BLUE BYTE SOFTWARE SELL-IN 500,000 UNITS OF THE SETTLERS III WORLDWIDE

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Austin, TX, January 11, 1999 -- Blue Byte Software today confirmed 500,000 units have been sold into retail stores worldwide. The Settlers III is the latest title in a tremendously popular series of games, which has already sold over 1 million copies. It's an immense god sim with a real-time, strategic simulation of prosperity, tactics, combat and growth. It is currently available on PC CD-ROM in more than 3,700 retail stores throughout North America for the suggested retail price of $39.99 and has been translated into 13 languages including French, Italian, Polish, Spanish, and partial localization for Japan, Korea, Scandinavia (Denmark, Finland, Norway, Sweden), Taiwan, Greece, Portugal, Hungary, Czech Republic and Slovenia. You can purchase The Settlers III by clicking here. More information about The Settlers III can be found on the Internet at www.settler3.com

"I knew it would do well, but was totally surprised by the quantity sold so far. Aside from the quality entertainment The Settlers III provides, I think we can attribute partial success of sales to our copy protection." said Thomas Hertzler, Blue Byte's chairman and chief executive officer.

"As is the case of many publishers, our sales in the past were effected due to none existent copy protection, but our latest strict copy protection 'Sysiphus' has certainly paid off. The quantity of pirated versions has been significantly reduced. Official sales of The Settlers III allow us to continue developing and publishing our titles. Pirated versions of the game are job killers. The fewer games publishers sell, means the consumer pays higher prices. Blue Byte has always maintained a worldwide policy of making our high caliber products affordable; $39.99 in comparison to $59.99. However, tougher copy protection does have its pitfalls. I am aware that a small number of PC's are incompatible with this protection and we have a development team working to remedy this situation.

We promised new updates and features after the release of The Settlers III and I can assure our customers that we shall keep our promise. Just last month we gave a couple of free maps away and two more updates are on the way with new features." Hertzler concluded.

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Founded in 1988, Blue Byte has consistently re-affirmed its position as one of the world's leading independent developers and publishers of PC games software with award-winning titles such as Jimmy Connors Pro Tennis Tour, The Battle Isle Series, The Settlers, Extreme Assault, Incubation and Game, Net & Match!

Blue Byte is synchronizing its international operations from offices in the USA, UK and Germany, with a development program that is both advancing the development of online and network gaming and broadening the audience for computer games. Taking advantage of the United States' more advanced Internet culture, Blue Byte has formed a partnership with their first US developer, Murder of Crows. Blue Byte is firmly on target in its goal to pioneer the popularization of computer gaming as a true global entertainment medium.

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