SEGA PARTNERS WITH GAS POWERED GAMES TO CREATE ORIGINAL ROLE-PLAYING GAME FOR THE PC

For Immediate Release

LONDON & SAN FRANCISCO (May 10, 2007) - SEGA® of America, Inc. and SEGA® Europe, Ltd. today announced a new partnership with Gas Powered Games, an entertainment software development studio based in Redmond, WA. Under the terms of the worldwide agreement, SEGA and Gas Powered Games will collaboratively develop an original role-playing game for the PC.

"SEGA is continuing its march forward in building a strong western developed portfolio of games," said Simon Jeffery, President and COO, SEGA of America, Inc. "Partnering with well established and visionary game creators such as Chris Taylor and his talented group at Gas Powered Games aligns perfectly with our strategy."

Gas Powered Games was founded in 1998 by acclaimed game designer and industry visionary Chris Taylor. Best known for the hugely popular Dungeon Siege series that has sold in excess of 1.7 million copies worldwide, Gas Powered Games has a proven pedigree of developing successful role-playing and RTS games. The company's current release, Supreme Commander on the Games for Windows platform has also received critical acclaim upon launching in February 2007.

"We are excited to be part of SEGA's western development strategy," said Chris Taylor, Creative Director and CEO of Gas Powered Games. "Our focus at Gas Powered Games is to create exciting and visually stunning new worlds coupled with revolutionary game play experiences and we see SEGA as the perfect partner in achieving that goal for our next original RPG."

The deal is the latest in a string of similar announcements from SEGA that underscore the company's increased emphasis on Western content development. Previously, SEGA announced partnerships with developers Obsidian Entertainment Inc. (Alien franchise), and Petroglyph Studios (Universe at War: Earth Assault). SEGA also acquired development powerhouse, The Creative Assembly (Total War series) in 2005, US based developer Secret Level (Golden Axe), and the popular UK developer, Sports Interactive (Football Manager series) in 2006.

About SEGA® Europe, Ltd.

SEGA® Europe, Ltd. is the European Distribution arm of Tokyo, Japan-based SEGA® Corporation, and a worldwide leader in interactive entertainment both inside and outside the home. The company develops 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. The SEGA® Europe, Ltd. Web site is located at www.sega-europe.com.

About SEGA® of America, Inc.

SEGA® of America, Inc. 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 Inc. The SEGA® of America, Inc. Web site is located at www.SEGA.com.

About Gas Powered Games

Gas Powered Games is a leading interactive entertainment company and video game developer. Founded in 1998 by industry veteran Chris Taylor, Gas Powered Games (GPG) is the creator of the award-winning Dungeon Siege and Dungeon Siege II, named "RPG of the Year" by GameSpy and PC Gamer. GPG's current projects include Supreme Commander, a revolutionary real-time strategy game released in February 2007, and several other unannounced projects. Gas Powered Games is located in Redmond, WA. For more information, please visit www.gaspowered.com.

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