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SEGA Signs Obsidian Entertainment To Develop Alien Title For Next-Generation Systems

Role-Playing Game to be Based on Critically-Acclaimed Motion Picture Franchise

SAN FRANCISCO & LONDON (December 11, 2006) - SEGA® of America Inc. and SEGA® Europe Ltd. today announced that Obsidian Entertainment will create a role-playing game based on the Alien film franchise with license from Twentieth Century Fox Licensing & Merchandising. This title will be developed for the next-generation systems and the PC.

Obsidian Entertainment draws upon their wealth of design knowledge creating successful games such as the best-selling Star Wars: Knights of the Old Republic II: Sith Lords and the award-winning Neverwinter Nights 2 to bring the Alien franchise to role-playing gamers for the first time. The role playing game will build upon the distinctive look and feel of the original films while utilizing next-generation technology to create an entirely different and unique Alien experience.

"With Obsidian Entertainment's development pedigree, they were our first choice to bring the Alien franchise to the RPG universe," said Simon Jeffery, President and COO, SEGA of America, Inc. "They are the only developer for us that could effectively combine the Alien mythology with compelling RPG gameplay to create the ultimate Alien experience."

"We are thrilled to be working with the great production and publishing teams at SEGA to deliver the ultimate in-depth Alien experience to gamers worldwide," said Feargus Urquhart, CEO of Obsidian Entertainment. "Building an epic RPG with a license as heralded as the Alien franchise is truly a great honor."

Since its 1979 debut, Alien and its three sequels have grossed more than $557 million worldwide, garnering numerous awards, including two Academy Awards. In 2002, Alien was deemed "culturally significant" by the United States Library of Congress and was selected for preservation in the National Film Registry. For more information, please visit www.sega.com/aliens or the SEGA FTP site at http://segapr.segaamerica.com/

About SEGA® of America

SEGA of America, Inc. is the American 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. SEGA of America's Web Site is located at www.sega.com

About SEGA® Europe

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 Obsidian Entertainment

Obsidian Entertainment is an entertainment software development company passionately dedicated to making high quality, next generation games for PC and console systems. Obsidian was founded in 2003 by five game development veterans who've produced, programmed, and/or designed award-winning role playing games for a variety of platforms over the last 15 years. The five founders are: Feargus Urquhart, Chris Parker, Darren Monahan, Chris Avellone and Chris Jones. Many of Obsidian's talented employees have worked on award winning products for organizations such as Black Isle Studios, Blizzard Entertainment, Electronic Arts, Neversoft, and others. Obsidian Entertainment's Web site is located at www.obsidian.net.

About Twentieth Century Fox

A recognized industry leader, Twentieth Century Fox Licensing and Merchandising licenses and markets properties worldwide on behalf of Twentieth Century Fox Film Corporation, Twentieth Television and Fox Broadcasting Company, as well as third party lines. The division is aligned with Twentieth Century Fox Television, one of the top suppliers of primetime entertainment programming to the broadcast networks.

Contacts:

FOR SEGA

Steve Groll

SEGA of America, Inc.

415-701-4124

steve.groll@segaamerica.com

Caroline Capers

Access Communications

415-844-6246

ccapers@accesspr.com

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