DESTINEER SHIPS SWORD OF THE STARS® TO RETAILERS NATIONWIDE

Highly Anticipated Game First Within Genre to Support Multiplayer Functionality

MINNEAPOLIS, MN, August 23, 2006 – Multiplayer hits the 4X PC game genre for the first time ever, as Destineer announces today that Sword of the Stars for the PC has shipped to distributors and retailers and will begin arriving on store shelves across North America later this week. Developed by Kerberos, the respected development house whose key members were instrumental in producing both Homeworld and Homeworld: Cataclysm, Sword of the Stars is an engaging new title that injects new life into the 4X gaming category.

“With the first-ever multiplayer functionality enabling massive battles across intergalactic space, Sword of the Stars is an evolutionary next step in the 4X category,” said Paul Rinde, CEO of Destineer. “Developed by a team whose pedigree includes some of the most successful 4X games available, and backed by fully realized feature set that includes an original and deep storyline, distinct alien races with equally distinct abilities, and a creative and adaptive AI, Sword of the Stars is the long-awaited game for many fans.”

Developed by key members from the Homeworld and Homeworld: Cataclysm team, Sword of the Stars offers players a breakthrough gaming experience by incorporating for the first time ever multiplayer capability in a 4X game. Players ‘eXplore’, ‘eXpand’, ‘eXploit’, and ‘eXterminate’ their way across the galaxy and can now do so against other players, the result of which are epic online multiplayer battles across deep space.

Sword of the Stars brings a dynamic mix of strategic turn-based empire building and real-time tactical combat resolution and is designed to be both inviting to the newest 4X gamer and satisfying for the most die-hard gaming strategists. With stunning graphics, a random technology tree and an immersive universe to explore, Sword of the Stars will thrill and delight players as they take control of cosmic empires, alien technologies and vast interstellar armadas.

Sword of the Stars is Rated E 10+ for Everyone 10 and over by the ESRB, and has a suggested retail price of $39.99. Distribution in Europe will begin on September 1 via Destineer’s co-publisher, Lighthouse Interactive.

For more information on Sword of the Stars, please visit www.swordofthestars.com.

About Destineer

Destineer develops and publishes commercial videogames for personal computers and videogame consoles, and it creates PC-based virtual training systems for military, intelligence and first-responder organizations. Destineer’s games include top-sellers such as Close Combat: First to Fight and John Deere: American Farmer, and it publishes its games under the Destineer, MacSoft, Bold Games, and Atomic Games brands. Destineer is a privately-held corporation headquartered in Minneapolis, MN, with development studios in Minneapolis and Austin, TX. More information is available at Destineer’s website: www.destineerstudios.com.

About Lighthouse Interactive

Lighthouse Interactive is a fast growing publisher of interactive entertainment with offices in Haarlem, The Netherlands and Montreal, Canada. Lighthouse’s titles include the critically acclaimed adventure title "Keepsake," the highly anticipated 4X strategy hybrid "Sword of the Stars," and the revolutionary sim "Ship Simulator 2006". Staffed with industry veterans and with offices in key locations around the world, Lighthouse is a strong alternative for developers looking to bring their products to a worldwide audience.