EPIC AND EA ANNOUNCE UNREAL® ENGINE 3 ADOPTED FOR SELECT NEXT-GEN TITLES

EPIC AND EA ANNOUNCE UNREAL® ENGINE 3 ADOPTED FOR SELECT NEXT-GEN TITLES

State of the Art Engine To Be Used Alongside EA’s Proprietary Tools & Technology Library

Redwood City, CA, August 18, 2006 – Epic Games and Electronic Arts Inc. (NASDAQ: ERTS) today announced that they have entered into a license agreement for EA to adopt the Unreal® Engine 3 for use in several next-generation titles that are currently under development. With the largest studio operation in the world, EA employs a variety of engines, tools and technologies to best serve the needs of each game and development team.

Unreal Engine 3 is a vast array of core technologies, content creation tools, and support infrastructure used for developing next-generation console and PC games. The Unreal Engine has been designed to ease content creation and programming, with the goal of putting as much power as possible in the hands of artists with minimal programmer assistance; and to give programmers a highly modular and extensive framework for building, testing, and shipping games in a wide range of genres.

Paul Lee, president of EA studios commented, “At EA, we give our development teams the tools they need to make great games. We license cutting edge tools like the Unreal Engine 3 and combine them with our own systems to create state-of-the art development technology.”
“We’re obviously thrilled to license Unreal Engine 3 to EA, the world leader in our industry” said Mark Rein, Vice President, Epic Games, Inc. “They have extremely talented development teams, and we’re excited to see how they apply our technology to their high profile game projects.”

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About Epic Games

Epic Games Inc., based in Raleigh, NC and established in 1991, is a developer of cutting-edge computer and video games. The company is best known as the creator of hit PC 3D action games Unreal and Unreal Tournament, both award-winning blockbuster hits having sold over one million copies, and the upcoming Gears of War. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including, 2002 Console Game of the Year winner, Tom Clancy’s Splinter Cell ™ from Ubi Soft; PC Gamer’s 2000 Game of the Year, Deus Ex from Ion Storm/Eidos; America’s Army: Special Forces, from the United States Army, and Harry Potter and the Sorcerer’s Stone (PC) from Electronic Arts. Additional information can be obtained through Epic’s Web site at www.epicgames.com

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world’s leading interactive entertainment software company. Founded in 1982, the company develops, publishes, and distributes interactive software worldwide for videogame systems, personal computers and the Internet. Electronic Arts markets its products under four brand names: EA SPORTSTM, EATM, EA SPORTS BIGTM and POGOTM. In fiscal 2006, EA posted revenue of $2.95 billion and had 27 titles that sold more than one million copies. EA’s homepage and online game site is www.ea.com. More information about EA’s products and full text of press releases can be found on the Internet at http://info.ea.com.

Electronic Arts, EA, EA SPORTS, EA SPORTS BIG and POGO are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries.

Unreal, Unreal Tournament and Gears of War are trademarks or registered trademarks of Epic Games Inc in the U.S. and/or other countries. All Rights Reserved.