AGEIA Technologies Completes Round of Financing

MOUNTAIN VIEW, Calif. – October 3, 2005 – AGEIA™ Technologies, Inc., the pioneer in hardware-accelerated physics for games, announced today its closing of $27 million in new financing. Led by Granite Global Ventures, financing also came from new investor Hercules Technology Growth Capital along with current investors Apex Venture Partners, BA Venture Partners, CID Ventures, HIG Ventures, and VentureTech Alliance.

The capital raised will be used to bring the AGEIA flagship PhysX™ processor to the hard-core gaming market and meet growing market demands for the company’s AGEIA PhysX SDK.

“At AGEIA we strive to make physical interactions ubiquitous within games, therefore we must work closely with game developers to create compelling content,” said Manju Hegde, founder and CEO of AGEIA. “The continued support from our strategic capital partners allows us to do that today, while continuing to explore future PhysX technology implementations.”

“Since AGEIA introduced the concept of hardware physics last March, we have seen an outpouring of support and enthusiasm from the gaming community,” said Scott Bonham, managing director at Granite Global Ventures. “In a market driven by user experience, AGEIA is well positioned for continued growth, and we’re proud to have contributed to that success.”

The AGEIA PhysX processor is the first and only dedicated physics processor on the market, and provides gamers with a much greater depth of physical interactivity than software-only physics. Developers and publishers who license the AGEIA PhysX SDK can create environments and effects that far surpass anything previously available in games.

About AGEIA

AGEIA™ Technologies, Inc. is a fabless semiconductor company and the pioneer of hardware-accelerated physics for games. Its flagship product, the physX processor, is the world’s first dedicated physics processing unit – a completely new hardware category. The physX processor and supporting software deliver the processing horsepower to calculate real-time interactive worlds. Developers can define these worlds to obey the laws of classical physics, or create their own physical laws that make their game a unique, hyper-dimensional experience.

AGEIA seeks to ignite innovation in the games industry by working with leading developers, publishers, add-in board vendors and console manufacturers to deliver the next generation of physically immersive entertainment. Consumer add-in boards and systems equipped with the AGEIA physX processor and games that take advantage of the technology will be available in late 2005. For more information visit http://www.ageia.com.

*AGEIA, PhysX and NovodeX are trademarks of AGEIA Technologies, Inc. All other products are trademarks of their respective companies.