Foundation 9 Entertainment plunging Into Next-Gen Console Development

FOR IMMEDIATE RELEASE:

Emeryville, CA - August 19, 2005 - Foundation 9 Entertainment, Inc., the largest independent developer in North America, announced today that it is officially moving into development for next-gen consoles in a number of its studios.

Already with a next-gen title based on the Dirty Harry franchise being developed by The Collective in Newport Beach, Foundation 9's Backbone Emeryville studio is also working on an unannounced next-gen project, and Pipeworks and Backbone Vancouver are delving into next-gen development as well.

"We're excited to be taking this step up to develop and deliver the highest quality titles for the next-gen consoles," said Foundation 9 Co-President Douglas Hare. "We plan to carry our huge success on the current generation of consoles onto the next, creating great games based on licensed and original IP."

In addition to these projects for next-gen consoles, the company is also hard at work on nearly 30 titles for all current platforms across its five major studios.

Both The Collective and Backbone Emeryville are currently in the middle of a large recruitment drive in response to the large number of projects in development.

About Foundation 9 Entertainment

Foundation 9 Entertainment is a premier developer of interactive entertainment products and properties, and the largest independent games developer in North America. With studios in the San Francisco Bay Area, Vancouver, Boston, Los Angeles, Newport Beach, Eugene, and Honolulu, Foundation 9 Entertainment is a development powerhouse, uniquely positioned to maximize the value of entertainment properties across all entertainment genres.

Through its studios and core brands, Backbone, The Collective, Pipeworks, ImaginEngine, and Digital Eclipse, Foundation 9 Entertainment has worked with the largest names in the game publishing world, including Electronic Arts, Activision, Vivendi-Universal, and Take-Two Interactive. The company creates titles for all age groups and all platforms, through licensed and original IP, as well as contract development and its studios have developed more than 250 titles, including more than 50 in 2004 alone. For more information, please visit: www.F9E.com.

Media Contacts:

Nicole Tanner

Foundation 9 Entertainment

(510) 547-6101 ext. 457

nicolet@f9e.com

or

Sean Kauppinen

Kohnke Communications

(415) 777-4000

sean@kohnkecomm.com