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NOVALOGIC AND VIVENDI UNIVERSAL GAMES ANNOUNCE NORTH AMERICAN DISTRIBUTION AGREEMENT

Calabasas, CA — 7/7/2004 – Entertainment software developer and publisher NovaLogic, Inc. and Vivendi Universal Games (VU Games) today announced an exclusive multi-year strategic agreement, under which VU Games will become the sole distributor of NovaLogic products in North America. NovaLogic will continue to oversee development, production, marketing and PR for its products.

“This agreement combines top quality titles with top quality distribution,” commented Lee Milligan, President of NovaLogic. “ The strategic relationship will allow both companies to grow and prosper in the very competitive video game climate of today. We look forward to a long term partnership with one of the leading companies in our industry.”

“Military combat simulation games are a strong category in our industry, and NovaLogic has established itself as a leader in this market,” said Philip W. O’Neil, North American President of VU Games. “NovaLogic’s decision to partner with VU Games underscores our continued strength as a leading publisher and distributor in North America.”

The agreement covers all current and upcoming NovaLogic products and is effective July 9, 2004. This includes the recently launched, commercially and critically acclaimed modern combat multiplayer title, Joint Operations: Typhoon Rising which entered the NPD PC Charts at #3 last week, following just three days of sales.

About Vivendi Universal Games
Headquartered in Los Angeles, VU Games (www.vugames.com) is a leading global developer, publisher and distributor of multi-platform interactive entertainment. Its development studios and publishing labels include Blizzard Entertainment, Sierra Entertainment, Fox Interactive and Massive Entertainment. VU Games’ library of over 700 titles features multi-million unit selling properties such as Warcraft, StarCraft and Diablo from Blizzard; Crash Bandicoot, Spyro The Dragon, Ground Control, Tribes and Leisure Suit Larry.

About NovaLogic
Founded in 1985, NovaLogic Inc. is a developer and global publisher of games for the PC, PlayStation® game console and PlayStation®2 computer entertainment system and Xbox™ video game system. Based in Calabasas, California, the company's European arm, NovaLogic Ltd., has its offices in London, UK. Key game franchises include Delta Force®, Delta Force® - Black Hawk Down®, Joint Operations ™, Comanche® and F-22 Lightning®. For more information go to http://www.novalogic.com/

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