Warner Bros. Home Entertainment Group Acquire Turbine, Inc.

April 21, 2010

Warner Bros. Home Entertainment
Group Acquire Turbine, Inc.

North America’s Largest
Privately-Held Online Gaming Studio

Warner Bros. Home Entertainment
Group announced today the acquisition of Turbine, Inc., the largest
privately-held online gaming studio in North America, further strengthening
Warner Bros.’ position as one of the industry’s fastest growing, full-scale
games publishers.

“Turbine is a leader in online
entertainment and a strong strategic fit for Warner Bros. as we continue to
broaden our games portfolio and development capabilities,” said Kevin Tsujihara,
president, Warner Bros. Home Entertainment Group. “Turbine’s renowned online
game development and publishing expertise will help us develop additional online
product offerings, while also providing us with new and innovative ways to
market and communicate with our consumers.”

Founded in 1994 and operating
primarily in Boston, Turbine has created some of the most popular and exciting
gaming worlds on the Internet, including Dungeons & Dragons Online: Eberron
Unlimited, the world’s best free-to-play massively multiplayer online role
playing game (MMORPG) and The Lord of the Rings Online, the first and only
MMORPG based on the books of J.R.R. Tolkien. Previously, Warner Bros. held all
The Lord of the Rings (LOTR) games rights, with the exception of the literary
MMO (massively multiplayer online game) rights. Now all games rights for the
LOTR franchise will be unified under the Warner Bros. shield.

“We have been looking to expand
access to our online worlds to more players and more markets,” said Jim Crowley,
president and CEO, Turbine, Inc. “This acquisition is very exciting because it
allows us to expand globally while continuing to focus on creating spectacular
online games that our loyal fans and players have come to expect.”

Additionally, the acquisition of
Turbine provides Warner Bros. with access to a proprietary digital publishing
platform that enables dynamic direct-to-consumer relationships, robust online
merchandising opportunities and vibrant e-commerce functionality for online
games. Turbine has also developed a social networking platform that can
integrate their self-developed online communities with popular third-party
social networks. Outside of the games arena, these platforms present unique
opportunities for Warner’s other home entertainment businesses.

“Turbine is recognized globally for
its industry-leading technology, groundbreaking graphics and its unique ability
to create and operate massive and persistent online worlds which greatly enhance
players’ social gaming experiences,” said Martin Tremblay, president, Warner
Bros. Interactive Entertainment. “The Lord of the Rings Online and Dungeons &
Dragons Online have both been an enormous success for Turbine and we look
forward to working with their talented development team to continue creating
award-winning online games.”

In 2007, Warner Bros. acquired TT
Games, developer of the hit LEGO-based game franchises, including LEGO Star
Wars, LEGO Indiana Jones and LEGO Batman, which have wide appeal with players of
all ages. Early in 2009, Warner Bros. acquired Snowblind Studios to develop its
The Lord of the Rings games franchise, with the first title The Lord of the
Rings: War in the North expected to be released in 2011. Also in 2009, the
Studio purchased the primary assets of Midway Games. Midway published the Mortal
Kombat franchise, which has sold over 26 million units worldwide. Most recently,
Warner Bros. acquired a majority stake in Rocksteady Studios, a privately held
developer of interactive entertainment targeted at teens and adults.

Warner Bros. continues to grow its
games business through key acquisitions, building internal development
capabilities, leveraging its global video distribution infrastructure, and
focusing on developing major games franchises such as Batman, F.E.A.R., Mortal
Kombat, The Lord of the Rings and LEGO.