NEWS - Thursday, May 23, 2002

TDK And Activision Join Forces

TDK Mediactive and Activision Announce Worldwide Alliance to Co-Publish Video Games Agreement Includes DreamWorks’ `Shrek’ Sequel and One Activision Title CALABASAS & SANTA MONICA, Calif.--May 23, 2002-- TDK Mediactive, Inc. and Activision, Inc. today announced a strategic agreement to co-develop and co-publish video games. The companies have agreed that their initial collaboration will be based on TDK Mediactive’s existing license to the sequel to DreamWorks Pictures’ blockbuster Academy Award®-winning feature film "Shrek." Additionally, TDK Mediactive and Activision have agreed to co-develop and co-publish a yet-to-be-announced title originating from Activision’s portfolio of video game brands. Throughout the co-publishing relationship, TDK Mediactive and Activision will maintain control over development and marketing of their respective properties and licenses, while pooling their substantial collective industry expertise, resources and global brands. Under the agreement, Activision will start to co-develop and co-publish games with TDK Mediactive based on the upcoming "Shrek" theatrical sequel. The first "Shrek" title to be released under this agreement is expected to launch on multiple platforms simultaneously with the theatrical debut of the "Shrek" sequel. "Shrek," the critically acclaimed computer-generated movie, was one of the highest-grossing films for 2001 with worldwide box-office revenues of nearly $500 million. Additionally, "Shrek" is the best-selling DVD title of all time and was the #1 video release for 2001. TDK’s "Shrek"-based interactive entertainment titles have been tremendously successful worldwide with sales exceeding one million units to date. The majority of the games are available in six languages in North and South America, Europe and Australia. TDK will continue to exclusively produce, develop, market and distribute original "Shrek"-themed games on all applicable platforms worldwide for calendar 2002 and 2003. "The agreement with TDK Mediactive fits perfectly with Activision’s strategy of developing and publishing games for all video platforms based on proven, brand-name properties," said Ron Doornink, President and COO of Activision, Inc. "And what a property to collaborate on. `Shrek’ reinvented the traditional fairy tale with its colorful characters, sarcastic wit and rich computer-generated animations, and today is one of the premier animated film and video game franchises. We are thrilled to extend our existing Activision Value relationship with TDK Mediactive into next-generation platform games, and believe the properties we intend to share will form the beginning of a very powerful relationship." "Our agreement is a win-win opportunity for TDK Mediactive and Activision," said Vincent Bitetti, TDK Mediactive CEO. "It unites the substantial strengths and worldwide reach of both our organizations while serving to both expand and diversify both of our businesses. In teaming with Activision, we are substantially expanding the market and brand `fire power’ we can collectively bring to games, leading off with our larger-than-life `Shrek’ franchise. We are confident this partnership will lead to even greater success with the `Shrek’ sequel games." "TDK Mediactive was early to recognize and champion the value of the `Shrek’ video game franchise and did a phenomenal job in managing the property," said Brad Globe, head of DreamWorks Consumer Products. "We view their teaming with Activision as a significant boost for `Shrek,’ as under their combined effort and reach we expect the `Shrek’ franchise will achieve even greater heights of interactive game play and retail performance."


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