is a subsidiary of Microsoft Corp.
"City of Villains is a fantastic game experience and a great introduction
to the capabilities of AGEIA physics technology," said Andy Keane, vice
president of marketing for AGEIA. For more
information visit http://www.com

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, Microsoft is producing more Xbox 360 consoles than ever.Cryptic Studios Uses AGEIA NovodeX Physics Software to Generate Physics-Based
Effects and Environments for Much-Anticipated Companion Game to City of Heroes

LOS ANGELES, At the Electronic Entertainment Expo
(E3 ), AGEIA(TM) Technologies, Inc.

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Xbox 360 (http://www., the pioneer in hardware-accelerated
physics for games, today announced that Cryptic Studios, Inc. The PhysX processor and supporting software
deliver the processing horsepower to calculate real-time interactive worlds.

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now
producing the next-generation console along with partners Wistron Corp.

According to a source code license agreement with
AGEIA, Cryptic Studios will be using AGEIA's NovodeX physics software as their
core physics engine for upcoming games such as City of Villains. is a fabless semiconductor company and the
pioneer of hardware-accelerated physics for games.

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AGEIA seeks to ignite innovation in the games industry by working with
leading developers, publishers, add-in board vendors and console manufacturers
to deliver the next generation of physically immersive entertainment.

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Microsoft Announces Xbox 360 Inventory Surge and Spring Games Lineup

xbox.
NCsoft, the interlocking NC Logo, and all associated NCsoft logos and designs
are trademarks or registered trademarks of NCsoft Corporation.

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newscom. Great titles that gamers can expect
this season include these:

* "2006 FIFA World Cup(TM)" (EA SPORTS )
* "Battlefield 2: Modern Combat" (Electronic Arts Inc.

Upcoming 'City of Villains' MMO Game Powered by AGEIA Physics Technology

408-839-8750
kim@reverbinc.

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com.

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com), its first-generation video game and
entertainment system, now sold in 26 countries.
Rare Ltd.

AGEIA Media Contact:
Kim Stowe
Reverb Communications, Inc.

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In addition, new titles are coming to Xbox Live Arcade all the time,
including "Street Fighter II: Hyper Fighting," "Uno " and the free full version
of "Texas Hold 'Em Poker" by Riverbelle.

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"With more consoles on their way to retail,
80 games available by June, and new content and experiences coming to Xbox
Live (R) all the time, there has never been a better time to own an Xbox 360. In fact, more than
85 percent of connected Xbox 360 consoles have already downloaded content from
Xbox Live everything from game demos and arcade titles to
premier movie trailers and music videos. (By
appointment only, Kentia hall, booth #7532.

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and
Flextronics Corp.), the next-generation debut of the very popular Lara Croft
series.com/xbox360) is the
most powerful video game and entertainment system, delivering the best games,
the next generation of the premier Xbox Live online gaming service, and unique
digital entertainment experiences that revolve around gamers. is using AGEIA's
NovodeX physics software to create amazingly realistic effects and interactive
environments for its upcoming City of Villains (TM) Massively Multiplayer
Online (MMO) Role-Playing Game. All other products are
trademarks of their respective companies.

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, located in Los Gatos, California, was established
in July of 2000 and is an independent developer of massively multiplayer
online games for the PC and next generation consoles.

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"Cryptic Studios is very excited about AGEIA's physics technology.

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Gamers can choose from a range of truly
next-generation games such as "The Elder Scrolls IV: Oblivion" (Bethesda
Softworks /2K Games), an Xbox 360 console exclusive with beautiful
next-generation graphics and a huge world to explore; "Ghost Recon Advanced
Warfighter" (Ubisoft Entertainment SA), the latest version of the successful
Tom Clancy series that once again pushes the boundaries of multiplayer
boundaries on Xbox Live; and "Lara Croft Tomb Raider: Legend" (Eidos
Interactive Ltd.
Xbox 360 will continue to deliver new online gaming and entertainment
experiences including the "Battlefield 2: Modern Combat " game demo (Electronic
Arts), the "Burnout Revenge" game trailer (Electronic Arts), and the "The
Elder Scrolls IV: Oblivion" Horse Armor Pack (Bethesda Softworks/2K Games),
which will all be available this spring on Xbox Live Marketplace. Once
gamers experience this level of immersion it will quickly become a must-have
feature," said Michael Lewis, CEO of Cryptic Studios.

NOTE: City of Heroes, City of Villains and all associated logos are
trademarks or registered trademarks of Cryptic Studios and NCsoft Corporation.

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"Today we have turned a major corner," said Peter Moore, corporate vice
president of the Interactive Entertainment Business in the Entertainment and
Devices Division at Microsoft.
The names of actual companies and products mentioned herein may be the
trademarks of their respective owners.

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"

Blockbuster Games on the Way
The Xbox 360 games portfolio expands this spring with new next-generation
titles from leading developers and publishers that cater to every genre, age,
skill level and budget. Microsoft Game Studios confirmed new content for "Project Gotham
Racing(R) 3," including exciting cars and achievements. Fans of "Perfect Dark:
Zero(TM)" will have access to additional content, including downloadable
multiplayer maps.

About Xbox and Xbox 360
Microsoft revolutionized the gaming industry with the November 2001 launch
of Xbox(R) (http://www.

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(Nasdaq: MSFT) today announced the broader availability of Xbox 360(TM)
consoles and provided details about the new games and entertainment
experiences available to gamers this season.
(Logo: http://www.)
* "Blazing Angels" (Ubisoft)
* "Burnout Revenge" (Electronic Arts)
* "Dynasty Warriors(R) 5 Empires" (KOEI)
* "The Elder Scrolls IV: Oblivion" (Bethesda Softworks/2K Games)
* "Far Cry Instincts Predator" (Ubisoft )
* "FINAL FANTASY(R) XI" (Square Enix Inc.

Xbox Live Digital Content Distribution Sets Records
Xbox Live Marketplace, a digital download center freely accessible to any
Xbox 360 owner with a broadband connection, has reached more than 10 million
downloads faster than iTunes did when it launched. or Rare Ltd.
Published by NCsoft and scheduled for Fall release, City of Villains has
been eagerly anticipated by fans of the award-winning and hugely popular City
of Heroes(R) MMO game. "With this powerful technology in the hands
of a talented development team such as Cryptic Studios, we're only beginning
to explore the possibilities of physics in next-generation games. Its first game, City of
Heroes, launched in April 2004.

About AGEIA
AGEIA (TM) Technologies, Inc.

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com/cgi-bin/prnh/20000822/MSFTLOGO )
Beginning this week, Microsoft will distribute two to three times the
number of Xbox 360 consoles to the retail channel weekly. While the two game worlds are interactive, City of
Villains is a standalone game offering brand new archetypes with new types of
powers, as well as physics-based effects and environments that can be hardware
accelerated with the AGEIA PhysX processor.)

About Cryptic Studios
Cryptic Studios , Inc.
Developers can define these worlds to obey the laws of classical physics, or
create their own physical laws that make their game a unique, hyper-
dimensional experience.

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In addition, the unique experience of "Kameo(TM): Elements
of Power(TM)" will be extended through new online cooperative gameplay options
and exciting new costumes for Kameo and her warriors.xbox. The system will be launched in Australia
and New Zealand March 23, 2006.

About Microsoft
Founded in 1975, Microsoft is the worldwide leader in software, services
and solutions that help people and businesses realize their full potential. in the United States
and/or other countries. Its flagship product, the
PhysX processor, is the world's first dedicated physics processing unit -- a
completely new hardware category .

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, Microsoft Corp. Such effects include large rigid
body simulations, fluids, physical particle systems , and other complex physics
implementations that are radically accelerated with dedicated physics
hardware."
AGEIA will be demonstrating games using AGEIA PhysX technology at E3.

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)
* "Ghost Recon Advanced Warfighter" (Ubisoft)
* "Lara Croft Tomb Raider: Legend" (Eidos)
* "Major League Baseball 2K6" (2K Sports)
* "The Outfit(TM)" (THQ)
* "Rockstar Games Presents Table Tennis" (Rockstar Games)
* "Rumble Roses XX(TM)" (Konami)
* "Top Spin 2 " (2K Sports)
* "X-Men: The Official Game" (Activision)

In addition to new games, consumers can extend the experience of existing
Xbox 360 titles with new downloadable content available on Xbox Live
Marketplace. Microsoft introduced its
next-generation system, Xbox 360, in the 2005 holiday season in Europe, Japan
and North America, and has launched the system in Colombia, Hong Kong, Korea,
Mexico, Singapore and Taiwan in 2006.
NOTE: Microsoft, Xbox 360, Xbox Live, Project Gotham Racing, Perfect
Dark: Zero, Kameo, Elements of Power, Xbox and Rare are either registered
trademarks or trademarks of Microsoft Corp. Consumer
add-in boards and systems equipped with the AGEIA PhysX processor and games
that take advantage of the technology will be available in late 2005 .

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The game takes place in a virtual world where
thousands of people play simultaneously, take on the role of super-powered
heroes, fight villains and help create a dynamic story in a visually-stunning ,
3-D graphical world.

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Xbox Live on Xbox 360 Speeds Past 10 Million Downloads

REDMOND, Wash. With component
supplies in full production and third manufacturing partner Celestica Inc. The new game release is the result of an
ongoing partnership between AGEIA and Cryptic, in which both companies combine
their considerable talent and expertise to take games to a new level of
interactivity and realism.ageia. AGEIA, PhysX
and NovodeX are trademarks of AGEIA Technologies , Inc.

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- - kjjkjk

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