Microsoft Game Studios Selects Unreal Engine 3 For Next Generation Xbox Platform

Epic Games | *******UNDER STRICT EMBARGO UNTIL 11:30am (PST), 9th MARCH 2005*******

RALEIGH, March 9th, 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 its Unreal Engine 3 technology and tools will be used in games developed by and published by Microsoft Game Studios. Earlier this year, Epic became an official licensed tool and middleware provider for the next generation Xbox^® platform, and its partnership with Microsoft Game Studios further demonstrates its commitment to meet the challenges of developing for next generation hardware, and to deliver tools and technology that empower the development and publishing communities to efficiently deliver high quality, unique content.

In using Unreal Engine 3, the Microsoft Game Studios team will be able to truly exploit the unique hardware features of the next generation Xbox platform and harness the enormous power that its team has at its disposal.

"We only work with the best partners and utilize the best technologies, and Epic and the Unreal Engine 3 hit the mark on both those fronts," said Shane Kim, General Manager, Microsoft Game Studios. "Our teams are creating incredible games and content for the next generation Xbox platform, and by integrating Unreal Engine 3 into our development infrastructure we are able to really maximize our teams' performance and deliver the quality content and creativity that the market has come to expect from us."

Mark Rein, vice president of Epic Games agrees, "We are hugely excited that Microsoft Game Studios have selected Unreal Engine 3 for its next generation Xbox platform games. It's an opportunity for us to show the industry the true capabilities of our tools and technologies and is a testament to the incredible amount of hard work by our teams here to deliver tools and technologies that are 100% tuned into the needs of next generation development. It further demonstrates our ability to deliver the most flexible, most productive tools and technology in the market today."

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.unrealteachnology.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^TM 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.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox^® video game system, the Windows^® operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/games), including such franchises as Age of Empires^®, Flight Simulator and Zoo Tycoon^®; Xbox (http://www.xbox.com), including such games as Fable^® and franchises as Halo^®, Project Gotham Racing^® and MechAssault^®; and MSN^® Games (http://www.games.msn.com), the official games channel for the MSN network and home to such hits as "Bejeweled" and "Hexic^TM."

Unreal is a registered trademark of Epic Games, Inc. All other trademarks are the property of their respective companies. Midway has provided the www.epicgames.com and www.unrealtechnology.com links solely as a convenience for you. The information on these sites has been prepared by third parties, and Midway does not monitor, endorse or accept the responsibility for the content on non-Midway sites.

This press release contains forward-looking statements concerning future business conditions and the outlook for Midway Games Inc. (the "Company") based on currently available information that involve risks and uncertainties. The Company's actual results could differ materially from those anticipated in the forward-looking statements as a result of these risks and uncertainties, including, without limitation, the financial strength of the interactive entertainment industry, dependence on new product introductions and the ability to maintain the scheduling of such introductions, the upcoming console platform transition and other technological changes, dependence on major platform manufacturers and other risks more fully described under "Item 1. Business - Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2003, and in the more recent filings made by the Company with the Securities and Exchange Commission.

Xbox is a registered trademark of Microsfoft Corporation in the Untied States and/or any other countries.

For More Information Contact:

Nicola Kirby

Little Brown Dog for Epic Games

+44 (0) 1372 818 776

[email protected]