SEGA GENESIS COLLECTION FOR THE PSP SYSTEM SHIPS TO RETAILERS IN NORTH AMERICA

SAN FRANCISCO (November 16, 2006) - SEGA® of America, Inc. today announced that it has shipped SEGA® Genesis® Collection for the PSP® (PlayStation®Portable) system to North American retailers. SEGA Genesis Collection is the most comprehensive gathering of classic SEGA products ever assembled, with over 30 titles in one compilation. Rated 'T' for "Teen" by the Entertainment Software Rating Board, SEGA Genesis Collection will retail at $29.95.

Developed by Backbone Entertainment, SEGA Genesis Collection features Altered Beast, Sonic The Hedgehog, Shinobi III, Phantasy Star, and the original SEGA Genesis® version of Golden Axe. The games in the collection have been reproduced with the utmost detail and accuracy. SEGA Genesis Collection for the PSP system also marks the handheld debut of many of the titles and numerous titles in the collection will also be playable via wireless Ad Hoc modes, adding to an unrivalled portable gaming experience.

SEGA Genesis Collection features unlockable items that delve into the soul of the SEGA Genesis, including interviews with the developers that created the original titles, a museum area with interesting facts about the games, a hint area to help players complete their favorite SEGA Genesis games, and SEGA arcade titles from the Genesis era to unlock.

For screens, a complete list of games, and more information about this and other SEGA products please visit http://segapr.segaamerica.com.

About SEGA® of America, Inc.

SEGA® of America, Inc. is the American Publishing arm of Tokyo, Japan-based SEGA® Corporation, a worldwide leader in interactive entertainment both inside and outside the home. 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. The SEGA® of America Web Site is located at www.SEGA.com.

Backbone Entertainment

Part of Foundation 9 Entertainment ( www.F9E.com), the largest independent game developer in North America, Backbone specializes in developing original and licensed IP for all platforms and creating merchandising opportunities in diversified entertainment genres. Backbone is based in Emeryville, CA, Vancouver, BC, and Charlottetown, Prince Edward Island and can be found on the web at: www.backboneentertainment.com.

Backbone, along with The Collective, Pipeworks, ImaginEngine, and Digital Eclipse make up Foundation 9 Entertainment. The company's studios have developed more than 300 titles, including more than 40 in 2005 alone. Foundation 9 Entertainment employs more than 350 employees, and has offices in Newport Beach, Emeryville, Vancouver, Boston, Eugene, Charlottetown and Honolulu. For more information on Foundation 9 Entertainment, please visit: www.F9E.com.

CONTACTS:

Denny Chiu

SEGA of America

(415) 701-4125

denny.chiu@segaamerica.com