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Sony Computer Entertainment Enters Into Strategic Licensing Agreement With AGEIA

AGEIA PhysX, the World’s Most Advanced Physics Library, to be Included in Software Development Kit for PS3

Tokyo, July 21, 2005 - Sony Computer Entertainment Inc. (SCEI) announced today that it had entered into a strategic licensing agreement with AGEIA TechnologiesTM, Inc. (AGEIA), a physics tool and hardware developer based in California, U.S.A, effective July 20, 2005. Through this agreement, SCEI obtains sublicensing rights of the AGEIA PhysXTM SDK (also known as NovodeXTM), a physics library developed by AGEIA.

The AGEIA PhysX SDK is the leading next-generation solution for creating compelling in-game physics and has been widely adopted by various game engines, such as the Unreal Engine 3 by Epic Games. Its multi-threaded capability makes the AGEIA PhysX SDK ideally equipped to leverage the power of the Cell processor. The licensing agreement allows for SCEI and AGEIA to optimize the AGEIA PhysX SDK for utilization in PLAYSTATION®3, and will be included in the Software Development Kit for PLAYSTATION 3. Frontline support will be provided by SCEI.

"A licensing agreement with AGEIA is a strategic move for us" said Masa Chatani, corporate executive and CTO, Sony Computer Entertainment Inc. "With AGEIA PhysX SDK provided as part of Software Development Kit for PS3, we believe that numbers of content with entirely new forms of physics expressions optimizing the power of the Cell processor will be developed."

"This agreement between SCEI and AGEIA marks a significant landmark in the development of advanced physics-enabled games," said Manju Hegde, founder and CEO of AGEIA Technologies, Inc. "The capabilities of the AGEIA PhysX SDK combined with the power of the Cell architecture will give developers the tools necessary to introduce dynamic physical properties within games that will leapfrog game interactivity as we know it today."

About Sony Computer Entertainment Inc.

Recognized as the global leader and company responsible for the progression of consumer-based computer entertainment, Sony Computer Entertainment Inc. (SCEI) manufacturers, distributes and markets the PlayStation® game console, the PlayStation®2 computer entertainment system and the PlayStation®Portable (PSP®) handheld entertainment system. PlayStation has revolutionized home entertainment by introducing advanced 3D graphic processing, and PlayStation 2 further enhances the PlayStation legacy as the core of home networked entertainment. PSP is a new portable entertainment system that allows users to enjoy 3D games, with high-quality full-motion video, and high-fidelity stereo audio. SCEI, along with its subsidiary divisions Sony Computer Entertainment America Inc., Sony Computer Entertainment Europe Ltd., and Sony Computer Entertainment Korea Inc. develops, publishes, markets and distributes software, and manages the third party licensing programs for these platforms in the respective markets worldwide. Headquartered in Tokyo, Japan, Sony Computer Entertainment Inc. is an independent business unit of the Sony Group.

PlayStation and PSP are registered trademarks of Sony Computer Entertainment Inc. All other trademarks are the

property of their respective owners.

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