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ACTIVISION SET TO EXPAND HEAVY GEAR UNIVERSE WITH GROUND-BREAKING 3-D HARDWARE-ONLY SEQUEL

Highly Anticipated Sci-Fi Combat Sim Heavy Gear 2 To Feature New Engine, Squad-Based Play, Stunning Environments

San Mateo, CA, April 10th, 1998 -- Propelling the sci-fi combat simulation genre to a new level of realistic brutal warfare, Activision, Inc. (Nasdaq: ATVI) announced today its plans to extend the Heavy Gear universe with the creation of its first 3-D hardware-only game, Heavy Gear 2, for release this winter.

Built on an entirely new engine that takes full advantage of emerging 3-D technologies, Heavy Gear 2 thrusts players into next-generation giant robot combat with lightning-fast action and ultra-realistic, complex battlefields that include more vehicles and structures, indoor fighting and realistic weather effects.

"Heavy Gear 2 takes advantage of hardware-accelerated technology by allowing players to pilot fluid, anime-like Gears through realistic, immersive battlefields while maintaining fast frame rates," stated Alan Gershenfeld, Senior Vice President, Activision Studios. "Gamers will now have more control over each mission as they execute real squad-based battle tactics, including flanking maneuvers and ambushes."

Heavy Gear 2 enlists players as the leader of an elite strike force that operates deep behind the enemy lines of a distant hostile planet. Players will embark on a series of covert missions to reconnoiter, destroy, sabotage and mislead enemy forces.

Piloting some of the most elite mechanized units ever created, players can send complex commands to squad mates, use diversionary tactics to ambush enemies and travel across diverse multi-player environments such as swamps, arctic zones, volcanic areas and urban base sites, as they wage war against sophisticated enemies that will adapt to squad tactics and lay down cover fire to protect each other.

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Activision, Inc. is a worldwide developer and publisher of interactive entertainment software for Microsoft Windows compatible personal computers, as well as Sony PlayStation, Sega and Nintendo game systems. Activision is headquartered in Santa Monica with offices in Madison, Wisconsin, the United Kingdom, Germany, Japan and Australia.

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