U.S. ARMY LICENSES UNREAL® ENGINE 3 FOR AMERICA'S ARMY® GAME SERIES

Epic's Unreal Engine 3 to Serve as Development Base for America's Army Games and Training Simulations

West Point, NY May10, 2005 - The U.S. Army today announced that it is expanding its technology agreement with Epic Games. Since 2000, Epic's Unreal(r) Engine 2 has served as the foundation for America's Army, the Official U.S. Army Game. To take advantage of leap-ahead capabilities afforded by Epic Games' newest engine, the Army will begin developing its next generation versions of America's Army on the Unreal Engine 3® in the coming months.

"The Unreal Engine has enabled us to develop one of the most popular games in the world. At the same time, the Unreal Engine has provided us the power and flexibility to develop revolutionary training and education applications for use across the government," said Colonel Casey Wardynski, project director and originator of the "America's Army" concept. "The gameplay, environments and immersive action generated using Unreal Engine 3 will allow us to create ever more realistic scenarios and environments through which young adults can learn about Soldiering and through which Soldiers can master skills ranging from lifesaving to countering IEDs in the Global War on Terrorism."

The America's Army game (www.americasarmy.com) has placed Soldiering into popular culture by providing young adults the means to explore key Soldier lifecycle experiences from basic training to operations in the Global War on Terrorism. Since the America's Army game launched, gamers have completed more than 1.34 billion missions and 94 million hours virtually exploring progressive developmental experiences ranging from basic training to the Special Forces Qualification Course. Upcoming versions of the game include America's Army: Special Forces Overmatch, which will release this fall; and America's Army: Stryker-Overmatch to be released this winter.

By harnessing the power of the Unreal Engine, America's Army produces extraordinarily engaging and realistic environments and experiences. As a result, a wide variety of agencies from the U.S. Navy to national laboratories have repurposed America's Army for applications ranging from appended training devices for weapon systems to adaptive thinking and leadership training simulations.

"Our relationship with the Army has proven that Unreal Engine 3's flexibility, versatility and wide array of features can be deployed for greater purposes beyond traditional gaming," said Mark Rein, vice president of Epic Games. "We are delighted that our technology is supporting the Army in achieving its mission of showcasing the Army and helping to drive the America's Army game series to new levels. It's also really exciting for us to see how our technology can be used to help the Army prepare its Soldiers for the challenges they confront in real-life scenarios."

About Unreal Engine 3

The award-winning Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset. Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support,
next- generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3's new toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at www.unrealtechnology.com.

About the America's Army Game:

America's Army was designed and developed to use online game technology as a virtual portal through which young Americans can explore Soldiering in the U.S. Army. In America's Army players can explore and dominate challenges ranging from basic training to Special Forces Assessment and Selection to Special Forces Qualification Course. They can join various elite Army units and see the power of Army teamwork, values and technology. One of the top online action games on the Internet, America's Army has more than 5 million registered players who have completed over 94 million hours virtually exploring the Soldiering in the game.

America's Army is rated T for Teen and is available as a free CD at local Army Recruiting stations, ROTC Detachments and Army events, and can also be downloaded from various partners listed on the www.americasarmy.com site.

About Epic Games

Epic Games Inc., based in Raleigh, NC and established in 1991, is a developer of cutting-edge computer and video games. The company is best known as the creator of hit PC 3D action games Unreal and Unreal Tournament, both award-winning blockbuster hits having each sold more than one million copies. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including,
2002 Console Game of the Year winner, Tom Clancy's Splinter CellT from Ubi Soft; PC Gamer's 2000 Game of the Year, Deus Ex from Ion Storm/Eidos; America's Army, from the United States Army, and Harry Potter and the Sorcerer's Stone (PC) from Electronic Arts. Additional information can be obtained through Epic's Web site at www.epicgames.com.

About the Army

Through the teamwork efforts of the more than 1.2 million Soldiers in the active Army, Army National Guard and Army Reserve, the U.S. Army is the world's relevant and ready land force. Today's Army Soldiers are on the frontline in the ongoing Global War on Terrorism in missions like OPERATION IRAQI FREEDOM and OPERATION ENDURING FREEDOM, and joint-service missions for the Department of Defense. The Army will be 229 years old June 14. For more information on the Army, go to www.goarmy.com or www.army.mil.