Philips Media Transferred Multimedia Assets to Infogrames

Business Wire, Feb 3, 1997

SAN JOSE, Calif.--(BUSINESS WIRE)--Feb. 3, 1997--Philips Media, an operating division of Philips Electronics N.V., Eindhoven, The Netherlands, has signed a letter of intent to transfer its multimedia software publishing and distribution activities to Infogrames Entertainment.

With this transfer of Philips Media's activities, Infogrames Entertainment, Villeurbanne, France, becomes the strongest European entertainment company in interactive publishing and software distribution as well as a major contender in the U.S. market.

Last spring, Infogrames merged with Ocean International Ltd., the United Kingdom based holding company for U.S. interactive games developer Ocean of America, to broaden its presence in the global interactive marketplace.

The combination of Infogrames Entertainment's talents in publishing and development of interactive software titles and Philips Media's strength in European distribution will create a major global force in the interactive entertainment industry.

Philips Media and Infogrames Entertainment have been partners for many years. The two companies jointly developed and produced several successful international interactive software titles, including "International Tennis Open," "Chaos Control," "Asterix," "Marco Polo" and "Shaolin's Road."

Philips Media became a shareholder of Infogrames Entertainment in 1993 and has a seat on the company's board of directors. At the end of 1996, Philips Media held a 13.2 percent stake in Infogrames Entertainment. After completion of the current agreement, Philips will increase this minority stake in Infogrames Entertainment.

"We are pleased to be aligning ourselves with another strong European company. We have successfully restructured our U.S. and European publishing organization last year and have built up our distribution channels by acquiring Bomico (Germany), Ecudis (France) and Leisuresoft (United Kingdom)," Richard de Lange, president and CEO of Philips Media, said. "This transfer of our assets is a natural extension of a very successful relationship with Infogrames Entertainment, which has matured over the past decade. Philips is pleased to contribute to the creation of a company that will be a major player in the field of interactive multimedia worldwide."

"With this transfer, Infogrames Entertainment strengthens its position by expanding the assets we have to create and publish interactive titles. We are also able to develop a pan-European distribution strategy. The long and rich relationship with Philips Media taught us all to work together to help guarantee success," Bruno Bonnell, chairman and CEO of Infogrames Entertainment, said.

Infogrames Entertainment is the leading European designer and publisher of interactive entertainment software. Infogrames Entertainment is listed on the primary market of the Paris Bourse stock exchange. The Company's product offerings include more than 500 titles. Through its two brand names: Infogrames and Ocean, it maintains an international presence in all the major interactive markets. The products range from games to educational and personal productivity software for all the key interactive markets. For more information, call Christelle Gesler at 33 472 65 50 11.

Philips Electronics, The Netherlands, is one of the world's largest electronics companies, with sales totaling $40 billion (USD) in 1995. Its 270,000 employees in more than 60 companies develop and market lighting materials, semiconductors and components, consumer products, professional products and systems, and software and services. Quoted on the New York, London, Frankfurt, Amsterdam and other stock exchanges, it is a world leader in lighting products, color television sets, electric shavers and recorded music (Polygram). For additional information, call Marijke van Hooren at 31 40 2 732 180.

Ocean of America, a leader in interactive home entertainment software, is a wholly owned subsidiary of Infogrames Entertainment. Headquartered in San Jose, Calif., Ocean of America develops and publishes video games for the Nintendo 64; "Mission: Impossible" is the company's first game on the system for release in June. Ocean also develops and publishes games for Super Nintendo Entertainment System, Nintendo Virtual Boy, Nintendo Game Boy, Sega Genesis, Sega Saturn, Sony PlayStation, as well as computer entertainment software for PC and Macintosh personal computer platforms. To see what hot games are in progress, access Ocean through the World Wide Web at www.oceanltd.com . For additional information call Ocean of America at (408) 289-1200.

CONTACT: Ocean of America

Ray Musci, 408/289-1200

ocean@aimnet.com

or

The Bohle Company

Amy King/Susan Carlson, 310/785-0515

amy_king@bohle.com