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YAGER Development Demos AGEIA PhysX Processor at E3

Hardware physics acceleration drives upcoming futuristic combat game

LOS ANGELES, Calif. - May 17, 2005 - At the Electronic Entertainment Expo (E3), AGEIATM Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced that YAGER Development GmbH of Germany will be demonstrating the hardware acceleration of AGEIA's PhysX processor during the E3 exhibition. The demo will offer a first look at YAGER Development's Eye of the Storm (working title), an action game focusing on futuristic guerilla combat in rich, war-ridden urban environments.

The game is being developed using AGEIA's NovodeX physics software for real-world physics and collision detection. Key features of the game will be optimized for AGEIA's PhysX processor, including rigid body simulation and particle effects, as well as fluid simulation. Demos will be shown by appointment only at the AGEIA booth (Kentia Hall #7532).

"AGEIA's NovodeX physics software makes it easy to access the hardware acceleration features of the AGEIA PhysX processor," said Timo Ullmann, managing director, YAGER Development GmbH. "We invite everyone to come by the AGEIA booth and witness for themselves what the future of gaming is all about."

AGEIA's PhysX processor is the world's first dedicated physics processing unit, and is expected to be available on affordable add-in boards by late 2005. As the industry's only multithreaded physics software, AGEIA's NovodeX physics software is uniquely equipped to exploit the advanced capabilities of next-generation consoles, allowing game developers to deliver incredibly lifelike worlds and characters in their game titles. AGEIA's NovodeX is also the only physics software that can harness the power of multiprocessor systems.

"It's very encouraging to see companies such as YAGER Development who are anxious to demonstrate their implementations of AGEIA's PhysX technology," said Andy Keane, vice president of marketing for AGEIA. "It's a fast-moving industry and it's companies like YAGER Development that keep it moving in a positive direction."

AGEIA will be demonstrating games using AGEIA PhysX technology at E3. (By appointment only, Kentia hall, booth #7532.)

About YAGER Development

YAGER Development GmbH is a developer of computer and video games based in Berlin, Germany, and was established in 2000. Yager, the company's first title, was critically acclaimed and was released on Xbox and PC with great success, holding top ten positions across Europe and Australia. Currently the studio has several projects in development for next generation consoles and PC.

About AGEIA

AGEIATM Technologies, Inc. is a fabless semiconductor company and the pioneer of hardware-accelerated physics for games. Its flagship product, the PhysX processor, is the world's first dedicated physics processing unit - a completely new hardware category. The PhysX processor and supporting software deliver the processing horsepower to calculate real-time interactive worlds. Developers can define these worlds to obey the laws of classical physics, or create their own physical laws that make their game a unique, hyper-dimensional experience.

AGEIA seeks to ignite innovation in the games industry by working with leading developers, publishers, add-in board vendors and console manufacturers to deliver the next generation of physically immersive entertainment. Consumer add-in boards and systems equipped with the AGEIA PhysX processor and games that take advantage of the technology will be available in late 2005. For more information visit www.ageia.com.

AGEIA, PhysX and NovodeX are trademarks of AGEIA Technologies, Inc. All other products are trademarks of their respective companies.

AGEIA Media Contact:

Kim Stowe

Reverb Communications, Inc.

(408) 839-8750

kim@reverbinc.com

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