NEWS - Tuesday, December 5, 2000

Microsoft Acquires Digital Anvil
Addition of Austin-Based Development Studio Continues Microsoft Games Division Growth
REDMOND, Wash. - Dec. 5, 2000 - Microsoft Corp. today announced it has reached a preliminary agreement to acquire Digital Anvil Inc., a premier games developer based in Austin, Texas. Under the terms of the pending
acquisition, Microsoft would gain the rights to select Digital Anvil titles,
including "FreeLancer," the highly anticipated space-combat simulation game,
as well as a yet-to-be-announced title currently in development for the
Xbox(tm) video game system, scheduled for release by Microsoft in fall 2001.
Microsoft and Digital Anvil have worked closely since 1997 to develop
ground-breaking games for the PC platform. The addition of Digital Anvil
comes on the heels of other successful game acquisitions by Microsoft,
including FASA Interactive Technologies Inc., creators of the best-selling
"MechWarrior(tm)" franchise; Access Software Inc., creators of "Links(tm)"
golf simulation titles, the most popular PC golf franchise; and Bungie
Software Products Corp., creators of the upcoming "Halo," recognized as one
of the best original games coming to market. Following the planned
acquisition, Digital Anvil will continue to create titles from its Austin
headquarters as part of Microsofts growing pool of in-house development
talent.
"The acquisition of Digital Anvil will strengthen our commitment to
producing top-quality PC and Xbox titles," said Ed Fries, vice president of
games publishing at Microsoft. "FreeLancer is a true expression of Digital
Anvils innovative spirit. By combining our internal resources with the
Digital Anvil teams development talent, we will ensure the realization of
their creative visions."
In a related announcement, Chris Roberts, founder and CEO of Digital Anvil,
said he would be departing the company to pursue other creative endeavors.
Roberts will, however, continue to work with Digital Anvil through the
completion of "FreeLancer." Serving as creative consultant, he will continue
to craft the games intricate storyline and serve as an adviser to the
development team.
"This acquisition is a positive growth opportunity for Digital Anvil,"
Roberts said. "Under the Microsoft umbrella, FreeLancer and other games
will be supported by a strong infrastructure and realized in the spirit in
which they were conceived."
Slated for release for the PC in late 2001, "FreeLancer" was honored with
four of the coveted "Game Critics" awards at the 1999 Electronic
Entertainment Expo (E3), including Best of Show; Best Game, PC; Best
Simulation; and Outstanding Achievement in Graphics. "FreeLancer" features a
detailed 3-D sci-fi universe and innovative gameplay intertwined with an
intriguing storyline.
Source: http://www.xbox.com/