Acclaim and Sega reach distribution agreement.

Global Rights and a September release date for "F355 Challenge" on Sega Dreamcast' are confirmed by Sega and Acclaim.

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Global Rights and a September release date for "F355 Challenge" on Sega Dreamcast' are confirmed by Sega and Acclaim.

LOS ANGELES, CA (MAY 11, 2000) - Acclaim Entertainment, Inc. (NASDAQ: AKLM), and Sega" Enterprises, Ltd. today announced at the Electronic Entertainment Expo that the companies have entered into an agreement to distribute the Sega Dreamcast0/00 version of the highly-praised arcade game F355 Challenge.

The agreement provides Acclaim with distribution rights in North America and Europe for a Sega Dreamcast version of Yu Suzuki's arcade racing simulation. His legacy includes some of the industry's greatest games such as "Out Run'," the "Virtua Fighter'" series and "Virtua Racing'." F355 Challenge is a highly realistic racing simulation featuring the F355 Challenge racing car and it boasts extraordinarily smooth graphics, ultra realistic circuit visuals and unprecedented realistic car control. The game features six circuits, all of which are accurately modeled, including stadiums with detailed graphics. After the race is complete, drivers are given the data on their racing line, time, RPM, speed and gear selection. F355 Challenge also incorporates a training mode with AI to assist drivers with voice and visual guidance.

"Sega is pleased to be partnering with Acclaim, who has a long-standing relationship with Ferrari, to bring this arcade hit to Sega Dreamcast," said Peter Moore, president and COO, Sega of America. "With F355 Challenge, Yu Suzuki has set an all new standard in realistic racing games and we expect that this will be a top-seller on Sega Dreamcast."

Commenting on the publishing agreement, Rod Cousens, President and Chief Operating Officer, Acclaim International, said, "We are simply thrilled to have reached this agreement with Sega. This is the most impressive racing simulation in its genre. Gamers that want to experience the real thrill of driving Ferrari can expect zero compromise in F355 Challenge."

The partnership between Sega and Ferrari made it possible to realize this racing simulation based on extensive research and cooperative testing by both parties. The developer also visited Ferrari's Italian headquarters to gather and research all relevant data on the car. This results in an on-screen depiction and in-game handling of the 355 Challenge which is accurate down to the most intricate details. The result is a game which attempts to bring gamers closer than ever before to experiencing the real thrill of Ferrari 355 Challenge racing. Acclaim International will release F355 Challenge for Sega Dreamcast in late 2000.

Note to Editors - Earlier this month Acclaim announced that, as part of a 5 year agreement with Ferrari, Ferrari 360 Challenge and Ferrari Grand Prix games were due for release as part of their PlayStation(R) 2 computer entertainment system line-up.