SEGA ANNOUNCES SONIC RIVALS 2 FOR THE PSP SYSTEM

Sonic and His Rivals Return in an All-New Experience on the PSP System

SAN FRANCISCO & LONDON (June 20, 2007) – SEGA® of America, Inc. and SEGA® Europe Ltd. announced today that Sonic Rivals™ 2 is in development for the PSP® (PlayStation®Portable) system. Building upon the success of Sonic Rivals™, Sonic Rivals 2 will ship in the fall of 2007.

The sequel to Sonic’s 2D action platformer, exclusively developed for the PSP system, features a revamped rival “jostling” gameplay system for tighter head-to-head competition. A brand new Battle mode allows two players to jump into six different multiplayer challenges by sharing just one disc using the PSP system’s Wi-Fi function. Rivalry is even further improved with upgraded power-ups and range weapons allowing players to attack or defend themselves regardless of their position.

Miles “Tails” Prower and other new characters have been added to the mix and players can now enjoy each level at their own pace in the new single-player Free play mode. Each character in the game will also have their own unique signature moves that fit their varied personalities.

Additionally, Card trading and collection in Sonic Rivals 2 has also been revamped with 150 more collectable cards enabling player to customize characters with new track suits, unlock PSP backgrounds, and unlock Cup Circuits.

About SEGA® of America, Inc.:

SEGA® of America, Inc. is the American 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. SEGA of America’s web site is located at www.sega.com

About SEGA® Europe Limited:

SEGA Europe Limited is the European Distribution arm of Tokyo, Japan-based SEGA Corporation, and a worldwide leader in interactive entertainment both inside and outside the home. The company 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.