SOFTWARE ON SHOW

PRESS RELEASES 

SEGA LOWERS PRICE ON HARDWARE, SOFTWARE

REDWOOD CITY, Calif. -- (June 4, 1997) --
Sega^TM of America today announced price drops on the Sega Saturn^TM and Sega Genesis^TM video game consoles and on hit Sega Saturn titles as part of a plan to continually offer consumers the best video gaming value. The price drop follows the May 31 completion of Sega's most successful promotions for the Sega Saturn: the "Three Free" game pack-in and the "Buy Two Get One Free" coupon offer.

The new hardware pricing structure is as follows:

Sega Saturn Sega Saturn with Game Sega Saturn Net Link Solution Pack Sega Saturn Net Link Sega Genesis

$149.99 ($50 reduction) $169.99 ($60 reduction) $249.99 ($200 reduction) $ 99.99 ($100 reduction) $ 79.99 ($20 reduction)

Sega also reduced pricing on more than 30 Sega Saturn games into the range of $19.99 - $39.99, including top-ranked titles such as "NiGHTS^TM" "Fighting Vipers^TM" "Virtua Cop^TM2" and "Sonic 3D Blast^TM" Suggested retail pricing for new Sega Saturn games in 1997 will not exceed $49.99.

"As we've said since the beginning of this year, Sega is operating based on its own business plan and goals, with price reductions strategically timed to coincide with our annual product line-up and promotional calendar," said Bernard Stolar, COO, Sega of America. "Our new pricing structure will maintain the momentum we gained with our two previous consumer promotions, which helped boost Sega Saturn software sales up more than 120 percent over first quarter last year."

The worldwide installed base for Sega Saturn has topped 7.5 million, with 1.7 million units in use throughout the U.S. Game sales in 1997 have been boosted by arcade hits translated for Sega Saturn, including "Die Hard^TMArcade" and "Fighters MegaMix^TM" currently the third best-selling next generation game at Electronics Boutique.

The Sega Saturn game line-up for 1997 includes a number of Sega "specialties," from arcade translations to new Sonic titles and authentic racing and team sports games from an all-new Sega Sports^TM product development team. Sega will also debut at the Electronic Entertainment Expo the first-ever console-based networked arcade games, taking home arcade gaming to the next level.

Sega sees strong potential for the Genesis system for first-time gamers. Industry research from the first quarter of 1997 shows the Genesis software-to-hardware tie ratio at 16 games per console, compared to the 8-to-1 ratio for Super Nintendo. Genesis first-party software sales were on the rise, with an eight percent increase in March, which is five percentage points ahead of Super Nintendo in that period.

Several Genesis game pack-in options are currently at retail, including the "6 Pak" and "Sonic Spinball^TM" among others. The Sega Saturn pack-in game offers include "Sega Rally Championship^TM" and "NiGHTS."

Sega of America is the arm of Tokyo-based Sega Enterprises, Ltd., responsible for the development, marketing and distribution of Sega video game systems and software in the Americas. Sega Enterprises Ltd. is a nearly $3.6 billion company recognized as the industry leader in interactive digital entertainment media and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of AmericaÉs World Wide Web site is located at http://www.sega.com.

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
When listening is your most valuable weapon, it is best not to scream. Sega® of America announced today the upcoming release of "Enemy Zero^TM" -- an all new space odyssey for Sega Saturn^TM. "Enemy Zero" is an alien adventure where players must rely on all their senses to kill an attacker they can’t even see. This assault on game senses will be available exclusively for the Sega Saturn and the PC in November.

A game of unprecedented suspense, "Enemy Zero" contains a strong dramatic element that will fill players with heart-pounding terror. With visually stunning 3D graphics using "Truemotion technology," players must use their instincts to find clues, weapons and maps in order to defeat the deadly creature. Since the monster is invisible, gamers must rely on sound to detect its presence.

Using VPS "VEXX Positioning System," players can detect the location of the beast based on the pitch of the tone from the VPS. But, the alien also uses sound to find its prey -- therefore any accidental gunshot or noise can mean instant death to the player.

In "Enemy Zero," players become Laura Lewis, one of seven members of an ill-fated journey aboard the space probe "Vehicle Aki." Upon its return trip to planet Earth the massive vessel is suddenly rocked by an inter-stellar shock wave. Frozen in a deep sleep in their cryogenic chambers, Laura and the crew awaken, unaware of the danger that has invaded the ship. Deep inside "Vehicle Aki," a hostile alien life-form has penetrated the ship’s defense mechanisms and is intent on destroying all human life aboard.

An unfathomable creature, invisible to the human eye, the alien possesses superior strength and intelligence. One by one, crew members are confronted by the invisible predator that savagely attacks and kills them. Faced with this life or death situation, Laura decides to go off on her own to find the predator before it finds her.

"Enemy Zero" is created by artist Kenji Eno, whose multi-million dollar Japanese production company also produced the mega-hit "D-No Shokutaku" ("D" in America), for which he acted as producer, designer, director, and composer. Eno brings the same sophistication and intensity to "Enemy Zero" with exquisite graphics and compelling story content.

With a score composed by Michael Nyman, Academy Award® Nominee for The Piano soundtrack, the game sustains its horror movie-like atmosphere and will keep players on the edge of their seats. Containing inimitable realism and pulse-racing action, "Enemy Zero" is as close to a full-sensory gaming experience as you can get -- it might be the first game bring you to tears!

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
Sega® of America is coming to the aide of consumers hit by a tidal wave of mediocre titles for other next-generation video game consoles. The video game giant announced today it will enact a "Five Star Games Policy" with all its upcoming releases. Games from Sega and from third parties for the Sega Saturn^TM, other Sega consoles and the PC, will meet a five star quality criteria, or they will not be released. This policy will take effect immediately.

The Sega of America "Five Star Games Policy" was established following an outcry from consumers and critics alike citing the flood of poorly produced, unoriginal games for other gaming systems.

Sega is already seen as a leader in creating quality games, as detailed in the April issue of Next Generation magazine, one of the videogame industry's leading trade publications. The magazine compiled reviews for the three leading next-generation platforms, and Sega Saturn came out on top with the most five star reviews -- the publication's highest rating. Next Generation considers a five star game to be "Revolutionary, brilliantly conceived and flawlessly executed; a new high-water mark."

Sega will support the "Five Star Games Policy" on several fronts for Sega Saturn, Sega Genesis^TM, arcade, PC, Sega Game Gear^TM and Pico^TM. Company chief operating officer Bernard Stolar and a review panel of product developers, testers and marketing staff will review and monitor each game from the initial concept to the final product. Monthly milestones will be set to assure quality standards for graphics, sound, originality, ease-of-use and gameplay are being met, rated on a 100 point scale (20 points for each category). If at any point in development the game does not meet the "Five Star Games Policy" criteria by falling below a score of 90, the panel will direct designers to correct the flaws or just suggest stopping the project all together.

As just one example of the new policy, Sega has formed a special group of game designers whose sole job is to create outstanding, realistic driving titles. This Sega Racing team will be committed to developing titles each year that will adhere to the "Five Star Games Policy" and aim to exceed current consumer expectations.

Sega Saturn owners will have many five star games to choose from this year, including "Fighters MegaMix^TM," the title Next Generation called "the ultimate fighting game." Other titles will include the much-anticipated Sega Saturn versions of "Last Bronx^TM" and "Manx TT SuperBike^TM," as well as "Panzer Dragoon Saga^TM," "World Series Baseball^TM ‘98" and Third-party five star titles include Electronic Art*s "Diablo^TM" and Capcom's "X-Men vs. Street Fighter^TM." This fall the company will also release "The Lost World: Jurassic Park^TM" for all Sega consoles, Game Gear and arcade.

For Sega Genesis, Sega will be re-releasing ten of the most critically-acclaimed games that made that system the number-one selling 16-bit video game console of all time. Titles will have a special value price of just $19.99 and will feature such hits as "Sonic 3^TM," "VectorMan^TM" and "Power Rangers^TM."

"The next generation market is getting flooded with mediocre games. History proves this situation can be disastrous to this business," said Bernard Stolar, chief operating officer, Sega of America. "The 'Five Star Games Policy' clearly signals our dedication to quality over quantity."

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
The dynamic duo of death and destruction is about to be freed from its PC chains to hit the TV screen. Sega® of America announced today that the top selling PC titles "Duke Nukem^TM 3D" and "Quake®" will make their debut on Sega Saturn^TM this summer. Both games will be available on Sega Saturn before shipping for other next-generation systems.

"Duke Nukem 3D" and "Quake" have topped the PC sales charts for months, bringing gamers non-stop 3D first-person shooting action. The Sega Saturn versions will stay true to the originals with all the pulse-pounding action and fierce enemies gamers have come to expect from these ground-breaking titles.

Sega Saturn has allowed developers to improve on the PC versions in several areas, including graphic quality, enhanced speed, interactive light sourcing and new levels. Duke Nukem 3D will also be playable via point-to-point online connections with Sega Saturn Net Link.

DUKE NUKEM 3D
Featuring a new exclusive Sega Saturn level, Duke Nukem must save Los Angeles from murderous aliens. Amid 28 interactive 3D levels, Duke protects the innocent from nine deadly enemies using his hi-tech weapons and more than 20 unique items and power-ups. With enhanced graphics and gameplay, "Duke Nukem 3D" will provide players with improved control and Sega Saturn Net Link compatibility, allowing for head-to-head networked gaming. Ship date: August 1997 SRP: $49.99.

QUAKE
The Sega Saturn version of "Quake" promises unparalleled shooting action. "Quake" fanatics will continue to stalk and pillage loathsome enemies and monsters in Sega’s advanced 3D playing environment. Weaponry includes the ever-popular rocket launchers, nailguns, thunderbolts, grenade launchers and standard double-barreled shotguns.

"‘Duke Nukem 3D’ and ‘Quake’ are a perfect pair for the next-generation videogame market. We intend to maintain the already high level of intensity and action found in the PC versions and combine that with an improved Sega Saturn adaptation that will keep the gamers coming back for more ," said Lydia Gable, marketing group director, Sega of America.

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
Sega® of America today announced it expects 80 third party games to ship for the Sega Saturn^TM this year. With this year's exciting line up, the Sega Saturn library will reach more than 300 games. Among the 20 major companies producing titles for Sega Saturn are Electronic Arts^TM, Fox^TM Interactive, Capcom® Entertainment, Interplay^TM, Konami® Acclaim®, Working Designs® and Atlus®.

"Third party publishers are taking advantage of untapped potential in the Sega Saturn hardware architecture to create ground breaking graphics and speed in realistic environments," said Gretchen Eichinger, group director of third party licensing, Sega of America. "This year's line-up will showcase some of the best next generation video games from third party developers on the Sega Saturn and Sega Genesis platform."

Electronic Arts (EA) is leading the pack with seven Sega releases this year. EA titles will include hit games such as the number-one selling real-time strategy game "Warcraft® II: The Dark Saga^TM," and the all new "Battlestations^TM" and "Darklight Conflict^TM." EA SPORTS action for Sega Saturn will include critically acclaimed giants, such as "Madden NFL® 98," "NBA® Live 98," "NHL® 98" and "FIFA, Road to World Cup 98."

Under license from Electronic Arts, THQ will be distributing "Madden NFL® 98," NBA® Live 98" and "NHL® 98" for Sega Genesis.

Capcom will release five Sega Saturn games this fall: "Resident Evil^TM," the wildly popular game of 3D horrors where players investigate the site of mysterious disappearances and murders; "MegaMan X4^TM," the most entertaining and challenging installment of the Mega Man X series yet; "Marvel Super Heroes^TM," a home translation of the #1 arcade blockbuster, and "Super Street Fighter II Collection^TM," a collection of three arcade classics from the Capcom's flagship fighting series. Capcom's "Mega Man 8" arrived at retails stores in February, and demand for the "blue bomber" led to product records nationwide.

Working Designs, a leading developer of successful RPG games, has three exclusive products to add to the strong third party line-up. "Sega Ages^TM," "Albert Odyssey: Legend of Eldean^TM" and "Magic Knight Rayearth^TM." "Sega Ages" contains three classic arcade games -- "Space Harrier^TM," a sci-fi thriller; "OutRun^TM," an explosive tour race event; and "Afterburner II^TM," the choice top gun action sequel.

Players can explore the supernatural world in the recently-released graphic adventure "Lunacy^TM" from Atlus. The way to survive this scrupulous Sega Saturn exclusive is to master complex puzzles while protecting the most precious possession of the titles' characters -- their memory.

Sega of America third party licensing group supports outside development for Sega Saturn titles by establishing close ties with game producers and programmers from the beta stage to the final product. Technical support, access to software tools and a broad graphics library pave the way for Sega's third party colleagues to produce graphically rich and innovative games.

"All the top publishers are bringing their best games to Sega Saturn," said Gretchen Eichinger, group director of third party licensing, Sega of America. "The list reflects the quality which keeps retailers and Sega Saturn consumers happy."

Electronic Arts, EA SPORTS and Darklight Conflict are trademarks or registered trademarks of Electronic Arts or is wholly-owned subsidiaries. NFL, NBA, NHL, World Cup and FIFA are trademarks of registered trademarks of their respective owners and used under license. The Dark Saga and WarCraft are trademarks or registered trademarks of Davidson & Associates, Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners.

Sega of America is the arm of Tokyo, Japan-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises, Ltd. is a nearly $3.6 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America’s World Wide Web site is located at (http://www.sega.com).

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
Hang on for the ride of your life. Sega® of America announced today the debut of two new Sega Racing^TM titles for Sega Saturn^TM -- "Manx TT SuperBike^TM" and "Sega Touring Car Championship^TM." Both arcade hits will be available this fall exclusively for Sega Saturn.

Sega Racing prides itself on creating the most realistic racing action possible. To make "Manx TT SuperBike" and "Sega Touring Car Championship," Sega game developers went to the tracks to film thousands of images, record hours of sound and consult with champion drivers to truly understand what it is like to be in the actual race. Sega game designers used that information, along with state-of-the-art 3D graphics and CD-quality sound, to create racing experiences like none other.

"The directive at Sega Racing is to make the games real, whatever it takes, " said Bernard Stolar, chief operating officer, Sega of America. "The research that went into the creation of the games shows our dedication to the racing experience and, ultimately, to the consumer."

Sega of America is the arm of Tokyo, Japan-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises, Ltd. is a nearly $3.6 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America’s World Wide Web site is located at (http://www.sega.com).

ATLANTA -- (June 19, 1997) E3 Booth #1546 --
Sega® of America is reinforcing its commitment to advanced role playing games (RPGs) on Sega Saturn^TM with two new releases -- "Shining the Holy Ark^TM" and "Panzer Dragoon Saga^TM." These "next generation" RPG titles, which incorporate visually-stunning 3D graphics, unlimited exploration and real-time, complex role playing, will be available exclusively on Sega Saturn.

Both "Shining the Holy Ark" and "Panzer Dragoon Saga" include new features such as real-time battles and exploration in a full 3D environment, helping gamers become more immersed in the role-playing action. As a leader in the category, Sega has the most popular role playing games available on any next generation system.

"Shining the Holy Ark" and "Panzer Dragoon Saga" derive from well-known series and storylines with strong histories on Sega Saturn platforms. Given this proven appeal, "Shining the Holy Ark" and "Panzer Dragoon Saga" already have a dedicated following of fans who will recognize the characters and stories, but will be taken to the next level of RPG gaming with added action elements, freedom of movement and evolving characters.

SHINING THE HOLY ARK
As another brilliant addition to the popular "Shining" series, "Shining the Holy Ark" is the first full-3D role playing game for the Sega Saturn which combines unlimited exploration of the beautiful 3D environments including dungeons and castles, high resolution graphics and over 100 hours of addictive, engaging role-playing. As Arthur, a swordsman on a mysterious rescue mission, you must overcome complex mazes and puzzles involving numbers and logic, find hidden items and overcome numerous evil forces in real-time, action-packed battles with characters you thought were your friends. With each character defeated, Arthur gains more experience and strength, bringing you one step closer to the final mission. With a special automap feature, players can navigate through this deep and graphically rich adventure.
     

• Ship date: July 1997
  
• SRP: $49.99

PANZER DRAGOON SAGA
As the ultimate sequel to the "Panzer Dragoon™" storyline, "Panzer Dragoon Saga," combines striking graphics and character morphing capabilities with an intricate, immersive storyline and more than 12 levels of action-packed RPG. As Edge, a young boy hunter who is saved by a dragon, players explore the RPG on or off the dragon, experiencing full 360 degree flight and freedom of exploration without pre-determined paths. Guiding Edge through the experience, the dragon has the ability to morph and take on numerous forms as it grows and gains experience. Adding to the mix of action in the game, the dragon can utilize four different attacks and use different weapons ranging from a laser to the player’s weapon to any item the player picks up.

• Ship date: January 1998
  
• SRP: $49.99

  "Sega is adding new features to the standard RPG gaming genre. ‘Panzer Dragoon Saga’ is the first RPG that will appeal to action games with fast, explosive flight missions and real-world style human interaction," said Lydia Gable, group director of marketing, Sega of America.
  

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  Sega of America is the arm of Tokyo, Japan-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega videogame systems and videogames in the Americas. Sega Enterprises, Ltd. is a nearly $3.6 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America’s World Wide Web site is located at (http://www.sega.com).

MEDIA