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SEGA SPORTS AND ESPN ENHANCE ALLIANCE

Upcoming 2K4 Lineup to Include ESPN Commentators, New In-Game Features And Stunning Visuals, Backed By a New Marketing Campaign

LOS ANGELES – Electronic Entertainment Expo (E3) – (May 12, 2003) – Visual Concepts Entertainment, a SEGA® development studio, today announced that it has expanded its relationship with ESPN®, The Worldwide Leader in Sports, for its "2K4" lineup of video games. Only one year after joining forces to deliver the most authentic and realistic sports simulation video games, including ESPN’s trademarked presentation features, the two sports powerhouses are taking integration to the next level. The expanded relationship will incorporate even more ESPN elements into the critically acclaimed "2K" franchises, including ESPN commentators, as well as an increased marketing alliance between the two brands.

The upcoming "2K4" lineup will further blur the lines between a sports video game and a sports television telecast by incorporating more ESPN-stylized features such as newly designed stat panels, fresh overlays, and more music. ESPN commentators will also provide in-game commentary on select 2K4 games. In addition, the opening game interface for the "2K4" lineup will be modeled in trademarked ESPN style including the ESPN Sunday NFL Countdown animation and the in-studio SportsCenter set.

"We’ve built a powerful sports video game brand by combining two of the biggest names in the business," said Greg Thomas, president, Visual Concepts Entertainment. "In our second year of the relationship, we are celebrating the successful integration of ESPN into our games with a more enhanced and robust look for the ‘2K4’ lineup. Last year, we added a few ESPN features that were met with great enthusiasm by gamers. In the ‘2K4’ series we are taking the integration to the next level with a new look and feel that even more sports fans and gamers will identify with and appreciate."

"ESPN’s ultimate goal is to continually serve sports fans in every way possible," said Rick Alessandri, senior vice president and general manager, ESPN Enterprises. "Our relationship with SEGA has allowed us to make significant inroads with sports gaming fans everywhere, and we look forward to continuing to work with SEGA to build on that strong base."

On the marketing front, ESPN will further consult and partner with the "2K4" team on promotions, advertising and events. This includes promotional and event tie-ins with ESPN such as the ESPN National College Tailgate Tour and the ESPN National Truck Tour, working together to create national advertising campaigns and maximizing on-air integration of "2K4" games within ESPN programming. This powerful combination will further differentiate and support the new direction of the "2K4" titles.

Additional exclusive ESPN features will be built into the "2K4" series of sports games including "NFL 2K4", "NBA 2K4", "NHL® 2K4", "NCAA® College Basketball 2K4" and "World Series® Baseball 2K4." The first title to unveil these features will be "NFL 2K4", available in the fall for the PlayStation®2 computer entertainment system and the Xbox® video game system from Microsoft.

About SEGA 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 ESPN

ESPN, Inc., The Worldwide Leader in Sports, is a multinational, multimedia sports entertainment company featuring the broadest portfolio of multimedia assets in sports marketing with over 40 business entities. The company is comprised of seven domestic television networks (ESPN, ESPN2, ESPN Classic, ESPNEWS, ESPN Deportes (launching the end of 2003), ESPN Now, ESPN Today), ESPN HD (a high-definition simulcast service of ESPN), ESPN Regional Television, ESPN International (25 international networks and syndication), ESPN Radio, ESPN.com, ESPN The Magazine, SportsTicker, ESPN Enterprises, ESPN Zones (sports-themed restaurants), and other growing new businesses including ESPN Broadband, ESPN Wireless, ESPN Video-on-Demand and ESPN Interactive. Based in Bristol, Ct., ESPN is 80 percent owned by ABC, Inc, which is an indirect subsidiary of The Walt Disney Company. The Hearst Corporation holds a 20 percent interest in ESPN.

NBA, NFL, NCAA, and NHL are trademarks of their respective owners and used with permission. "PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Xbox is a registered trademark of Microsoft Corporation in the United States and/or other countries. ™, ®, Game Boy Advance and the Nintendo GameCube are trademarks of Nintendo. ESPN is a registered trademark of ESPN, Inc. ESPN branded elements © Disney. All other trademarks are the property of their respective owners.



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