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SEGA RELEASES THE FIRST ONLINE GAME FOR THE NINTENDO GAMECUBE WITH PHANTASY STAR ONLINE EPISODE I & II

SEGA's 20th Online-Enabled Game Offers Thrilling Online and Offline Action

SAN FRANCISCO - (October 29, 2002) - SEGA(R) of America today announced the release of "Phantasy Star Online Episode I & II (TM)" for the Nintendo GameCube(TM). The sequel to the wildly popular online RPG for the SEGA Dreamcast(TM), and latest installment of the legendary Phantasy Star series, "Phantasy Star Online Episode I & II" is the first online-enabled game for the Nintendo GameCube.

"Phantasy Star Online Episode I & II" delivers an all-new full-length online and offline Phantasy Star adventure. In addition to all the content from "Phantasy Star Online(TM)" and "Phantasy Star Online(TM) Ver.2" which is contained in Episode I, Episode II thrusts gamers into the perilous search for a mysterious scientist who has gone missing in the vast unexplored wilds of the planet Ragol.

Gamers can sign up to play "Phantasy Star Online Episode I & II" over the Internet using a dial-up modem or broadband adaptor for the Nintendo GameCube. The online service carries a monthly service charge of $8.95 and is available through Sega.co (TM). The price includes a hunter's license and access to online-exclusive content, including seasonal quests, downloads, special in-game items and more. Several quests are now available, including a Halloween-themed quest that is available now through November 4. New quests will be added on a regular basis.

"Phantasy Star Online Episode I & II" can also be played for free offline with up to four players using an all-new four-way split-screen mode.

"Hundreds of thousands of gamers have already experienced the "Phantasy Star Online" universe for the SEGA Dreamcast and now Nintendo GameCube owners have the chance to play this legendary RPG adventure series," said Mike Fischer, vice president, entertainment marketing, SEGA of America, Inc. "With 20 online games under our belt, SEGA is now bringing our unrivaled online experience to the Nintendo GameCube."

"Phantasy Star Online Episode I & II" also features a universal translation system that lets gamers chat online, whether they speak English, German, Spanish, French or Japanese, through a series of hundreds of pre-programmed phrases and expressions.

"Phantasy Star Online Episode I & II" is rated "T" for Teen and will be available at retailers nationwide for an MSRP of $49.99 on October 29.

About SEGA

SEGA(R) of America, Inc. is the American arm of Tokyo, Japan-based SEGA Corporation, a $3.5 billion corporation by market capitalization, recognized as a worldwide leader in interactive entertainment both inside and outside the home. 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. SEGA of America's Web site is located at www.sega.com.

About Nintendo

As the worldwide leader and innovator in the creation of interactive entertainment, Nintendo Co. Ltd., of Kyoto, Japan, manufactures and markets hardware and software for its popular home video game systems. The systems include Game Boy(R), Nintendo(R) 64, Game Boy(R) Advance and NINTENDO GAMECUBE(TM). Since the release of its first home video game system in 1983, Nintendo has sold more than 1.4 billion video games worldwide, creating enduring industry icons such as Mario(TM) and Donkey Kong(R) and launching such franchises as Zelda(TM) and Pokémon(R). As a wholly owned subsidiary, Nintendo of America, Inc., based in Redmond, Wash., serves as headquarters for Nintendo's operation in the Western Hemisphere.

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