MICROSOFT AND REAL TIME WORLDS SIGN PARTNERSHIP AGREEMENT

LONDON, 21st June 2005 -Today at the ELSPA Games Summit industry conference in London, Peter Moore, corporate vice president, worldwide marketing and publishing, Xbox, announced that Scottish games developer Real Time Worlds have signed a partnership agreement with Microsoft that will see a number of exclusive titles developed for the new Xbox 360^TM system that puts players at the centre of the most powerful next-generation games and entertainment experiences.

Founded in March 2002, Real Time Worlds employs 75 people and is led by three game industry veterans who, between them, are responsible for some of the world's most popular games. Real Time Worlds creative director David Jones, founder of DMA Design, was the creative director behind two of gaming's most successful franchises, "Grand Theft Auto" and "Lemmings." Ian Hetherington, former managing director of Sony Computer Entertainment Europe, founded Psygnosis, one of the United Kingdom's first videogames publishers. Tony Harman, former director of development and acquisition for Nintendo of America, was the executive producer of the "Donkey Kong Country" franchise.

"We're looking forward to working with Real Time Worlds and are thrilled with what they're going to be achieving with Xbox 360," said Moore. "The company harbours some of the most talented people in the industry, responsible for milestone games such as Grand Theft Auto, Lemmings and Donkey Kong Country. That creative history is now coming to the most powerful games platform on earth, and we can't wait for gamers to experience what this partnership can offer."

"We're delighted to be working with Microsoft," said David Jones, Creative Director, Real Time Worlds. "In the short time we've had to get to know Xbox 360, we've been blown away by the potential this platform offers and what it means for gamers - the exciting hardware means we can harness even more power to create amazing worlds that utilise innovative online components thanks to Xbox^® Live^TM. The combination of powerful hardware, great software and innovative services has freed us up to concentrate on creating incredibly immersive game worlds and experiences that will define what this next generation means for gamers."

The creative vision of the industry's most respected developers is amplified by the power of Xbox 360. New games deliver more expansive, realistic and intelligent gameplay to draw the gamer into the experience as never before. With Xbox 360, thousands of characters converge for epic battles scenes, each with their own unique artificial intelligence to keep gamers on their toes. Dynamic environments create new experiences with every step - realism emerges not only in the advanced lighting and texture effects that illuminate the graphics, but in the way the setting itself responds to characters' movements. When an enemy hiding in the brush makes a sudden move, players will see and hear the leaves rustle to alert them to someone's presence. Not only are games smarter, but they engage players in more dramatic ways. Characters on the screen capture the subtle nuances of human emotion to draw players into the drama of the scene as never before.

Xbox 360 ignites a new era of gameplay in which people power the experience and imagination becomes the only boundary. Now an integral feature for every Xbox 360 title, the Xbox Live^TM service gives gamers the opportunity to continually evolve and expand their experience. With features such as spectator mode, intelligent matchmaking, Xbox Live Marketplace and video chat, Xbox 360 invites consumers to play a role in defining their own unique gaming universe.

About Real Time Worlds

Real Time Worlds is a Dundee Scotland based company, headed by top industry designer David Jones. David Jones has created such global hit franchises as Grand Theft Auto and Lemmings and has hand picked his staff from his previous top selling products to create Real Time Worlds. The company has an emphasis on online gaming.

About Xbox 360

Xbox 360 is the future-generation video game and entertainment system that places games at the centre of the experience. Available this Christmas in North America, Europe and Japan, Xbox 360 will ignite a new era of digital entertainment that is always connected, always personalised and always in high definition.

About Microsoft

Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software - any time, any place and on any device.

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