SEGA REVEALS DETAILS OF THE GOLDEN COMPASS VIDEO GAME

FOR IMMEDIATE RELEASE

SAN FRANCISCO & LONDON (February 27th, 2007) - SEGA® of America Inc. and SEGA® Europe Ltd. today revealed details regarding the development of the video game adaptation of the highly anticipated theatrical release, The Golden Compass, based on the first book in the award-winning His Dark Materials trilogy, by British author Philip Pullman. The game is being developed for multiple platforms and will ship Christmas 2007, just prior to the opening of the New Line Cinema motion picture on December 7, 2007. Featuring pivotal environments from the movie, the vivid characters are brought to interactive life, featuring the likeness of the movie's impressive cast, which includes Daniel Craig as Lord Asriel and newcomer Dakota Blue Richards as Lyra Belacqua.

Produced by New Line Cinema and Scholastic Media, The Golden Compass follows the screenplay adaptation of the first book in the acclaimed trilogy, capturing the exciting fantasy adventure set in a parallel world where giant armoured bears rule a kingdom, beautiful witches fly through the frozen skies, and human beings' deepest essence is manifest as talking animals that remain their faithful companion for life - their daemon.

Players can assume the role of Lyra, a young girl, along with her daemon Pantalaimon (Pan), as she travels through the frozen wastes of the North collecting special items in order to explore, evade and deceive her way through confrontations to rescue a friend kidnapped by a mysterious organisation known as The Gobblers. Lyra can also use her daemon and collaborate with in-game characters to journey through an epic quest to save not only her world, but ours as well.

Gamers can also take on the character of Iorek Byrnison, a great armoured polar bear who joins the quest. Iorek battles to protect Lyra during their journey using a riding mechanic and special attacks to fend off enemies, players will also be able to unlock secrets and mini-games using a mysterious truth-telling golden compass device called an alethiometer. The Golden Compass has 13 vast locations to explore including all-new, breath-taking environments not seen in the books or the film, on this massive journey of collaboration, exploration and the eternal struggle between good and evil.

This epic tale will be brought to the PLAYSTATION®3 computer entertainment system, Wii video game system, Xbox 360 video game and entertainment system from Microsoft, the PlayStation®2 computer entertainment system, the PSP® (PlayStation®Portable) system, the Nintendo DS and the PC for Christmas 2007.

The Golden Compass video game is being developed by Shiny Entertainment, best known for developing games based on the blockbuster The Matrix film franchise. Shiny was acquired by Foundation 9 Entertainment in October 2006. The Nintendo DS version is being developed by A2M. For more information on The Golden Compass, please visit the official movie site at http://www.goldencompassmovie.com/ or the SEGA Press site at www.sega-press.com .

About SEGA® of America

SEGA of America, Inc. is the American 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. SEGA of America's Web Site is located at www.sega.com.

About SEGA® Europe, Ltd.

SEGA Europe Ltd. is the European Distribution arm of Tokyo, Japan-based SEGA Corporation, and a worldwide leader in interactive entertainment both inside and outside the home. The company develops 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 Europe. SEGA Europe's Web Site is located at www.sega-europe.com.

About Shiny Entertainment

Part of Foundation 9 Entertainment, Shiny Entertainment develops engaging 3rd person action titles, including two titles based on the "The Matrix" film franchise. Shiny is located in Newport Beach, CA and can be found on the web at www.shiny.com. Shiny, along with Backbone, The Collective, Amaze, Pipeworks, ImaginEngine, and Digital Eclipse make up Foundation 9 Entertainment. The company's studios have developed more than 350 titles, including more than 30 in 2006 alone. Foundation 9 Entertainment employs more than 750 employees, and has offices in Los Angeles, Newport Beach, Emeryville, Vancouver, Kirkland, Austin, Boston, Eugene, and Charlottetown. For more information on Foundation 9 Entertainment, please visit: www.f9e.com.

About New Line Cinema Corporation

Founded almost 40 years ago, New Line Cinema is the most successful independent film company in the world. Its mission is to produce innovative, popular and profitable entertainment in the best creative environment. In addition to the production, marketing and distribution of theatrical motion pictures, the fully-integrated studio has divisions devoted to home entertainment, television, music, theater, merchandising and an international unit. In 2005, New Line partnered with HBO to form Picturehouse, a new theatrical distribution company to release independent films. A pioneer in franchise filmmaking, New Line's Oscar-winning The Lord of the Rings trilogy is one of the most successful film franchises in history. New Line is a division of Time Warner, Inc. (TWX).

About Scholastic Media

Scholastic Media (SM) is the entertainment and media division of Scholastic Inc., the global children's publishing and media company. A proven leader and innovator in the children's entertainment landscape and award-winning licensor and marketer of children's properties worldwide, SM ranks as one of the foremost producers of quality, family-oriented content for all platforms, including television programming, feature films, home entertainment, interactive products, and the Internet. Scholastic is a co-creator of the new multi-platform qubo network for children, which promotes literacy and positive values through entertainment. Provided by Scholastic, Dragon is the new pre-school series airing on qubo.

About Scholastic

Scholastic Corporation (NASDAQ: SCHL) is the world's largest publisher and distributor of children's books and a leader in educational technology. Scholastic creates quality educational and entertaining materials and products for use in school and at home, including children's books, magazines, technology-based products, teacher materials, television programming, film, videos and toys. The Company distributes its products and services through a variety of channels, including proprietary school-based book clubs, school-based book fairs, and school-based and direct-to-home continuity programs; retail stores, schools, libraries and television networks; and the Company's Internet site, www.scholastic.com.