Psygnosis Renews Exclusive Distribution Agreement on Its PlayStation Software Titles with Sony Computer Entertainment America

Business Wire, August 8, 1996

FOSTER CITY, Calif.--(BUSINESS WIRE)--Aug. 8, 1996--Psygnosis Ltd. announced today that the company has reached an exclusive agreement with Sony Computer Entertainment America (SCEA) to continue the U.S. distribution of its PlayStation software titles.

The new distribution agreement takes effect immediately and extends through the end of Psygnosis' fiscal year ending March, 1997.

"We're very pleased to have SCEA continue to distribute our next generation PlayStation game console titles in the U.S.," said Ray Sangster, U.S. general manager, Psygnosis, Ltd. "The initial U.S. sales success of Psygnosis' hit titles Destruction Derby and WipeOut can be attributed in great part to SCEA's diligent sales and distribution program. We anticipate that, by renewing our agreement with SCEA, Psygnosis will see the same results throughout 1996, and into 1997.

"As before, the quality of the software that Psygnosis will be introducing this fall is exceptional which is key to driving PlayStation hardware sales," remarked Shigeo Maruyama, chief executive officer, Sony Computer Entertainment America. "Our sales projections for Psygnosis' new software lineup are significant and we will fully support the company with a fine sales and distribution program."

Psygnosis continues to hold its leading position as the top developer and publisher of PlayStation software titles in Europe and is among the top three publishers in the US. Within the first year since SCEA's launch of the PlayStation game console, Psygnosis has enjoyed tremendous marketshare in the U.S., Europe and Australia with sales of Destruction Derby and WipeOut reaching one million units worldwide. The company plans to introduce 15 additional software titles to its PlayStation software title line-up over the next 9 months.

Psygnosis' upcoming PlayStation software titles include such blockbuster sequels as Destruction Derby 2 and WipeOut XL. Two additional titles to join Psygnosis 'racing' category, and anticipated to be huge successes, include Formula 1 and Thunder Truck Rally. Other top PlayStation software titles to be introduced include adidas Power Soccer, Codename Tenka, Discworld II, The City of Lost Children and Island of Dr. Moreau.

After carefully evaluating the US distribution program of its PlayStation games, Psygnosis came to the decision that SCEA offered the best sales and distribution package available. "We certainly can't miss having SCEA handle our upcoming titles," continued Sangster. "As the hardware producer, SCEA offers the broadest distribution as well as excellent retail promotion and merchandising opportunities."

Sony Computer Entertainment America, a division of Sony Interactive Entertainment Inc., is based in Foster City, Calif. The company markets the PlayStation game console for distribution in North America, publishes software for the PlayStation game console for the North American market, and manages the U.S. third party licensing program. Sony Interactive Entertainment Inc. is a subsidiary of Sony Corporation of America.

The U.S. division of Psygnosis Ltd., markets, sells and distributes PC CD-ROM entertainment software in the U.S. The company also markets Playstation game console software with sales and distribution being handled by Sony Computer Entertainment America. Psygnosis Ltd., presently employs over 340 people with publishing and development offices in the U.S., U.K. and across Europe. Working with over 30 development teams across the world with six internal development sites, the company is now the largest development house in Europe. Psygnosis is a wholly owned subsidiary of Sony Corporation of America. -0-

Note to Editors: Psygnosis' PlayStation and PC CD-ROM entertainment software is available at most mass merchants, computer and software specialty stores, or direct by calling 1-800-438-7794. Reviewer's copies and screen shots can be obtained from Mark Day, 415/655-5679 or Dana Oertell, 415/655-8060.

Visit us on the Net. Psygnosis' latest offering -- including current and future titles, game tips, contests, press releases and company information -- are accessible at http://www.psgynosis.com

CONTACT: Psygnosis, Inc.

Dana Oertell/Mark Day, 415/655-8060 or 415/655-5679