SEGA ANNOUNCES BIOWARE WILL CREATE SONIC ROLE PLAYING GAME FOR THE NINTENDO DS

SAN FRANCISCO & LONDON (June 21, 2007) -- SEGA® of America, Inc., SEGA® Europe, Ltd., and Canada-based developer studio BioWare® Corp. today announced a partnership to create a new video game based on the classic SEGA flagship icon Sonic The Hedgehog. The exact name of the game is undetermined, and it will ship in 2008.

"BioWare is one of the hottest names in RPG development in the world," said Simon Jeffery, President and COO, SEGA of America, Inc. "Everyone at SEGA has huge confidence that Sonic is in the safest of hands, and that BioWare can create the ultimate handheld RPG experience for gamers of all ages."

BioWare is the award-winning independent developer that has created some of the world's best-selling titles including the Baldur's GateT and Neverwinter NightsT series, the 2003 Game of the Year, Star Wars®: Knights of the Old RepublicT and the 2005 RPG of the Year, Jade Empire.T BioWare is currently developing one of the most anticipated next-generation titles of 2007, Mass Effect.T

"We're thrilled to be working with SEGA on Sonic, one of the industry's most enduring and compelling icons," said Greg Zeschuk, president of BioWare. "As huge fans of Sonic ourselves, we're committed to delivering a truly amazing story-driven experience within the Sonic universe, focusing on capturing the character's broad appeal and placing him in a completely original adventure," added Ray Muzyka, chief executive officer of BioWare.

The relationship with BioWare reinforces SEGA's increased emphasis on Western content development for Western audiences. In the past few years SEGA has announced partnerships with developers Bizarre Creations, Gas Powered Games, Monolith Productions, Obsidian Entertainment, Planet Moon Studios, Pseudo Interactive and Silicon Knights. SEGA has also acquired development studios The Creative Assembly, Secret Level and Sports Interactive.

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

About BioWare Corp.:

BioWare Corp®. is an electronic entertainment company which develops computer, console, handheld and online video games focused on rich stories and memorable characters. Since 1995, BioWare® has created some of the world's best-selling titles including the award-winning Baldur's GateT and Neverwinter NightsT series, as well as the 2003 Game of the Year, Star Wars®: Knights of the Old RepublicT. Original BioWare-created IPs include the 2005 RPG of the Year, Jade EmpireT, with next-generation titles Mass EffectT and Dragon AgeT currently in development. With studios in Edmonton, Canada, and Austin, Texas, BioWare is also hard at work on several unannounced projects including a massively multiplayer online game. Media Inquiries can be directed to Matt Atwood (matwood@bioware.com). For more information on BioWare, visit www.bioware.com

*BioWare, BioWare Corp., Mass Effect, Dragon Age and Jade Empire are trademarks or registered trademarks owned by BioWare Corp. in the U.S. and other countries. All other trademarks and copyrights are the property of their respective owners. All rights reserved.