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SEGA® ACQUIRES PREMIER U.K. DEVELOPER

LONDON (April 3, 2006) – SEGA Holdings Europe Ltd., today announced that it has acquired the multi award-winning development studio, Sports Interactive. Founded in 1994 by Paul and Oliver Collyer and operating from offices in Islington, North London, the brothers are the talented creators behind the hugely successful Football Managerä series. With only two titles from the franchise released so far, Football Managerä has sold in excess of 1.5 million copies to become the second fastest selling PC game of all time in the U.K.

This new deal highlights SEGA’s emphasis on Western development as part of its long-term strategic vision. In 2005, SEGA also purchased development studio The Creative Assembly.

“Football Manager is an extremely successful brand for SEGA and one of the most significant titles for our European line-up,” commented Naoya Tsurumi, CEO, SEGA Europe Ltd. & SEGA of America, Inc. “This acquisition illustrates that we are achieving our objectives and have our strategic planning up and running. Although we still have a lot more to do, we feel that this is yet another huge step towards strengthening our standing within the European market.”

“We acquired Sports Interactive because SEGA has the utmost respect for the Collyer’s, Miles Jacobson and the Sports Interactive team for what they have achieved. The company is built up of highly talented individuals that have and continue to produce award-winning titles,” commented Mike Hayes, President & COO of SEGA Europe Ltd. “Our objective, as with The Creative Assembly, is to work with the team and build upon their successes as we strive to produce the highest quality games for our consumers”.

Miles Jacobson, Managing Director of Sports Interactive adds, “From our first meeting with SEGA, it felt like “home”- they really understand development and it’s an honor to get to work with the overwhelming pool of talent from both the development and publishing side. The partnership was right for the next chapter in Sports Interactive’s history, with more releases from the studio this year than ever before. Myself, Ov, Paul and the SI team are all really excited about the future.”

The first titles to be released under the new partnership will be Football Managerä 2006 for Xbox 360™ and Football Manager Handheld for the PSP™ portable entertainment system, both out for release on April 13, 2006.

About SEGA® Holdings Europe Ltd.:

SEGA Holdings Europe Ltd. is the holding company for the European arms of Tokyo, Japan-based SEGA Corporation, a worldwide leader in interactive entertainment both inside and outside the home. Subsidiaries of SEGA Holdings Europe include SEGA Europe Ltd.


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. SEGA Europe’s web site is located at www.sega-europe.com


About Sports Interactive:

Sports Interactive (SI), is the world’s leading developer of sports management simulations for home computers. SI’s pillar titles cover a range of sports, including football (the Football Manager series), ice hockey (the NHL: Eastside Hockey Manager series) and baseball (Out of the Park Baseball). Founded in 1994 and based in Islington, North London. The company’s games have enjoyed an unparalleled history of commercial and critical success, with five of its creations among the UK's Top 20 best-selling PC games of all time. In 2004 SI signed an exclusive five-year agreement with SEGA which will see all games it produces within that period published by the global computer and video games giant. Further information on the company and its games is available from the SI website, www.sigames.com.

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