Author: SEGA

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LONDON & SAN FRANCISCO (March 23, 2006) - SEGA of America, Inc. and SEGA Europe, Ltd. today announced a new partnership with Obsidian Entertainment, Inc., an entertainment software development studio based in Orange County, CA. Under the terms of the worldwide deal, SEGA and Obsidian will collaboratively develop an original role playing game (RPG) for PC, PlayStation3 (PS3) and the Xbox 360TM.

The deal signifies SEGA's continuing drive to produce high-quality Western content for current and next-generation consoles. Obsidian, best known for the hugely popular RPG Knights of the Old RepublicTM 2: The Sith Lords, is also currently working on the much-anticipated sequel to Neverwinter NightsTM.

"The development team at Obsidian has 'proven track record' stamped all over it," said Simon Jeffery, President and COO, SEGA of America, Inc. "When SEGA decided to create a fresh and captivating RPG franchise for new generations of hardware, we immediately knew who we wanted to work with."

"We are excited to be working with a great publisher like SEGA as they are willing and excited to launch new and visionary IP on next generation consoles," said Feargus Urquhart, CEO of Obsidian Entertainment, Inc. "At Obsidian, our focus is to make exceptional games and we see SEGA as a true partner in achieving that goal for our next epic 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 Secret Level, Silicon Knights, Bizarre Creations, Monolith Productions (Condemned: Criminal OriginsTM), and Pseudo Interactive (Full AutoTM). SEGA also acquired development powerhouse The Creative Assembly (Total War series) in 2005.

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, Inc 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.