Sega Kicks Off Official Pre-Order Campaign for Retailers Nationwide

LOS ANGELES--(BUSINESS WIRE)--May 13, 1999--Sega® of America today announced the kick-off of its official pre-order campaign for Sega Dreamcast(TM) -- ``the ultimate gaming machine.''

By the time the system makes its US debut on September 9th, Sega retailers expect to secure more than 200,000 pre-orders. To ensure a successful launch, Sega already has all major retailers on board, including Babbages, Best Buy, EB, K-Mart, Sears, Target, Toys `R Us and Wal-Mart with their orders locked and loaded in the next few weeks.

To date, retailers who have been conducting ``underground,'' un-official pre-order campaigns have already secured more than 60,000 pre-orders based solely on the buzz Sega Dreamcast is generating alone -- many consumers have put down their hard earned dollars before seeing any games or knowing the launch date or price.

Further fueling an already strong buzz at the retail level, Sega announced a $199 price point, including a 56K modem, providing an incredible value to consumers. Sega Dreamcast will also be the only new system on the market this holiday season, a point not lost on retailers who traditionally make a significant portion of their sales during the fourth quarter.

``Dreamcast will be one of the hot holiday products for 1999,'' said Roxanne Koepsell, vice president of marketing, Babbage's Etc. ``As the only new videogame platform for the holidays, Sega Dreamcast has all the bells and whistles that gamers want, and Sega is supporting it with an over-the-top marketing campaign that is music to the ears of us retailers.''

In-Store

At retail, Sega will have a completely new look and feel with new interactive Sega Dreamcast kiosks designed to spur the sales of systems, software and peripherals. These interactives, designed by the Howard Marlboro Group (HMG), will make their debut at retailers nationwide this summer. Sega has hired HMG to provide an active team dedicated to the in-store training of all store salespeople on key points about Dreamcast and its games. The company will also ensure that all interactives are up and running in proper condition at all times, so consumers can enjoy the Sega Dreamcast experience at all retail locations.

Sega Dreamcast will be featured in 15,000 store fronts on the day of launch. Retailers nationwide will also be outfitted with new point of purchase (POP) displays, videos, posters and other Sega Dreamcast signage to draw attention to the product in stores.

``The response that Sega has had from retailers has been overwhelmingly positive,'' said Chris Gilbert, senior vice president of sales, Sega of America. ``After sharing our marketing, promotional and launch plans with them, retailers were lining up to place their orders -- that's a great sign for us this far out from launch.''

Sega Dreamcast will have 16 titles available at launch, with the number growing to 30 by the December holidays. Third-party titles now in the works will bring the total Sega Dreamcast game library count to more than 100 in 2000.

Along with its low price point, Sega Dreamcast will achieve other industry firsts at launch. Its 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, ten times more powerful than a Nintendo 64 and has four times the graphics processing power of the fastest Pentium II processor. In addition, Sega Dreamcast is the first console to utilize hand-held gaming through its Visual Memory Unit (VMU), which allows players to swap games with friends in the home, arcade or head-to-head using two VMUs.

Sega Dreamcast is also the first console to offer network capability. The 56K modem, which is packed in the box, will give the system full networked functionality, allowing consumers to play games over the Internet and giving them access to Internet capabilities, including e-mail, chat and browsing of the World Wide Web.

Sega of America 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 $3.0 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America's World Wide Web site is located at (http://www.sega.com).