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SEGA Unveils Sonic Rivals Dashing Onto The PSP(TM) System

Original Sonic Game Offers Lively Head-to-Head Competition

SAN FRANCISCO & LONDON (May 3, 2006) -- SEGA® of America, Inc. and SEGA® Europe Ltd. today announced the development of Sonic Rivals exclusively for the PSP (PlayStation®Portable) system. Sonic Rivals is a head-to-head competition between Sonic and his top rivals, where the gloves are off and winner takes all! Built from the ground-up, the engine allows gamers to rip through tracks in some high-spirited single player and wireless multiplayer action against friends as Sonic returns in a whole new racing-platformer with classic 2D gameplay in true 3D environments for gamers on the go.

What starts as a friendly competition between Sonic and Knuckles quickly intensifies as Shadow and other rivals jump into the action. Sonic Rivals allows gamers to utilize boost moves and power-ups to trip, shove, and vault over each other while hurtling towards the finish line at breakneck speeds. Players will negotiate wildly twisting 3D tracks while avoiding the insidious Dr. Eggman and his myriad of hazardous traps and contraptions.

"Sonic Rivals brings back the classic 2D platform gameplay that started it all, and douses it with vibrant three-dimensional environments," said Scott A. Steinberg, Vice President of Marketing, SEGA of America, Inc. "In this heated rivalry, gamers are tested to prove not only who's the fastest but who has the best head-to-head gameplay strategy."

In Sonic Rivals, gamers can play as one of four different characters from the Sonic Universe, each with separate fast and winding storylines. In addition, the extensive rewards system, which is based on collecting trading cards, allows players to customize their favorite characters. Connect via wireless to race against a friend, and put trading cards on the line for even more multiplayer challenges.

Debuting on the SEGA Genesis in 1991, Sonic The Hedgehog is one of the world's best-selling and most recognizable video game franchises and character. More than 44 million units later, the beloved blue hedgehog celebrates his 15th anniversary this year.

Sonic Rivals is slated for release in Fall 2006 and developed by the Vancouver-based studio of Backbone Entertainment, a division of Foundation 9 Entertainment. For more information on SEGA's Road to E3, please visit www.sega.com/e3. For screenshots and artwork, please visit the SEGA FTP site at: http://segapr.segaamerica.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 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. The SEGA® Europe Ltd. Web site is located at www.sega-europe.com.

Backbone Entertainment
Part of Foundation 9 Entertainment (www.F9E.com), the largest independent game developer in North America, Backbone specializes in developing original and licensed IP for all platforms and creating merchandising opportunities in diversified entertainment genres. Backbone is based in Emeryville, CA, Vancouver, BC, and Charlottetown, Prince Edward Island and can be found on the web at: www.backboneentertainment.com.
Backbone, along with The Collective, Pipeworks, ImaginEngine, and Digital Eclipse make up Foundation 9 Entertainment. The company's studios have developed more than 300 titles, including more than 40 in 2005 alone. Foundation 9 Entertainment employs more than 350 employees, and has offices in Newport Beach, Emeryville, Vancouver, Boston, Eugene, Charlottetown and Honolulu. For more information on Foundation 9 Entertainment, please visit: www.F9E.com.

Contacts:
Dana Whitney
One PR Studio
(510) 893-3271
dana@oneprstudio.com

Lynn Daniel
SEGA Europe Ltd.
+44 (0) 20 8995 3399
DanielL@soe.sega.co.uk

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