SEGA.COM AND CAPCOM TEAM UP TO BRING ONLINE RACING

SAN FRANCISCO (December 17, 2002) - Sega.com, the world's pioneer in online console gaming and Capcom?, a leading force in the interactive entertainment industry, today announced that Auto Modellista for PlayStation?2 computer entertainment system will utilize SEGA Network Application Package (SNAP) technology for networked gameplay. Tapping into Sega.com's extensive experience in online gaming, SNAP provides Capcom with a reliable, easy-to-use online gaming solution to take their cutting edge game to the next level. SNAP technology is the ideal custom network transport to provide optimal gameplay for Auto Modellista and SNAP Services will assist Capcom with operation, maintenance, and development of a networked game environment, as well as server hosting, in-game web development, implementation consulting, and network quality assurance. "SNAP has been the technology backbone for many of the leading SEGA console games," said Ryoichi Shiratsuchi, CEO of Sega.com and general manager, Network Business Division, SEGA Corporation. "We are very excited to be working with Capcom on this project that combines an industry leading game, gaming console and network technology, to offer players a seamless online gaming experience."

Launching in spring 2003, Auto Modellista is the first true cell-shaded online racing game to allow players to race head-to-head online via SNAP. Auto Modellista is designed to capture the racing experience, allowing players to customize their racecars from more than 60 real-world cars. To create a real-world racing experience, Auto Modellista also offers players the option of competing against up to eight other drivers online, a variety of tracks and courses, four modes of play and a selection of background music. Auto Modellista is scheduled to release in March 2003 and will carry the suggested retail price of $49.95.

About Capcom, Co. Capcom Entertainment, headquartered in Sunnyvale, California, is a wholly owned subsidiary of Capcom, Co., Ltd. of Japan. A leading force in the multi-billion dollar interactive entertainment industry, Capcom's legacy spans more than 22 years of entertaining video gamers. Capcom develops, markets, and distributes home video games for the PlayStation(r) game console, PlayStation(r)2 computer entertainment system, Nintendo(r) GameCube, and Xbox(tm) video game systems, Game Boy(r) Advance and Game

Boy(r) Color Systems, personal computers, and coin-operated games. Worldwide recognizable product lines include the Resident Evil, Street Fighter, Mega Man, Breath of Fire, and Onimusha series. World headquarters in Osaka, Japan, the company also has offices in Tokyo, Hong Kong, London, and Sunnyvale, California. The company is publicly traded on the Tokyo Stock Exchange code number 9697.