AGEIA Inks Publisher-Wide Agreement with Major Russian Publisher 1C Company

MOUNTAIN VIEW, Calif. – June 27, 2006 – AGEIA™ Technologies, Inc., the pioneer in hardware-accelerated physics for games, today announced that Russian publisher 1C Company has signed a publisher-wide licensing agreement for AGEIA PhysX™ technology. The leading publisher and distributor of computer games in Eastern and Central Europe, 1C Company publishes and distributes titles from leading Eastern European developers, as well as titles of international publishers for the local market.

1C Company also has internal game development studios and a variety of external developers that will benefit from 1C Company’s license for AGEIA PhysX technology. As a result, gamers in the Russian market will soon have access to a broad selection of physics-optimized games that support the AGEIA PhysX processor, the industry’s first and only dedicated physics processing unit. 1C Company developers are currently incorporating the AGEIA PhysX SDK into several new games, with the first titles supporting the AGEIA PhysX Processor scheduled to be released later this year.

AGEIA PhysX Accelerator cards are available now from ASUS and BFG Technologies and in game PCs from Dell, Alienware, Falcon Northwestand others.

“AGEIA PhysX technology gives our development studios access to features that they could only dream about a short while ago,” said Nikolay Baryshnikov, International Sales Director of 1C Company. “Our agreement with AGEIA marks a new era in games, and we hope this is only the beginning of a long and successful relationship between the two companies.”

“As the largest publisher in in Eastern and Central Europe, 1C Company is a valuable strategic partner in expanding our presence in this important market for games,” said Kathy Schoback, vice president of content acquisition at AGEIA. “With more and more games integrating AGEIA PhysX technology, it won’t be long before the AGEIA PhysX processor is standard equipment for gaming rigs in Russia.”

About 1C Company

1C Company specializes in distribution, publishing and development of interactive entertainment products and business software. Founded in 1991, 1C has become the leading publisher and distributor of computer games in Eastern and Central Europe. 1C Company is widely acknowledged as a game developer and has several internal studios. Internal developments of 1C include IL-2 Sturmovik, IL-2 Sturmovik: Forgotten Battles, Aces Expansion Pack and Pacific Fighters. 1C Company works as a publisher and producer with over 30 independent development studios and has produced over 100 projects for PC and consoles. More information about the company is available at http://int.games.1c.ru

About AGEIA

AGEIA™ Technologies, Inc., is the pioneer of hardware-accelerated physics for PC games and has developed the world’s first dedicated physics processor, the AGEIA PhysX™ processor. The AGEIA PhysX processor powers massive and pervasive real-time interactive worlds that for the first time obey the laws of classical physics. AGEIA provides a world-class cross platform software development kit to simplify advanced physics programming for the PhysX processor, as well next-generation gaming consoles. AGEIA is changing the face of gaming by working with more than sixty leading developers and publishers to deliver the next generation of physically immersive entertainment. The company, headquartered in Mountain View, Calif., is privately-held. For more information visit http://www.ageia.com.