PARIS (August 29th, 2000) Ubi Soft Entertainment S.A., one of the world leaders in interactive game publishing, and well-known U.S. based publisher Red Storm Entertainment, Inc., announced today their definitive agreement for Ubi Soft Entertainment to acquire Red Storm Entertainment.

Completion of the transaction is subject to customary closing conditions, including approval of stockholders of both companies and regulatory approvals, including U.S. antitrust review. Following completion of the transaction Red Storm Entertainment will be a wholly owned subsidiary of Ubi Soft Entertainment and a Ubi Soft brand, and it is anticipated that Red Storm will continue to be operated as an independent company.

It is anticipated also that most of the Red Storm Entertainment staff will remain intact in North Carolina. Red Storm’s UK office will join Ubi Soft in its Wimbledon office. All sales and distribution will be accomplished through a combined team which will be known as the Ubi Soft sales force.

Red Storm, a strong US brand
Red Storm Entertainment Inc. was founded in November 1996 by best selling author Tom Clancy and others. The company publishes hits such as Tom Clancy’s Rainbow Six and Tom Clancy’s Rogue Spear. The combined sales of these two games alone totaled more than 3 million copies globally, attracting both gaming enthusiasts and the general public.

The quality of Red Storm’s games have been met with critical acclaim in the gaming industry, especially the Rainbow Six franchise. Tom Clancy’s Rainbow Six has been released for PC CD-ROM, PlayStation®, Sega Dreamcast, Macintosh, Nintendo®64 and GAME BOY™ Color game console platforms. The game was voted 1999 action game of the year by PC Gamer. The sequel, Rogue Spear, was named 2000 action game of the year by both PC Gamer and Computer Gaming World and was elected the best multiplayer game of the show at ECTS in 1999. The intense squad-based action of Rainbow Six and Rogue Spear has made them two of the top multiplayer games played on Microsoft’s Gaming Zone.

With 1999 net revenues of $52 million, Red Storm is a multiple-media gaming company that produces, markets and publishes interactive computer games and other entertainment products. The company has a strong presence in North America which accounted for 70% of its 1999 sales. Red Storm has approximately 100 employees globally.

As part of the transaction, Tom Clancy entered into a new exclusive, long term license and endorsement agreement with Red Storm and Ubi Soft for all video and computer gaming platforms and products.

Leaping together to the next level of growth and profitability
Upon completion, this transaction with Red Storm is expected to be a major step in UbiSoft’s expansion program and is in accordance with its selective acquisition strategy. The strategy was initiated in May of 2000 with the acquisition of the Sinister Games (US) and Grolier Interactive Ltd. (UK) production studios. The acquisition of Red Storm strengthens Ubi Soft’s presence in the United States. With this acquisition North America will become Ubi Soft’s first market for the next fiscal year.

This latest acquisition also is anticipated to bring Ubi Soft one step closer to its goal of becoming one of the world’s top five publishers. The two companies complement each other, in terms of products, skills and global presence, offering the possibility of significant synergies. Moreover, Ubi Soft and Red Storm share the same approach to bringing quality interactive entertainment to the general public. The future group is especially keen to position itself as a leader of the online gaming industry.

“The games published by Red Storm will complement Ubi Soft’s product range and this acquisition will allow the group to reinforce its existing expertise in multiplayer action and strategy games. We are convinced that in the years to come this genre of game will undergo strong growth as witnessed by the dazzling success of Rainbow Six and Rogue Spear. Red Storm is indisputably the leader in multiplayer action and strategy games,” said Yves Guillemot, President and CEO, Ubi Soft Entertainment. “This agreement also gives Ubi Soft access to world-renowned licensees such as Tom Clancy, which will be added to our already strong brand portfolio.”

“This merger is good for Red Storm as consolidation is a natural and necessary phenomenon in any fast growing field,” said Red Storm Entertainment President and CEO, Doug Littlejohns. “While Red Storm has been remarkably successful throughout its short life, the acquisition by Ubi Soft, a major player in this industry, will ensure that together we are capable of leaping to the next level of growth and profitability.”

About Red Storm
Red Storm Entertainment, Inc. is a multiple-media gaming company that produces, markets and publishes interactive computer games and other entertainment products in several forms, including CD-ROM and console games, books, board games and related merchandise. Co-founded by best-selling author Tom Clancy, who has served as its Chairman of the Board, Red Storm Entertainment is based in Morrisville, North Carolina, and has its European headquarters in the United Kingdom. For more information call (919) 460-1776, or visit the company’s website at www.redstorm.com.

About Ubi Soft Entertainment
Ubi Soft Entertainment is a global producer, publisher and international distributor of interactive entertainment products. A leading company in the industry, Ubi Soft’s strong and diversified lineup has grown considerably over the past couple of years. As well as developing original properties, Ubi Soft has also steadfastly partnered with several high-profile companies and is dedicated to delivering consumers with quality videogame titles while offering blockbuster franchises. Founded in 1986, the company has offices in 18 countries including the United States, Canada, France, Germany and China and sells its products in a total of 52 countries. For more information about Ubi Soft, please visit http://www.ubisoft.com.