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FOUNDATION 9 ENTERTAINMENT EXPANDS WITH NEW STUDIO

LOS ANGELES, CA – Feb. 6, 2006 – Foundation 9 Entertainment, the largest independent videogame developer in North America, in collaboration with techPEI, announced today that it is opening a new studio in Canada. The new studio will be located in Charlottetown, Prince Edward Island and aims to employ approximately 20 people by the end of 2006.

“Foundation 9 continues to grow at a pace that outstrips the rest of the gaming industry,” says Co-President Andrew Ayre. “This latest studio not only gives us additional resources to make great games, it also brings a thriving company to a region of Canada keen for economic growth in the technology sector.”

techPEI, a government corporation charged with development of the technology industry in Prince Edward Island, specifically targeted Foundation 9 Entertainment as a growing company in the gaming industry and offered financial support for the creation of the new studio to help cover set-up and ongoing development costs.

"Not only is there an abundance of untapped talent out there, but the government support makes our costs competitive with overseas solutions,” says Jeff Vavasour, VP of Canadian Operations. “We're gratified to be able to offer these employment opportunities domestically. It’s a win-win.”

The studio in Charlottetown will carry the brand of Backbone Entertainment and will have the capabilities to develop for all platforms, including next generation consoles. Backbone Charlottetown will be the seventh studio in the Foundation 9 family, joining existing studios in Newport Beach, Emeryville, Eugene, Vancouver, Boston and Hawaii.

Backbone Charlottetown is expected to be up and running by the beginning of March.

About Foundation 9 Entertainment
Foundation 9 Entertainment is a premier developer of interactive entertainment products and properties, and the largest independent games developer in North America. With studios in the San Francisco Bay Area, Vancouver, Boston, Newport Beach, Eugene, Prince Edward Island, and Honolulu, Foundation 9 Entertainment is a development powerhouse, uniquely positioned to maximize the value of entertainment properties across all entertainment genres.

Through its studios and core brands, Backbone Entertainment, The Collective, Pipeworks, ImaginEngine, and Digital Eclipse, Foundation 9 Entertainment has worked with the largest names in the game publishing world, including Electronic Arts, Activision, Vivendi-Universal, and Take-Two Interactive. The company creates titles for all age groups and all platforms, through licensed and original IP, as well as contract development and its studios have developed more than 300 titles, including more than 40 in 2005 alone. For more information, please visit: http://www.F9E.com.

About techPEI
Technology PEI Inc. is a Provincial Crown Corporation established to advance the growth and development in Prince Edward Island's technology sector. The mandate is to be the lead agency representing the Province of Prince Edward Island in the development of the technology industry in Prince Edward Island. Technology PEI plays a leadership role in the development, use and adoption of information technology for business and community in Prince Edward Island, Canada.

Technology PEI provides services through five key divisions: Business Investment, Business Expansion, Community and Primary Industry Initiatives, Labour Force Development, and Policy and Planning.

For more information, please visit http://www.techpei.com.

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