Electronic Arts to acquire leading European software developer, Bullfrog Productions Ltd.

SAN MATEO, Calif.--(BUSINESS WIRE)--Jan. 6, 1995--Electronic Arts (NASDAQ:ERTS), a leading global interactive entertainment company, Friday announced it has reached a definitive agreement to acquire Bullfrog Productions Ltd., a premier European interactive game developer, based in Surrey, England.

Bullfrog, best known for its innovative strategy and simulation games such as Populous and Powermonger, was founded in 1987 by Peter Molyneux and Les Edgar. Today, the 45-person firm is Europe's number one PC CD-ROM software developer with a series of six consecutive number one hits.

To date, Bullfrog has developed eight titles on CD-ROM and floppy disks for home computers and dedicated game machines, which represents over 70 products designed for various hardware platforms.

Bullfrog's success as one of the most innovative development houses is based on strength of visually compelling and technically sophisticated interactive software titles such as the Populous series. When first released in 1989 Populous received critical acclaim and commercial success, and the company's creation of a whole new genre (the so-called "god game") remains a milestone in computer gaming.

Bullfrog's market success was repeated with the release of three subsequent hits, Powermonger, Populous II, and Syndicate. The company is garnering accolades for its most recent CD-ROM releases, Theme Park and Magic Carpet.

"Bullfrog is the best independent development organization in Europe, with the kind of top creative talent and seasoned management team that are essential for our continued expansion in the global entertainment market," stated Larry Probst, chairman and chief executive officer of Electronic Arts.

"Acquiring an outstanding interactive game developer like Bullfrog further enhances our strategy to grow our market share in CD-ROM titles for PCs and 32-bit game machines."

"Electronic Arts has been our strategic partner for over seven years -- a highly successful relationship that has teamed our innovative original titles with EA's strong worldwide distribution," stated Les Edgar, Bullfrog's joint managing director. "We share a common view of the future of interactive entertainment, and we believe our combined expertise will position us well to define and lead the industry in the years ahead."

Electronic Arts (EA), headquartered in San Mateo, is a leading interactive entertainment company. EA was founded in 1982 and has an annual sales rate of over $400 million. The company develops, publishes and distributes software worldwide for IBM-compatible PCs and Macintosh computers, as well as game machines such as Sega Genesis, Super NES, and 3DO Interactive Multiplayer.

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Note to Editors: Electronic Arts is a registered trademark of Electronic Arts. Bullfrog, Magic Carpet, Populous, Powermonger, Syndicate and Theme Park are trademarks of Bullfrog Productions Ltd. All other trademarks are the property of their respective owners.

CONTACT: Electronic Arts, San Mateo

             Pat Becker, 415/513-7523 (Dir. Corporate Communications)
             Caroline Hughes, 415/513-7860 (Dir. Investor Relations)