LucasArts And Pixelux Redefine Environmental Realism For Next-Generation Interactive Entertainment

SAN FRANCISCO, CA - May 8, 2006 - LucasArts announced today that it has partnered with Pixelux Entertainment Inc. to include revolutionary Digital Molecular Matter (DMM) technology into all internal titles currently in development for next-generation video game consoles. DMM is exclusive to LucasArts beginning with Indiana Jones® 2007 [working title] and continuing with the next Star Wars® experience. This breakthrough in material physics will bring an unprecedented level of realism to next-gen projects by making completely interactive environments that react as they would in real life. From crumbling walls to shattering glass and even swaying organic plant life, in-game objects have material properties that behave realistically all in real time.

If a structure exists -- big or small, dense or thin, floppy or rigid -- DMM causes it to react in the same way dictated by reality. For example, unlike what you'd see in current-gen games, wood doesn't simply break apart along a predetermined seam every time -- rather, it splinters into countless pieces from the exact point of impact, also taking into account the amount of sheer force exerted. The same rules apply to any substance imaginable: Rubber bends and snaps back into place. Glass shatters. Crystal fractures. Stone crumbles. Carbonite (yes, the very alloy that encased Han Solo) dents.

With DMM in action, a Jedi unleashes the Force like never before. His violent Force push hurtles a helpless stormtrooper through a stone column, blasting it apart. Moments later, the sudden lack of support causes the building to smash to the ground, piece by piece. Meanwhile, a virtual Jabba the Hutt presides over his court, as rolls of gelatinous fat bounce and jiggle thanks to a body composed of DMM.

"Pixelux has been a fantastic partner in our effort to bring true next-generation gameplay to these new consoles," said Peter Hirschmann, vice president of product development at LucasArts. "Digital Molecular Matter enables us to deliver game worlds that feel truly dynamic and alive -- we can pack in dramatically more gameplay per square foot than was ever possible with earlier hardware generations."

"When it comes to unlocking the potential of DMM -- a technology that many engineers believe is still 10 to 15 years away -- it's hard to beat opportunities like next-gen Indiana Jones and Star Wars," said Vik Sohal, chief operating officer at Pixelux. "Partnering with LucasArts is the perfect way to introduce DMM to the gaming public."

LucasArts will demonstrate DMM during a behind-closed-doors tech demo set in a galaxy far, far away on May 10-12 at the E3 Expo in Los Angeles, CA.

About LucasArts
LucasArts, a Lucasfilm Ltd. company, is a leading developer and publisher of interactive entertainment software worldwide for video game console systems, computers and the Internet. Based in San Francisco, CA, as well as on the Internet at www.lucasarts.com, LucasArts was created in 1982 by George Lucas to provide an interactive element to his vision of a state-of-the-art, multifaceted entertainment company.

Lucasfilm Ltd. is one of the world's leading film and entertainment companies. Founded by George Lucas in 1971, it is a privately held, fully integrated entertainment company. In addition to its motion-picture and television production operations, the company's global activities include Industrial Light & Magic and Skywalker Sound, serving the digital needs of the entertainment industry for visual-effects and audio post-production; and Lucas Licensing, which manages the global merchandising activities for Lucasfilm's entertainment properties. Additionally, Lucas Online creates Internet-based content for Lucasfilm's entertainment properties and businesses. Lucasfilm's motion-picture productions include five of the 20 biggest box-office hits of all time and have received 19 Oscars and 53 Academy Award nominations. Lucasfilm's television projects have won 12 Emmy Awards. Lucasfilm Ltd. is headquartered in San Francisco, CA.

About Pixelux Entertainment Inc.
With engineers who have worked on everything from military missile tracking to the racecars of legendary NASCAR® drivers, Pixelux was founded in October 2003 with a mission of automating art asset production through physical simulation. Digital Molecular Matter (DMM) technology has been designed to take full advantage of next-generation architectures, utilizing GPUs and multiprocessor cores to achieve an unprecedented degree of realism. Pixelux is a member of middleware programs for both the PlayStation®3 and Xbox 360 with versions of DMM being prepared to take unique advantage of each of these platforms. DMM will also be available for properly equipped PCs. Pixelux is currently working exclusively with LucasArts to apply DMM into next-generation games released through September 2008, such as new titles based on Indiana Jones® and Star Wars®. Pixelux is also marketing middleware products to the United States military. For more information, please visit www.pixeluxentertainment.com.