Sega Europe Ltd Announces Software Publishing Division

Virtua FighterTM 4 Evolution (PS2®), Phantasy StarTM Online (XboxTM) and Sonic AdventureTM DX Director's Cut (GameCubeTM) confirmed as first self-published titles

LONDON, UK – March 28, 2003 – Sega Europe Ltd, today confirmed that it is in the process of instigating its own publishing operation to bring to market videogames for all viable gaming platforms. Sega Europe will be building up areas to look after all elements of sales, marketing and PR, to join its pre-existing development infrastructure, with the aim of maximising the sales potential of its popular gaming brands across all PAL-based territories. Previously, Sega Europe had a number of agreements with third-party publishers to bring SEGA-developed titles to market across these territories.

Sega Europe will initially consist of two offices across Europe. The European headquarters remains situated in Chiswick, London, and will operate as the central office for European (PAL) activity. In addition an office based in Paris, France will assist in direct publishing in the French territory. The company is in the process of negotiating distribution arrangements for remainder PAL territories, including Australia and New Zealand.

Naoya Tsurumi, President & COO of Sega Europe, commented, "Sega Europe is now in a position to get closer to the European games market, with its own publishing operation. The transition from hardware manufacturer to software publisher is now complete, and we see the next few years as an incredibly exciting time for growth for Sega Europe."

Sega Europe will be publishing games for all viable current and future hardware platforms, including PlayStation®2, the XboxTM video game system from Microsoft®, and both Nintendo GameCubeTM and Game Boy® AdvanceTM. The first games to be published by Sega Europe will be Sonic Adventure DX Director's Cut for GameCube, Phantasy Star Online for Xbox and Virtua Fighter 4 Evolution for PlayStation 2.

Phantasy Star Online Episode I & II • Xbox (Live) • May 2003

The award-winning Phantasy Star Online sparked a worldwide gaming phenomenon. Now, the world of PSO is coming to Xbox and Xbox Live. The first online role-playing game available on Xbox, Phantasy Star Online Episode I & II will feature all-new gaming modes and new content. For the first time ever, PSO gamers will be able to communicate online using the Xbox Communicator headset and with the new split-screen feature, four friends can adventure through the main quest, as well as the other game-play modes, on the same Xbox.

Episode I includes all of the content from the original PSO and Phantasy Star Online Ver. 2 (PSO Ver. 2), while Episode II brings a new, full-length adventure. The evolution of the original, revolutionary gaming experience continues.

Sonic Adventure DX Director's Cut • GameCube • June 2003

A special edition of the Dreamcast original, Sonic Adventure DX Director's Cut renovates Sonic's classic first 3D adventure for GameCube. Taking place on planet Earth, the evil Dr. Robotnik has returned and is eager to begin his plans for world domination by the destruction of Station Square where he plans to build his twisted Utopian vision of Robotnikland. He has a scheme to use the seven Chaos Emeralds to empower the Chaos monster, which grows each time it consumes one of these magical Emeralds. Sonic becomes entangled in this sinister plot as our Hero must enlist the help of his friends to foil Robotnik's every move and prevent the Chaos monster from becoming more powerful.

Virtua Fighter 4 Evolution • PlayStation 2 • June 2003

The series that started it all is back, and ready to stand triumphant. From the renowned team at SEGA-AM2, led by Virtua Fighter and Shenmue creator Yu Suzuki, comes the next sequel to the premier fighting franchise, Virtua Fighter 4 Evolution. The game features an eagerly anticipated 'Kumite' challenge mode that takes a player through virtual arcades based on real locations from Japan, playing against AI based on real 'VF.Net' fighting supremos. You'll also get your hands on 15 unique combatants – including 2 brand new characters for VF4Evo: Brad Burns and Goh. Each character has their own fighting style, all of which are based on real martial