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BRODERBUND SOFTWARE ADDS THE MUCH ANTICIPATED WARLORDS III TO ITS SURGING ENTERTAINMENT STUDIO

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Strategic Studies Group of Australia signs deal to give Broderbund worldwide rights to Warlords III

Novato, CA, August 13, 1996 -- You've entered a realm of fantasy, where the keenest strategy will ultimately lead to survival and total dominance. You've also entered the world of Warlords, the highly successful and critically acclaimed strategy series developed by Australian Strategic Studies Group. Broderbund Software (NASDAQ:BROD) and Strategic Studies Group have signed an agreement providing Broderbund with worldwide publishing rights to Warlords III, the much anticipated third sequel in the series.

Broderbund continues its commitment to strengthen its place as one of the premiere entertainment studios in the competitive software industry. The deal follows on the heels of Broderbund's recent agreement with Presto Studios for rights to The Journeyman Project 3 and all future sequels. November's Comdex will offer additional information, screen shots and gameplay for both Warlords III and The Journeyman Project 3.

"Warlords III is an exciting addition to our growing entertainment line," said Ken Goldstein, Executive Publisher of Broderbund Entertainment Studios. "The development of this product gives us a highly addictive and much anticipated fantasy strategy game in our line-up. Strategic Studies Group has done well in delivering top-notch strategy games and we look forward to working together to make Warlords III a top seller."

Warlords III will be the fourth product in the best selling Warlords series. The first title in the series, Warlords was released in 1988 with Warlords II and Warlords II Deluxe releasing respectively in 1993 and 1995, all recognized as category leaders both critically and commercially. Warlords III is a fantasy strategy game where players begin with a single city and must explore and conquer their surroundings. While doing this, they must also contend with building their economic base and preparing and enlarging their army. This product will incorporate many new and exciting features, including a large array of gaming scenarios to choose from, enhanced multiplayer capabilities with full internet play, an expansive campaign mode which will link together groups of scenarios, as well as a new diplomacy system that will increase interactions between players and allow alliances.

"Broderbund has an enviable reputation for producing high class products and for working well with outside developers", said Ian Trout, President of Strategic Studies. "We are very excited to be working together and are certain that this collaboration will result in the best possible Warlords III product."

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Strategic Studies Group (SSG) has been creating strategy games since 1982 and has achieved a rare level of industry respect renewed year after year by its peers. SSG's artificial intelligence routines have always challenged gamers to perform at the highest levels and are widely praised as one of the best in the business. SSG has a longstanding reputation for superbly crafted games with extremely reliable code and features which were showcased in previous versions of the long running and highly successful Warlords Series. SSG continues to display its mastery of the craft of strategy gaming with innovative and keenly anticipated game releases.

Broderbund Software, Inc. develops, publishes and markets a diversified line of consumer software for use in homes, schools and small businesses. Broderbund Entertainment Software has a history of top-selling game titles, beginning with Choplifter and including Lode Runner, Prince of Persia, Myst and In the 1st Degree, to name a few. Since its founding in 1980, Broderbund has pioneered innovative award-winning products that take advantage of the latest technologies. Broderbund has a successful track record of identifying and capitalizing on emerging trends through its studio development approach.

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