FOR IMMEDIATE RELEASE

SIERRA AND ARGONAUT INK DEAL FOR UPCOMING NEXT-GENERATION CONSOLE GAMES Sierra to Publish New SWAT Games Using Argonaut's Action Shooter Title, Kleaners

BELLEVUE, WA., (August 31, 2001) - Sierra today announced an agreement with UK-based Argonaut Software Ltd. to develop upcoming console games for Sierra. This relationship will allow Sierra to publish entirely new products based on their award-winning SWAT(tm) series, using Argonaut's action shooter game, internally known as Kleaners.

"Taking advantage of Argonaut's new engine and their team's design expertise, we'll be able to create unique console experiences for gamers," said Rod Fung, executive producer at Sierra. "Combining the tactical elements found in Sierra's SWAT titles, with all out squad based shooter excitement, this partnership will allow us to create a new kind of console game with the immediate action console gamers have come to expect."

"SWAT 3 inspired the creation of Kleaners, as we're big fans of the SWAT franchise," says Joss Ellis, COO Argonaut Software. "The Kleaners engine has been designed from the ground up to give the game its own unique look. We have developed our own stylistic variations to give the game its distinct characteristic feel and differentiate it from other games in the genre. I think working with Sierra, we're poised to make a tremendous impact on the console market."