Take-Two Interactive Software, Inc. Announces the Formation of Broadband Studios, Inc

Rockstar Games, DMA Design, and Pixel Broadband Studios to be combined to form Broadband Studios, Inc.

Posted by Staff
New York, NY - March 9, 2000 - Take-Two Interactive Software, Inc. (NASDAQ:TTWO) announced today that it will combine Rockstar Games, DMA Design and Pixel Broadband Studios into one newly created subsidiary, Broadband Studios, Inc. ("BBS"). The business combination will become effective immediately following the completion of the Company's acquisition of Pixel Broadband Studios, which is expected to occur next week.

Broadband Studios, with worldwide headquarters in London, will independently focus on broadband interactive entertainment. BBS will continue to develop and publish original content for next-generation game consoles, with particular emphasis on the ongoing development of tools and technologies for the delivery of it's own games and third-party games to consumers who have, or will have, broadband access. BBS will pursue relationships with European and US broadband service providers to market and deliver its products to the multi-player broadband consumer of the future.

Pixel Broadband Studios, based in Tel-Aviv, has developed Jive, a proprietary technology platform designed to give high-speed, high-capacity digital broadband network operators the ability to offer "real-time" interactive games on-demand. The platform allows for subscription-based multi-player games, single-player "pay-for-play", and provides tools to support online gaming communities. The technology also allows existing game titles to operate on broadband networks without requiring end-users to actually download and install the software. Pixel Broadband Studios' software operates on multiple broadband access technologies including satellite, cable and telephone, as well as interactive devices such as personal computers, television set-top boxes, video game consoles and cellular telephones.

It is the Company's intent that Rockstar Games will bring a selection of video game publishing assets to the newly created company. Rockstar will maintain production and marketing offices in New York and London, a development office in Toronto, and a new business development office in San Francisco. In addition, Rockstar will bring it's extensive investments in the establishment of a top-level next-generation video game console product line-up to Broadband Studios.

Intellectual property rights contained within Rockstar Games will include the Company's rights to develop and publish video game versions of PC games from Bungie Software (i.e. Halo and Oni) and Gathering of Developers (i.e. Duke Nukem and Max Payne), the right to develop games based on Time Warner (NYSE:TWX) division New Line Cinema's Austin Powers series of movies, as well as the best-selling Grand Theft Auto series.

Grand Theft Auto developer DMA Design, with offices in Dundee and Edinburgh, U.K., will also be contributed to Broadband Studios. Both Rockstar Games and DMA Design will continue to be run by Mr. Sam Houser, who will serve as President of Rockstar Games.

Take-Two will maintain a ten-year distribution relationship with Broadband Studios for all traditional physical console goods marketed to retailers and consumers worldwide. The agreement will give the newly created company continuing access to Take-Two's Jack of All Games distribution network.

It is the Company's intent that Broadband Studios operate as a separate entity on a forward-going basis. As a result, the Company has begun the establishment of an independent Board of Directors and management team for BBS. Mr. Jeff Braun, founder of Maxis, Inc., creators of the best-selling SimCity series, will serve as Chairman of BBS, Mr. Gary Dale, former Vice-President of International Marketing for BMG Entertainment, will serve as Chief Executive Officer, and Mr. Ramy Weitz, founder of Pixel Broadband Studios will serve as

Take-Two, which will own 100% of the outstanding stock of Broadband Studios, plans to seek external sources of financing and capital liquidity for the new company. There can be no guarantee that the Company will be successful in these efforts.

Ryan Brant, Chief Executive Office of Take-Two Interactive Software, Inc., said, "The establishment of Broadband Studios Inc. is an extremely significant event for Take-Two and its shareholders. We feel that the creation of leading next-generation television based multiplayer games incorporating multicasting broadband technology, which are made accessible to the mass-market consumer, represents a huge market opportunity for our Company. By choosing to participate on an equity basis in this venture, and by contributing a finite and focused set of assets and management to the venture, Take-Two stands to benefit dramatically. Through the formation of BBS we have combined world class video game development, publishing and marketing assets focused on next-generation console systems, such as the Sony's PlayStation 2,with similarly strong broadband multiplayer gaming and interface technology, to create a pure play on the future of video game technology and distribution."