SAN FRANCISCO- Feb. 9, 2000--
Continuing to drive the future of console gaming, Sega® of
America announced today that on March 2, 2000 the first fully
networked multiplayer videogame will launch on the Sega Dreamcast(TM)
Network -- three months earlier than expected. ``Chu Chu Rocket(TM),'' a
puzzle/action game by the renowned Sonic Team, will be the first of
many online titles available in 2000 for the Sega Dreamcast Network,
which is accessible only via the 128-bit, Internet-ready Sega
Dreamcast videogame console. Sega is now only one phase away from
offering consumers full 3D multiplayer games and the re-launch of the
Sega Dreamcast Network, which will be the ultimate online videogaming
destination. Additional networked first- and third-party Sega
Dreamcast titles, will follow throughout the year.

Almost 45 million online gamers in Europe and the US will be
using Internet-enabled consoles by 2004, compared with 28 million
people playing online through their PCs(1). Sega Dreamcast is the only
next generation videogame console that comes fully equipped with an
upgradable 56K modem and its own online gaming network -- the Sega
Dreamcast Network. Since the system's launch on 9-9-99, Sega has been
100% committed to expanding the gameplay experience for consumers via
this network. Sega has been rolling out a phased online strategy,
gradually making available e-mail, chat, new downloadable gameplay
elements and e-mail based games via the Network. Now, for the first
time in videogame history, consumers via Sega Dreamcast will be able
to play fully networked multiplayer games through a console.

Sega announced last month that Sega Dreamcast had reached a
sell-through milestone of more than 1.5 million units in North America
since its launch on September 9, 1999. This significant figure came
three months ahead of corporate predictions and just 30 days after the
company announced sales had reached the one million units sold mark.
Sega's record-breaking sell-through is attributed not only to the
great game library available, but to the future that consumers see
with the platform and the Sega Dreamcast Network.

With the Sega Dreamcast Network, Sega is effectively creating the
world's largest gaming community. Sega's vision is to provide console
gamers with a ``hassle free'' online gaming experience where consumers
pop in a GD-ROM, click on a button and are instantly immersed in a
highly interactive gaming environment with thousands of other gamers
on the Internet. For this reason, Sega Dreamcast was launched with a
built in 56K modem, allowing for full Internet functionality through
the Sega Dreamcast Network, including chat, e-mail, web browsing and
online gaming. Content for the Sega Dreamcast Network is currently
provided by Sega, Excite@Home and IGN.com. The system's preferred
Internet provider is AT&T WorldNet Services, the quickest and easiest
way to take the system online.

The five phases of Sega's network strategy have progressed as
follows:

• Phase 1: E-mail, Game Tips -- Since launch, the Sega Dreamcast
  Network has allowed users to communicate via e-mail, surf the
  Internet, congregate in chat rooms and access exclusive
  information on games, upcoming titles, cheat codes and share game
  information with other consumers.
• Phase 2: Enhanced Gameplay Elements -- Since launch, ``Sonic
  Adventure(TM)'' has given Sega Dreamcast consumers the unique
  opportunity to add new characters and enhanced gameplay elements
  to the game. Players can upload and download little ``Chao''
  characters, trade them with friends and learn more about them
  with information on the Dreamcast Network. Star Wars®: Episode
  I(TM) Racer from LucasArts (available Spring 2000) will allow
  players to post high scores to the Sega Dreamcast Network, adding
  an all new element of competition to gameplay.
• Phase 3: E-mail Based Games -- Beginning in February 2000, gamers
  will be able to enjoy the first e-mail based game -- ``Sega
  Swirl(TM).'' This colorful ``Columns'' style game allows players to
  e-mail their next move back and forth with another player. PC
  gamers can even get in on the action and e-mail the game with a
  Sega Dreamcast user.
• Phase 4: Fully Networked Games and Parlor/Puzzle Games Beginning
  with ``Chu Chu Rocket'' in March 2000, consumers will be able to
  play online games in real time against other players across the
  country. Following this title, gamers can expect to see new
  parlor/puzzle based games coming to the Sega Dreamcast Network
  from Spring 2000.
• Phase 5: Full 3D Multi-player Games and the Ultimate Online Video
  Gaming Destination -- From Fall of 2000 onward, the Sega
  Dreamcast Network will be the host of the first true 3D, and in
  the future, persistent world multi-player games designed for a
  video gaming console. Over the next six months Sega will be
  announcing what games will be brought to the Dreamcast Network.
  Expect the latest titles and best multi-player experience. Also
  in the Fall of 2000, expect to see the new online gaming portal
  from Sega. All the latest information, communities, tips,
  e-commerce, as well as news, previews and reviews of all games
  for Sega Dreamcast.
  

``Sega is a company that has set trends and broken new ground in
this industry for more than 40 years. That's why it's a natural that
Sega would be the company to take gamers into the next era -- online
networked gaming through a console,'' said Peter Moore, senior vice
president, Sega of America. ``Sega is 100% dedicated to expanding and
enhancing the gameplay experience for consumers via the Sega Dreamcast
Network and in the process, building a community where gamers can
share ideas, communicate and of course, play outstanding games.''

About the Sega Dreamcast Network

The Sega Dreamcast Network is the definitive gaming super source.
Sega Dreamcast Network users can receive regular updates via e-mail
detailing games, hints, cheats and information and the ability to demo
games and experience force feedback through the SegaJump Pack. The
Network offers access to chat rooms to discuss games, bulletin boards,
e-mail, e-commerce capability, online multiplayer games and even
``mini'' board, puzzle and card games. Through chat and e-mail,
consumers will be able to communicate with fellow gamers across the
street or around the world, effectively creating the world's largest
gaming community. Additionally, the Sega Dreamcast Network allows
gamers to download saved games with the Visual Memory Unit (VMU), a
128K card that acts as a personalized memory device for strategic and
portable game play

About Sega Dreamcast

Sega Dreamcast is available in the US with a built in 56K modem,
allowing for full Internet functionality through the Sega Dreamcast
Network, including chat, e-mail, web browsing and online gaming.
Content for the Sega Dreamcast Network is provided by Sega,
Excite@Home and IGN. The system's preferred Internet service provider
is AT&T WorldNet Services, the quickest and easiest way to take the
system online. Sega Dreamcast currently has more than 40 titles
available. Third-party titles currently in the works will bring the
total Sega Dreamcast game library count to more than 200 in the year
2000.

Sega Dreamcast's advanced 128-bit architecture makes it the first
console with evolutionary capabilities, allowing it to grow and change
to match advances in technology and the needs and desires of the
consumer. Sega Dreamcast is also the most powerful video game console
ever created. It is 15 times more powerful than a Sony
PlayStation(TM), ten times more powerful than a Nintendo® 64 and has
four times the graphics processing power of the fastest Pentium II
processor.

In the first 24 hours of availability, Sega Dreamcast netted over
$97 million at retail, more than tripling the past entertainment
industry record set by Star Wars: The Phantom Menace at $28 million on
its first day. In its initial four days, Sega sold a total of 372,000
Sega Dreamcast systems, easily surpassing the previous industry record
holder, Nintendo 64, which took six days to hit 350,000 when it
launched in 1996. In the first 13 days at retail, Sega Dreamcast sold
more than 514,000 units. Since it launched, Sega Dreamcast has sold
more than 1.5 million units, beating sales milestones set by other
high-profile consumer and electronics products such as Tickle Me
Elmo(TM) and Apple's iMac. Sega estimates that the company will sell 2
million units by the end of March 2000.

About Sega

Sega of America Dreamcast, Inc. is the arm of Tokyo, Japan-based
Sega Enterprises, Ltd. responsible for the development, marketing and
distribution of Sega videogame systems and videogames in the Americas.
Sega Enterprises, Ltd. is a nearly $2.5 billion company recognized as
the industry leader in interactive digital entertainment media,
offering interactive entertainment experiences both inside and outside
the home. Sega of America's World Wide Web site is located at
www.sega.com.