SEGA(r) Puts The Sonic Into Panasonic Mobile Phones

Los Angeles, CA (May 18, 2005) - Panasonic, the leading brand by which Matsushita Electric Industrial Co., Ltd. is known, today announced that it has secured the rights to feature SEGA's* blockbuster game, Sonic the Hedgehog, on its new series of mobile phones. As previewed on SEGA's booth at the E3 premier game show in the US, this is the very first time the game has been installed on a mobile phone and will be available in handsets launched by Panasonic from Q3 this year.

Sonic the Hedgehog will be pre-installed on six new Panasonic phones including the company's flagship phone of the year, the VS3, which is perfect for playing games on with its superior screen of 16 million colors and outstanding brightness of 300 candela. Sonic the Hedgehog will also feature on the following Panasonic handsets being launched in 2005: VS7, SA6, SA7, MX6 and MX7.

Sonic the Hedgehog was first introduced on the SEGA MEGA DRIVE* in 1991 and since then 38 million copies have been sold worldwide, making it SEGA's top selling game of all time. Users will now be able to help Sonic face his arch-enemy Dr. Eggman through their mobile, with the same high speeds and high-resolution images used on the SEGA MEGA DRIVE version. The mobile version of Sonic also comes with the new 'ranking' and 'difficulty settings' functions and all stages (apart from the special stages) found on the SEGA MEGA DRIVE.

Masatoshi Kitade, Director for Global Marketing, Panasonic Mobile Communications, said: "This is a very exciting partnership, not only for Panasonic and SEGA but also, I'm sure, for Sonic the Hedgehog fans across the world who can now play their favorite Sonic game on their mobile phone. Sonic the Hedgehog is truly an iconic character and the game is legendary, making it the perfect partner for Panasonic.

"The advanced features of the VS3 make it a superb mobile to enjoy Sonic the Hedgehog on. It's slim, stylish and feature-rich allowing consumers to enjoy games as well as their phone without compromising on quality."

Panasonic plans to actively install popular games, such as Sonic the Hedgehog, on its mobile phones, and also increase the availability of music and movie content as part of its strategy to expand content for the ever-advancing mobile phone market.

Summary

Panasonic VS3

1.3 megapixel camera

Video capture & playback

2.2 inch QVGA display with 16 million colors & 300-candela brightness

X-Changeable Cover^TM with matching content

One-push auto open button

Messaging illumination

3D games

Java MIDP 2.0

MP3 ringtones

Multimedia messaging

18mm thin clamshell design

WAP 2.0 browser

Tri-band

GPRS Class 10

Infrared

USB

Note to editors

"Sonic the Hedgehog" and "MEGA DRIVE" are either registered trademarks or trademarks of SEGA Corporation. SEGA is a registered trademark of SEGA Corporation.

About SEGA Corporation

SEGA Corporation is a worldwide leader in interactive entertainment both inside and outside the home, encompassing consumer business, amusement machine sales and amusement center operations. 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. For further information, please visit http://sega-europe.com or http://www.sega.com

About Panasonic

Best known by its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of US$81.44 billion for the year ended March 31, 2005. The company's shares are listed

on the Tokyo, Osaka, Nagoya, New York (NYSE:MC), Euronext Amsterdam and Frankfurt stock exchanges. For more information, visit the company's website at http://panasonic.co.jp/global/index.html

Panasonic Mobile Communications Co., Ltd., a subsidiary of Matsushita Electric Industrial Co., Ltd. and whose headquarters are based in Yokohama, Japan, is a worldwide leader in the development and manufacture of mobile communications products. As one of the main business domains for Matsushita Electric Industrial Co., Ltd., best known for its Panasonic brand digital electronics, Panasonic has been developing cutting edge technologies since its establishment in 1958, including the world's first 3G video handset for the Japanese market in 2001. Panasonic is committed in providing added-value solutions to end-users through its mobile communication products. For more information, please visit http://panasonic.co.jp/pmc/company/en/index.html

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