SEGA UNVEILS SONIC RIVALS DASHING ONTO THE PSP™ SYSTEM

Original Sonic Game Offers Lively Head-to-Head Competition

SAN FRANCISCO & LONDON (May 3, 2006) -- SEGA® of America, Inc. and SEGA® Europe Ltd. today announced the development of Sonic Rivals exclusively for the PSP™ (PlayStation®Portable) system. Sonic Rivals is a head-to-head competition between Sonic and his top rivals, where the gloves are off and winner takes all! Built from the ground-up, the engine allows gamers to rip through tracks in some high-spirited single player and wireless multiplayer action against friends as Sonic returns in a whole new racing-platformer with classic 2D gameplay in true 3D environments for gamers on the go.

What starts as a friendly competition between Sonic and Knuckles quickly intensifies as Shadow and other rivals jump into the action. Sonic Rivals allows gamers to utilize boost moves and power-ups to trip, shove, and vault over each other while hurtling towards the finish line at breakneck speeds. Players will negotiate wildly twisting 3D tracks while avoiding the insidious Dr. Eggman and his myriad of hazardous traps and contraptions.

"Sonic Rivals brings back the classic 2D platform gameplay that started it all, and douses it with vibrant three-dimensional environments," said Scott A. Steinberg, Vice President of Marketing, SEGA of America, Inc. "In this heated rivalry, gamers are tested to prove not only who's the fastest but who has the best head-to-head gameplay strategy."

In Sonic Rivals, gamers can play as one of four different characters from the Sonic Universe, each with separate fast and winding storylines. In addition, the extensive rewards system, which is based on collecting trading cards, allows players to customize their favorite characters. Connect via wireless to race against a friend, and put trading cards on the line for even more multiplayer challenges.

Debuting on the SEGA Genesis in 1991, Sonic The Hedgehog is one of the world's best-selling and most recognizable video game franchises and character. More than 44 million units later, the beloved blue hedgehog celebrates his 15th anniversary this year.

Sonic Rivals is slated for release in Fall 2006 and developed by the Vancouver-based studio of Backbone Entertainment, a division of Foundation 9 Entertainment. For more information on SEGA's Road to E3, please visit www.sega.com/e3. For screenshots and artwork, please visit the SEGA FTP site at: http://segapr.segaamerica.com.