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SEGA AND IFONE PARTNER TO BRING CELEBRATED IP’S TO MOBILE PHONES

PRESS RELEASE - FOR IMMEDIATE RELEASE

LONDON - October 7th, 2005 - SEGA Europe Ltd, today are proud to announce their partnership with iFone to launch mobile content across Europe. Under the terms of the deal, iFone will unleash eight of SEGA's gaming titles for download on to mobile phone devices. SEGA Europe has partnered with iFone to establish control of the Europeanmarket whilst working with SEGA Corporation in driving the release strategy to meet the needs of global consumers.

"We have a huge catalogue of timeless IP's that are recognised throughout the world and we are delighted to be working closely with industry leaders, iFone to publish these titles for the mobile market," commented Alan Pritchard, UK Managing Director of SEGA. "We are continually looking at ways to broaden their mass market fan base and what better way than to bring household brands like Sonic to so many mobile users."

"We are thrilled to be working with the SEGA team. Not only do their games lend themselves perfectly to the mobile platform but are brilliant products that have proved a highly compelling gaming experience. This venture with SEGA underlines our commitment to provide big-brand titles that appeal to a wide demographic audience," added Morgan O'Rahilly, CEO of iFone.

Managed by Alan Pritchard, the team at SEGA Europe will work directly with iFone to spearhead their first assault on the mobile gaming market. Darren Newnham, Business Development Manager, is the focal member of the SEGA team, having previously held positions at O2, T-Mobile and 3. Andrew Brennand, Head of Development - Sport and Mobile will head up technical and development support along with Agostino Simonetta, Producer.

Legendary title Sonic The Hedgehog, originally developed for the Mega Drive brings simplicity as well as playability thus lending itself perfectly to the mobile phone gaming platform. Sonic isn't the only SEGA mascot to make the cross platform leap - with Super Monkey Ball Mini-Golf being the first title for release in December under the new collaboration.

For those who can't wait until Wimbledon 2006 for their next tennis fix, SEGA's Virtua Tennis will be smashing its way onto mobile phones, giving gamers the opportunity to practice their forehand. The fourth title from SEGA's stable, SEGA Rally is the globally recognised franchise and will be available for download to your phone in 2006.

Further announcements will be made on the remaining line-up included within this exciting partnership.

NB: This partnership does not include content for I-mode.

About SEGA Europe Ltd®

SEGA Europe Ltd. is the European Publishing arm of Tokyo, Japan-based SEGA Corporation, and a worldwide leader in interactive entertainment both inside and outside the home. 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 Europe. SEGA Europe's web site is located at www.sega-europe.com

About iFone

iFone is a global leader in wireless entertainment, specialising in the development, production and publishing of gaming content for current and future mobile devices. The company operates a worldwide distribution network, live in 50 countries and has strategic partnerships with over a hundred Network Operators. With considerable experience in the deployment of mass-market brands, iFone's product portfolio consists of over 50 titles available for a wide range of handsets in all major languages.

iFone has an excellent reputation for publishing blockbuster games for the mobile platform having already brought Tetris®, Monopoly, Cluedo and Lemmings to the small screen. iFone games are regularly amongst the world's best-selling mobile games www.ifone.com

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