SEGA AND MCDONALD'S UNITE TO DELIVER INNOVATIVE PREMIUMS THIS SUMMER

Sonic The Hedgehog and Super Monkey Ball Branded Premiums Come Alive In

McDonald's Happy Meals This Summer

SAN FRANCISCO - (February 18, 2003) - SEGA(R) of America, Inc. today

announced it has entered into an affiliation with McDonald's(R) Corporation,

the world's largest quick service restaurant to create a new line of

McDonald's Happy Meal(R) premiums. Based on two top-selling SEGA franchises

- Sonic The Hedgehog(R) and Super Monkey Ball(TM), the premiums will come

alive this summer at participating McDonald's restaurants throughout North

America.

"Sonic The Hedgehog and Super Monkey Ball are two of SEGA's most popular

video game franchises," said Mike Fischer, vice president of marketing, SEGA

of America, Inc. "SEGA's affiliation with McDonald's affords us the

opportunity to generate increased exposure for these properties among a

growing universe of gamers."

"We believe consumers will have a great reaction to the innovative Sonic The

Hedgehog and Super Monkey Ball premiums found only in McDonald's Happy Meals

this summer," said Karlin Linhardt, senior director, U.S. marketing,

McDonald's Corporation. "SEGA's properties are extremely popular and we

look forward to bringing them to McDonald's consumers through this unique

Happy Meal offering."

The premiums will be supported by significant marketing campaigns from both

companies. Details on the premium items and marketing plans will be

announced at a later date.