EPIC GAMES PURCHASES REALITY ENGINE™ AND HIRES CHIEF ARCHITECT AND PRIMARY DEVELOPER, TIM JOHNSON

RALEIGH, May 11th, 2005 – Epic Games, one of the world’s leading developers of cutting-edge computer and video games and the pioneer of the award-winning Unreal® Engine, today announced that it has completed the purchase of the Reality Engine™ from Artificial Studios and hired its founder, and lead engine programmer, Tim Johnson. Tim will join the Unreal Engine 3 development team effective immediately and be part of Epic’s presence at the Electronic Entertainment Expo in Los Angeles, California next week.

Epic has purchased the Reality Engine outright, including intellectual property rights, trademarks, and copyrights. Epic does not intend to continue sales, development, or support of the Reality Engine, but will review its technologies for inclusion into Unreal Engine 3. Developers who had purchased Reality Engine licenses prior to this sale will be offered upgrades to Unreal Engine 3 at significantly discounted prices and should contact licensing@epicgames.com for more details.

Unreal Engine 3 provides a pathway to both PC and next generation console development, as demonstrated by the recent announcement that major game developer Silicon Knights will use Unreal Engine 3 exclusively for its next generation games. Other recently announced licensees include Bioware, the console game developer of the year, and renowned publisher Midway, which has acquired a studio-wide license.

“I am thrilled about joining the team at Epic Games” said Tim Johnson. “I’m a long-time fan of the Unreal games and technology, and I am proud to be joining a company I consider to be a world leader in both game development and next generation middleware.”

“We’re very excited to have Tim Johnson join Epic Games,” said Epic founder and CEO, Tim Sweeney. “He brings six years of engine development experience to the Unreal Engine 3 development team, and he’s already brimming with ideas on how to improve our technology. Tim is a great fit for Epic – he clearly understands all sides of the licensing business, from engineering to customer support to business development. He will have a huge positive impact on our company and our engine licensees.”

About Unreal Engine 3

The award-winning Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset.  Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3’s new toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at www.unrealtechnology.com.

About Epic Games

Epic Games Inc., based in Raleigh, NC and established in 1991, is a developer of cutting-edge computer and video games. The company is best known as the creator of hit PC 3D action games Unreal and Unreal Tournament, both award-winning blockbuster hits having each sold more than one million copies. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including, 2002 Console Game of the Year winner, Tom Clancy’s Splinter Cell ™ from Ubi Soft; PC Gamer’s 2000 Game of the Year, Deus Ex from Ion Storm/Eidos; America’s Army: Operations, from the United States Army, and Harry Potter and the Sorcerer’s Stone (PC) from Electronic Arts. Additional information can be obtained through Epic's Web site at www.epicgames.com.

Unreal is a registered trademark of Epic Games Inc. Reality Engine is a trademark of Epic Games Inc. All other trademarks are the property of their respective companies.

For More Information Contact:

Nicola Kirby
Little Brown Dog for Epic Games
+44 (0) 1372 818 776
kirby@littlebrowndoggy.com