Imagination partners with Universal and consolidates leadership position in DVD games

Global interactive games company, Imagination Entertainment has partnered with one of the world's leading entertainment companies, Universal Pictures (UK), and today announced a multiple game distribution deal to optimise the booming consumer game category, DVD games in the UK.

The partnership is a result of Imagination's and Universal's commitment to diversifying the growing DVD game market in the UK and Eire. The partnership will strengthen both companies' leadership position in the category by introducing a range of new DVD game titles and game play types to new retail as well non traditional retail game outlets.

Imagination Entertainment's CEO, Shane Yeend said: "The partnership brings together Universal's marketing excellence, relationships and retail network with Imagination's interactive games, experience, brands, technology and production infrastructure."

Imagination Entertainment invented the DVD game and pioneered the booming brand new consumer entertainment category in 2001 and in doing so has changed the way the world plays games forever by adding the magic of TV to board games. Following our international success in the category, our

challenge is to deliver innovative new products for Universal to maximise at retail."

Universal Pictures (UK)'s Joint Managing Director, Helen Parker said: "The combination of Imagination and Universal's expertise in this interactive DVD market makes this a very a very exciting new venture. We are always trying to improve the DVD experience for our consumer to continue to drive growth for the format. We have had considerable success with Millionaire on interactive DVD and believe that this relationship will help us continue to push the boundaries for gaming on DVD.

Mr Yeend: "Our excellent relationship with the team at Universal and our common vision for this exciting new category are the ideal combination to move forward. World-class product and technology and world-class distribution will allow us to open up this market."

Universal's aggressive approach to securing non-traditional distribution channels and increasing the yield per square inch at retail is a perfect fit with Imagination's strategy to grow DVD games in the retail isle and develop new places to sell product. Rather than a game box, DVD games can be sold in a DVD case. This not only lowers the cost of goods by 60% but opens direct links to the home video and entertainment industry retail market for DVD games across the UK.

Mr Yeend said: "This new venture complements our existing joint venture with Hasbro Europe. Under this agreement formed in June 2004, DVD games are distributed to 46 European countries

and have included popular brands and licenses such as MGM and Nickelodeon, with Disney Trivial Pursuit being the latest DVD game to be released. Product that falls outside of the Hasbro agreement will be directed to Universal and will include a mixture of licensed properties and Imagination's own intellectual property, with six titles planned for release for Christmas 2005."

About Imagination Entertainment

Imagination creates, produces and distributes the most compelling interactive entertainment to the world. Celebrating 21 years of business in 2005, Imagination has interests in traditional games and puzzles, DVD games, mobile phone games, interactive television and digital media production. In 2005 Imagination is the clear market leader of the DVD games category with products available in 85,000 retail outlets across the world. Imagination's DVD games bring family and friends together, using patent DVDi technology, DVD Game Pro, to produce award-winning products.

About Universal Pictures International

Universal Pictures (UK) is part of Universal Pictures International is part of NBC Universal - one of the world's leading media and entertainment companies in the development, production, and marketing of entertainment, news, and information to a global audience. Formed in May 2004 through the combining of NBC and Vivendi Universal Entertainment, NBC Universal owns and operates a valuable portfolio of news and entertainment networks, a premier motion picture company, significant television production operations, a leading television stations group, and worldrenowned theme parks. NBC Universal is 80%-owned by General Electric, with 20% controlled by Vivendi Universal.