Sony Computer Entertainment America Inc. Expands Its Software Development Operation With Acquisition of Premier Games Creator Naughty Dog, Inc.

Sony Computer Entertainment America Inc. announced today that it has acquired Naughty Dog, Inc., an independent game development house responsible for creating the revolutionary Crash Bandicoot™ franchise. On the heels of the successful launch of the PlayStation®2 computer entertainment system, this acquisition further strengthens Sony Computer Entertainment America's capacity to create and distribute breakthrough entertainment content by leveraging the tremendous skills and expertise of the most successful and coveted U.S. developer in the gaming industry.

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As part of this deal, Naughty Dog's entire 30-person team becomes a wholly-owned subsidiary of Sony Computer Entertainment America Inc. and will operate under the Naughty Dog brand name. Financial terms of this arrangement are not public. Based in Santa Monica, Calif., Naughty Dog's day-to-day operations will continue to be run by the current management team and founders, Andrew Gavin and Jason Rubin, under the direction of Shuhei Yoshida, vice president, product development, Sony Computer Entertainment America Inc.

After introducing the world to Crash Bandicoot in 1996, Naughty Dog soon broadened the franchise with Crash Bandicoot 2: Cortex Strikes Back™, Crash Bandicoot: WARPED™, and CTR (Crash Team Racing)™. The highly rated titles have sold more than 20 million units collectively, and have broken many sales records across the globe. Since releasing CTR (Crash Team Racing) in 1999, Naughty Dog has thrown its entire team into developing new content for PlayStation 2.

"As one of the world's premier software developers with a proven track record of success we are pleased to increase our close working relationship with the talented animators, programmers and developers at Naughty Dog to create breakthrough content exclusively for PlayStation 2," said Shuhei Yoshida, vice president, product development, Sony Computer Entertainment America Inc. "Through this acquisition we can continue to ensure that we are providing the most challenging, revolutionary computer entertainment experiences that will exceed consumers expectations."

"Sony Computer Entertainment America's vision and leadership across the entire entertainment spectrum, as well as its approach to the videogame industry, first drew Naughty Dog to the company," said Jason Rubin, co-president, Naughty Dog, Inc. "Now, after a perfect publisher/developer relationship that has lasted six years, Naughty Dog feels that becoming a part of Sony Computer Entertainment America is the best way to share our unique style and philosophy of game development with PlayStation 2 enthusiasts."

"Naughty Dog picked the PlayStation as the winner in the last generation of consoles before the first unit hit shelves. Our determination to focus specifically on titles for the PlayStation was one of the primary reasons for our success," notes Andy Gavin, co-president, Naughty Dog, Inc. "We are equally confident, if not more so, in PlayStation 2. Joining Sony Computer Entertainment America allows us to focus on what we are sure will be this generation's premier system."

Naughty Dog develops cutting-edge technology, graphics and gameplay for titles released on next-generation game systems. Additional information can be found on the company's web site at http://www.naughtydog.com/ .

Sony Computer Entertainment America Inc. continues to redefine the entertainment lifestyle with its PlayStation® and PS one™ game console and the PlayStation®2 computer entertainment system. The PlayStation 2 computer entertainment system is set to revolutionize the home entertainment market, offering the most compelling interactive content and the capability to be used as a network terminal in the coming broadband era.

Recognized as the undisputed industry leader, Sony Computer Entertainment America Inc. markets the PS one game console and PlayStation 2 computer entertainment system and develops, publishes, markets and distributes software for the PS one game console and the PlayStation 2 computer entertainment system for the North American market. Based in Foster City, Calif., Sony Computer Entertainment America Inc. serves as headquarters for all North American operations and is a wholly-owned subsidiary of Sony Computer Entertainment Inc.

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SOURCE: Sony Computer Entertainment America Inc.

Contact: Molly Smith, 650-655-6044, or molly_smith@playstation.sony.com,
or Stephanie Iwamasa, 650-655-6083, or stephanie_iwamasa@playstation.sony.com,
both for Sony Computer Entertainment America Inc.

Website: http://www.naughtydog.com/

Website: http://www.playstation.com/

Website: http://www.scea.com/