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EA To Publish First Release by New Molyneux Company, LionHead Studios

San Mateo, CA, August 6, 1997 -- Electronic Arts (Nasdaq:ERTS), a leading global interactive entertainment software company, today announced the signing of an exclusive worldwide agreement with gaming industry pioneer Peter Molyneux to publish and distribute the first release from his new development company, LionHead Studios, of Surrey, England. Financial terms of the agreement were not disclosed.

Molyneux, who co-founded Electronic Arts (EA) subsidiary Bullfrog Productions, Ltd. with Les Edgar in 1987, is considered as one of the industry's most creative and commercially successful computer game developers. Among the award-winning Molyneux-designed games are Populous, Powermonger, Syndicate, Magic Carpet and Theme Park. His latest creation, Dungeon Keeper, has already reached number one in United Kingdom and Germany, and is quickly establishing itself as a top-seller in the United States.

In announcing the new agreement, Don Mattrick, Electronic Arts' Executive Vice President, said, "In the past two years, Les Edgar and the Bullfrog management have been doing an excellent job of continuing to build Bullfrog into a world class studio while Peter has concentrated on the completion of Dungeon Keeper. Undoubtedly Peter's contribution to Bullfrog's success has been immense. So we are pleased that he will remain within the EA family through our publishing and distribution agreement with LionHead."

Molyneux added, "I'm tremendously excited to be starting over again. And I'm determined that LionHead's first release will be my best game ever. After all, the future reputation of the company is at stake. We had offers from other major publishers, but ultimately we chose Electronic Arts. Their experience in the computer games market and their global marketing and distribution network has made them the most successful computer software publisher in the world. EA was the obvious choice."

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LionHead Studios was founded by Peter Molyneux and his associates in July 1997. Headquartered in Surrey, England, many industry insiders are expecting that given Molyneux's previous track record, the company will become one of the entertainment software industry's most creative and innovative development houses.

Electronic Arts (EA), headquartered in San Mateo, California, is a leading interactive entertainment software company. Founded in 1982, EA posted revenues of $625 million for fiscal 1997. The company develops, publishes and distributes software worldwide for personal computers and advanced entertainment systems such as the PlayStation, Nintendo 64 and Sega Saturn. Electronic Arts markets its products worldwide under five brand names: Electronic Arts, EA SPORTS, Origin Systems Inc., Bullfrog Productions Ltd. and Jane's Combat Simulations. EA has international subsidiaries in Australia, Canada, France, Germany, Japan, Singapore, South Africa, Spain, Sweden, and the United Kingdom, and North American development operations in San Mateo, Calif.; Baltimore, Maryland; Austin, Texas; Seattle, Washington; and Vancouver, British Columbia.

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