishers deliver exciting, new, culturally resonant games."
"MTV is a key partner in terms of overall marketing reach; their programming truly defines pop culture worldwide. Together, we will work on finding innovative ways to integrate interactive entertainment, media and programming," said David Zucker, president and CEO, Midway. "By combining forces with MTV, we ensure that great titles like L.A. RUSH, which are targeted to passionate gamers, get the maximum amount of exposure."
Sumner M. Redstone, who owns a majority of the voting shares of both MTV and Midway, said: "I am delighted that Midway is the first to enter into this exciting new business model, which harnesses the power of MTV's brands, intellectual property and promotional engine to Midway's top-rated games development and publishing abilities. And I am also delighted to report that the independent special committee of Viacom's board which oversees relationships between Viacom and Midway recommended board approval, and that this recommendation was accepted by the full Viacom board."
Headquartered in Chicago, IL with offices in San Diego, CA, Seattle, WA, Austin, TX , Los Angeles, CA, Munich, Germany and London, UK, Midway Games Inc. (NYSE: MWY) is a leading developer and publisher of interactive entertainment software for major video game systems. More information about Midway can be obtained at www.midway.com
MTV Networks owns and operates the cable television programming services MTV: Music Television, MTV2, mtvU, Nickelodeon/Nick at Nite, TV Land, VH1, CMT: Country Music Television, Comedy Central, and Spike TV, as well as The Digital Suite from MTV Networks, a package of thirteen digital services, all of which are trademarks of MTV Networks. MTV Networks also operates and offers joint ventures, licensing agreements and syndication deals whereby its programming can be seen worldwide.
This press release contains forward-looking statements concerning future business conditions and the outlook for Midway Games Inc. (the "Company") based on currently available information that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of these risks and uncertainties, including, without limitation, the financial strength of the interactive entertainment industry, dependence on new product introductions and the ability to maintain the scheduling of such introductions, the upcoming console platform transition and other technological changes, dependence on major platform manufacturers and other risks more fully described under "Item 1. Business - Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2004, and in the more recent filings made by the Company with the Securities and Exchange Commission! .