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SEGA APPOINTS EXECUTIVE TO LEAD PRODUCT DEVELOPMENT; ACQUISITION EFFORTS

William Petro joins video game pioneer as Senior Vice President of Product Development

SAN FRANCISCO (September 7, 2005) -SEGA of America, Inc. today announced that William Petro has joined its executive team, where he will assume the position of Senior Vice President of Product Development.

In his role at SEGA, Petro will be responsible for SEGA's new three-pronged development strategy: developing new content internally by drawing from SEGA's unmatched vault of existing IP; increasing focus on acquiring external content through partnerships with standout developers such as Secret Level, Silicon Knights, Sports Interactive, Monolith Productions and Pseudo Interactive; and the acquisition of development studios for future multiplatform growth, such as The Creative Assembly. In addition to product development, Petro will also lead SEGA's A&R (artist and repertoire) efforts, furthering the diversity and innovation of the titles that are brought to market.

"We are extremely excited to have added an industry veteran such as Bill to the SEGA executive team," said Simon Jeffery, President and COO of SEGA of America, Inc. "In addition to leading our new focus on aggressively acquiring new content through partnerships and outright purchases, Bill is the ideal candidate to help in our efforts to continue the development of existing SEGA IP."

Petro brings more than 20 years of product development experience to SEGA of America, including senior positions at major game companies, as well as a programming stint with the National Security Agency. He was responsible for building the $45 million Backyard Sports series for Atari, and worked on the Lands of Lore, Command & Conquer and Blade Runner franchises while at Westwood Studios.

About SEGA® of America:

SEGA of America is the American Publishing arm of Tokyo, Japan-based SEGA Corporation, 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. SEGA of America's web site is located at www.SEGA.com/usa .

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