Radica Games Limited Announces License Agreement with Codemasters and Sega Toys

Radica Games Limited Announces
License Agreement with Codemasters ® and Sega® Toys

19th January 2005, United Kingdom –
Radica Games Limited (NASDAQ: RADA) announced today a worldwide licensing
agreement with Codemasters Software Co Ltd and Sega Toys (a subsidiary of Sega®
corporation) to manufacture and distribute Arcade LegendsTM Sega® Mega DriveTM
Sensible SoccerTM Plus. The multi-game unit will plug directly into a TV set and
allow players to play three classic games developed by Sensible Software,
including Sensible SoccerTM, Cannon FodderTM and Mega-Lo-ManiaTM.

The product is expected to hit
retail shelves in May 2005 and will retail for approximately 29.99. The game is
designed to replicate the high quality of the original Sega Mega Drive versions
and will feature two controllers, enabling one or two player gameplay.

Pat Feely, Radica’s President and
CEO said, "Sensible Software was one of the most important video game
development houses of the nineties, creating fun, highly playable games and
building a huge following. By re-launching their classic titles in an accessible
plug and play format, Radica will be appealing to those original fans and taking
a fantastic gaming experience to a whole new audience."

Matt Davies, Codemasters’ Business
Development Manager, commented: "This is a great package of classic titles from
the Sensible Software catalogue, which Codemasters acquired the rights to some
years ago. Each game featured represents some of the most playable, original
games of the 1990s and we’re thrilled to see them brought back to life thanks to
Radica’s plug-and-play games system."

About Radica Games Limited Radica
Games Limited (Radica) is a Bermuda company headquartered in Hong Kong (NASDAQ:
RADA). Radica is a leading developer, manufacturer and distributor of a diverse
line of electronic entertainment products including electronic games, youth
electronics, video game accessories and high-tech toys. Radica has subsidiaries
in the U.S.A., Canada and the U.K., and a factory in Dongguan, Southern China.
More information about Radica can be found on the Internet at
www.radicagames.com

About Codemasters® Codemasters is a
leading developer and publisher of best-selling interactive entertainment
products for a global audience on current and future gaming platforms and
channels. Established in 1986, the company’s dominant brands include Colin McRae
Rally, TOCA Race Driver, LMA Manager, and Operation Flashpoint. The company is
headquartered in Southam, Warwickshire UK and maintains European operations in
Germany, France, Spain, and Benelux. The company has its US headquarters in New
York. More information about the company and its products is available online at
http://www.codemasters.com 

About Sega® Corporation Sega®
Corporation is a worldwide leader in interactive entertainment both inside and
outside the home, encompassing consumer business, amusement machine sales and
amusement center operations. 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® Corporation’s website is located at
http://sega.jp