AGEIA Builds Momentum at E3 with Key Hardware and Software Alliances Promoting Physics in Games

LOS ANGELES, Calif. - May 18, 2005 - At the Electronic Entertainment Expo (E3), AGEIA^TM Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced a flurry of design wins and new partnerships with game developers, add-in board vendors, publishers, console manufacturers and middleware vendors from around the world and throughout the gaming universe.

Manju Hegde founder and CEO of AGEIA:

"We couldn't have asked for a more enthusiastic response to AGEIA's PhysX hardware and software from some of the top companies in the game industry. As we build these new partnerships, we're also strengthening our own team at AGEIA with key talent acquisitions that bring decades of game industry experience to our organization."

Andy Keane, newly appointed vice president of marketing for AGEIA:

"Content is the name of the game, and we're simply amazed at the content we've been seeing in titles from startups as well as leading developers using AGEIA's PhysX hardware and software. The real test of any technology is what people can do with it, and what these talented artists have done so far with AGEIA PhysX technology makes us very optimistic about the future of physics in games."

AGEIA Partner Announcements

Add-in Board Vendors

• ASUS Computer: Will develop and market add-in boards with the AGEIA PhysX processor, the world's first and only dedicated physics processing unit. Products are expected within 2005, coinciding with the release of popular game titles incorporating AGEIA physics technology.

Console Manufacturers

• PlayStation®3: AGEIA is developing powerful physics-based middleware for the PlayStation 3 based on AGEIA's NovodeX physics software. As the only multithreaded physics software in the industry, AGEIA's NovodeX physics software is uniquely suited to harness the new capabilities of next-generation game consoles such as the PlayStation 3.

Game Developers/Publishers

• Atari: Using AGEIA's NovodeX physics software in Dragonshard^TM, a real-time strategy game based on the Dungeons & Dragons^® universe created by Wizards of the Coast.

• Atari's Shiny Entertainment Studio: Creator of Enter the Matrix^TM using AGEIA's NovodeX physics software for physics-based martial arts action and gunplay, as well as physics-defying stunts and aerobatics in upcoming game titles.

• Big Huge Games: Targeting the AGEIA PhysX processor for hardware acceleration of upcoming real-time strategy game Rise of Nations: Rise of Legends.

• Bongfish Interactive Entertainment: Incorporating AGEIA's pioneering physics technology into snowboarding game Stoked Rider featuring Tommy Brunner.

• Cryptic Studios: Source code agreement to use AGEIA's NovodeX physics software as core physics engine for upcoming City of Villains and other next-generation titles.

• PerfectPlay Entertainment: Building first game Metathrone Project from ground up with AGEIA physics technologies.

• Phantagram Co.: Korean developer and creator of Kingdom Under Fire series using AGEIA's NovodeX physics software for its upcoming title for the Xbox 360.

• Ritual Entertainment: Source code agreement enabling Ritual to integrate AGEIA technologies, such as AGEIA's NovodeX physics software, into their own core technology.

• Spark Unlimited: New Pandora game will list AGEIA PhysX processor as minimum system requirement as part of larger technical and marketing partnership.

• Ubisoft: Tom Clancy's Ghost Recon 3 is leveraging the unique multithreaded capabilities of AGEIA's physics software to harness the power of next-generation consoles.

E3 Demos (By appt. only)

• Game Consulting: French specialist of 3D outsourcing will be demonstrating the power of AGEIA's PhysX hardware and software with their new live combat game Arena Online.

• YAGER Development: German developer will be demonstrating the hardware acceleration of AGEIA's PhysX processor with Eye of the Storm (working title), an action game focusing on futuristic guerilla combat in urban environments.

About AGEIA

AGEIA^TM Technologies, Inc. is a fabless semiconductor company and the pioneer of hardware-accelerated physics for games. Its flagship product, the PhysX processor, is the world's first dedicated physics processing unit - a completely new hardware category. The PhysX processor and supporting software deliver the processing horsepower to calculate real-time interactive worlds. 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.

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. 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. For more information visit www.ageia.com.

AGEIA, PhysX and NovodeX are trademarks of AGEIA Technologies, Inc. All other products are trademarks of their respective companies.

AGEIA Media Contact:

Kim Stowe

Reverb Communications, Inc.

(408) 839-8750

kim@reverbinc.com