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Radica Games Limited Announces License Agreement with Codemasters ® and Sega® Toys

19th January 2005, United Kingdom - Radica Games Limited (NASDAQ: RADA) announced today a worldwide licensing agreement with Codemasters Software Co Ltd and Sega Toys (a subsidiary of Sega® corporation) to manufacture and distribute Arcade LegendsTM Sega® Mega DriveTM Sensible SoccerTM Plus. The multi-game unit will plug directly into a TV set and allow players to play three classic games developed by Sensible Software, including Sensible SoccerTM, Cannon FodderTM and Mega-Lo-ManiaTM.

The product is expected to hit retail shelves in May 2005 and will retail for approximately £29.99. The game is designed to replicate the high quality of the original Sega Mega Drive versions and will feature two controllers, enabling one or two player gameplay.

Pat Feely, Radica's President and CEO said, "Sensible Software was one of the most important video game development houses of the nineties, creating fun, highly playable games and building a huge following. By re-launching their classic titles in an accessible plug and play format, Radica will be appealing to those original fans and taking a fantastic gaming experience to a whole new audience."

Matt Davies, Codemasters' Business Development Manager, commented: "This is a great package of classic titles from the Sensible Software catalogue, which Codemasters acquired the rights to some years ago. Each game featured represents some of the most playable, original games of the 1990s and we're thrilled to see them brought back to life thanks to Radica's plug-and-play games system."

About Radica Games Limited

Radica Games Limited (Radica) is a Bermuda company headquartered in Hong Kong (NASDAQ: RADA). Radica is a leading developer, manufacturer and distributor of a diverse line of electronic entertainment products including electronic games, youth electronics, video game accessories and high-tech toys. Radica has subsidiaries in the U.S.A., Canada and the U.K., and a factory in Dongguan, Southern China. More information about Radica can be found on the Internet at www.radicagames.com.

About Codemasters®

Codemasters is a leading developer and publisher of best-selling interactive entertainment products for a global audience on current and future gaming platforms and channels. Established in 1986, the company's dominant brands include Colin McRae Rally, TOCA Race Driver, LMA Manager, and Operation Flashpoint. The company is headquartered in Southam, Warwickshire UK and maintains European operations in Germany, France, Spain, and Benelux. The company has its US headquarters in New York. More information about the company and its products is available online at http://www.codemasters.com

About Sega® Corporation

Sega® Corporation is a worldwide leader in interactive entertainment both inside and outside the home, encompassing consumer business, amusement machine sales and amusement center operations. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment, Inc. Sega® Corporation's website is located at http://sega.jp.

For further information or any images please contact:

Chocolate Communications

Sophie Heximer, Maritsa Petrides or Jessica Rowntree

+44 (0)20 8322 1922

radica@chocolatecom.co.uk

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