BioWare to Develop Xbox Game for Microsoft

REDMOND, Wash., Aug. 6, 2002 — Microsoft Corp. today announced that BioWare Corp., which specializes in creating computer and console video games, has signed a deal with Microsoft® Game Studios to develop an exclusive first-party Xbox (TM) game to be published by Microsoft. BioWare is known for its extremely popular “Baldur’s Gate (TM) ” role-playing game (RPG) series, of which more than 4 million copies have been sold worldwide. Currently BioWare, in conjunction with LucasArts Entertainment Company LLC, is developing an RPG for the Xbox video game system titled “Star Wars®
: Knights of the Old Republic.” BioWare recently released “Neverwinter Nights (TM) ,” which debuted at No. 1 in North America and remained there in its first two weeks at retail.

“I’m very excited about this new alliance between Microsoft and BioWare,” said Ed Fries, vice president of Xbox Game Content at Microsoft Game Studios. “These guys are some of the most creative developers in the world. We’re looking forward to working with them to bring the creativity and great gameplay they’re known for to Xbox.”

“This opportunity to work on a brand-new intellectual property owned by BioWare as a first-party Xbox developer for Microsoft is very exciting to us,” said Dr. Ray Muzyka, joint CEO of BioWare.

“Microsoft clearly shares BioWare’s vision in creating first-rate games, and the team at BioWare is looking forward to working with it,” said Dr. Greg Zeschuk, joint CEO of BioWare.

About Xbox

Xbox ( http://www.xbox.com/) is Microsoft’s future-generation video game system that delivers the most powerful games experiences ever. Xbox empowers game artists by giving them the technology to fulfill their creative visions as never before, creating games that blur the lines between fantasy and reality. Xbox is now available in North America, Japan, Europe and Australia.

BioWare Corp. is an electronic entertainment company that develops computer and console games. “Neverwinter Nights,” recently published by Atari, was the most anticipated RPG of the year, winning numerous industry and trade show awards throughout its development. Previously published projects include “Shattered Steel (TM) ,” the genre-defining “Baldur’s Gate” role-playing game series, “MDK (TM) 2” for Dreamcast and PC, and “MDK2: Armageddon” for PlayStation®
2. The award-winning critically acclaimed expansion pack “Baldur’s Gate II: Throne of Bhaal” continued BioWare’s RPG leading tradition of massive story development and engaging gameplay. BioWare’s developers are currently at work on “Star Wars: Knights of the Old Republic” to be published by LucasArts, for the Xbox and PC. Development continues on a “secret” new project for PC, which is not yet signed to a publisher, as well as the Xbox console game to be published by Microsoft. BioWare information can be found online at http://www.bioware.com/.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the PC, Xbox video game system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse game portfolios for the PC ( http://www.microsoft.com/games/), including such franchises as “Age of Empires®
,” “Flight Simulator” and “Zoo Tycoon (TM) “; Xbox ( http://www.xbox.com/), including such franchises as “Halo (TM) ,” “Project Gotham Racing (TM) ” and “NFL Fever”; and Zone.com (h http://zone.msn.com/ ), the official games channel for the MSN®
network and home to such hits as “Bejeweled” and “OutSmart (TM) .”

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

Information contained in this press release relates to a prerelease product that may be substantially modified before its first commercial release. Accordingly, the information may not accurately describe or reflect the product when first commercially released. The press release is provided for informational purposes only, and Microsoft makes no warranties, express or implied, with respect to the press release or the information contained in it.

Microsoft, Xbox, Age of Empires, Zoo Tycoon, Halo, Project Gotham Racing, MSN and OutSmart are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.

The names of actual companies and products mentioned herein may be the trademarks of their respective owners.

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