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Xbox Expands Definition of Digital Entertainment Lifestyle With New And Ambitious Titles Featured at E3

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First Xbox Games From Rare, New Genre-Defining Titles, Sequels to Blockbuster
 Franchises and Cutting-Edge Sports Brand - XSN Sports - Illuminate Lustrous
                                 Xbox Future

    LOS ANGELES, May 12 /PRNewswire-FirstCall/ --
Microsoft Corp. (Nasdaq: MSFT) debuted its lineup of ambitious new games for
the Xbox(R) video game system at a pre-Electronic Entertainment Expo (E3)
media briefing today, wowing a packed house at the Grand Olympic Auditorium
with titles that redefine innovation and plug an ever-expanding audience of
gamers into the Digital Entertainment Lifestyle.
    (Logo:  http://www.newscom.com/cgi-bin/prnh/20000822/MSFTLOGO )
    Sensationally rendered thrillers such as "Halo(TM) 2," one of the most
ambitious video games ever; the first three Xbox games from Rare Ltd.,
"Conker: Live and Uncut," "Kameo(TM): Elements of Power" and "Grabbed by the
Ghoulies"; and the highly anticipated sequel "Project Gotham Racing(R) 2"
showcased the depth, breadth and quality of the Xbox title portfolio.
    In addition to its showstopping game titles, Microsoft announced new
portfolio additions that seek to redefine what it means to play and compete in
the video-game universe. XSN Sports, the new brand moniker for
Microsoft-published sports titles, allows players to connect to real people in
real leagues with real rivalries using XSNsports.com, a Web-based service that
complements the Xbox Live(TM) experience. By linking gamers to a variety of
wireless devices and PCs, XSN Sports moves the Xbox experience beyond the box.
    "Great games are at the heart of our Digital Entertainment Lifestyle
vision," said Ed Fries, vice president for game content at Microsoft. "And at
Xbox, we're committed to the most ambitious expansion ever of what video games
can be."
    More than 50 Xbox Live games are scheduled to be available this holiday,
with more amazing Xbox Live-enabled games scheduled to be available in 2004,
including the highly anticipated "Halo 2." In addition, more games will
feature downloadable content, allowing gamers to continue to extend their game
experiences for months after a game's release.
    Upcoming blockbuster Microsoft Game Studios games for Xbox include
"Project Gotham Racing 2," the first Xbox title from Rare, "Grabbed by the
Ghoulies," "Counter-Strike," "Crimson Skies(TM): High Road to Revenge(TM)" and
"Fable."

    -- "Halo 2" (Microsoft Game Studios, Bungie) is the sequel to the award-
       winning, sci-fi action, first-person shooter game, "Halo: Combat
       Evolved." In "Halo 2," the saga continues as Master Chief, a
       genetically enhanced supersoldier, is the only thing standing between
       the relentless Covenant and the destruction of all humankind. Featuring
       Xbox Live capabilities, "Halo 2" will be released in the first quarter
       of 2004.
    -- "Conker: Live and Uncut" (Microsoft Game Studios, Rare) finds Conker
       back in an all-new Xbox Live-enabled team-based shooter. Conker, the
       cartoon rodent with a penchant for booze, wild women and lewd conduct,
       enters seven scenario-based modes, each with its own story. "Conker:
       Live and Uncut" will be available in 2004.
    -- "Grabbed by the Ghoulies" (Microsoft Game Studios, Rare) is a humorous,
       beat-'em-up adventure game that takes place in a haunted house full of
       crazed ghoulies. Gamers take the role of Cooper, a young boy on a
       mission to rescue his girlfriend, who has been "grabbed by the
       ghoulies." Players will venture through haunted and ominous Ghoulhaven
       Hall, battling a variety of monsters while trying to escape the many
       tricks, traps and shocks awaiting them along the way. "Grabbed by the
       Ghoulies" will be available for holiday 2003.
    -- "Kameo: Elements of Power" (Microsoft Game Studios, Rare) is an action-
       adventure game set in a fantastic kingdom of monsters and magic.
       Players become Kameo, a princess on a mission to rescue her three
       Elemental Ancestors from the Dark Troll King, who has plans to dominate
       the fantasy planet's wildlife. "Kameo" will be available in 2004.
    -- "Project Gotham Racing 2" (Microsoft Game Studios, Bizarre Creations
       Ltd.) is the ultimate test of racing skill, style and daring, rewarding
       drivers not only for how fast they drive but for how they drive fast.
       Drivers will earn Kudos and gain recognition for cornering on two
       wheels around the Sears Tower in Chicago, power sliding through the
       ancient streets of Florence, Italy, or maneuvering along the racing
       line through the slick streets of Edinburgh, Scotland, all while racing
       some of the most exotic high-performance vehicles available. Players
       also can challenge friends and other gamers online utilizing the Xbox
       Live online game service or through multiplayer System Link. "Project
       Gotham Racing 2" will be available for holiday 2003.
    -- "Fable" (Microsoft Game Studios, Lionhead Studios), from renowned
       developer Peter Molyneux, puts the choice squarely at gamers'
       fingertips: Will they be good, evil or somewhere in between? In
       "Fable," players choose their identity, determine appearance and
       abilities, feel effects of reputation, and thus create their own
       interactive experience. "Fable" will be available for holiday 2003.
    -- "Counter-Strike" (Microsoft Game Studios, Valve/Ritual) makes its
       console debut exclusively on Xbox and Xbox Live. The world's most
       popular game and first-person shooter for the PC features single-player
       missions taking place all over the world. Gamers can challenge other
       players in team-based multiplayer games on Xbox Live using System Link.
       "Counter-Strike" on Xbox will be the most graphically advanced version
       of the series to date. "Counter-Strike" will be available for holiday
       2003.
    -- XSN Sports (Microsoft Game Studios, XSN Sports) is the first lineup of
       Xbox games in which sport fans compete beyond the game. For the first
       time, gamers will challenge real people to create their own leagues and
       build their own rivalries. XSNsports.com will offer a Web-based service
       that intricately links XSN Sports gamers to the new digital
       entertainment lifestyle of wireless devices and PCs so the Xbox
       experience moves beyond the box.
    -- "Crimson Skies: High Road to Revenge" (Microsoft Game Studios) combines
       thrilling aerial combat with the swashbuckling style of a Hollywood
       action-adventure movie. Set in an alternate 1930s world of gunship
       diplomacy and sinister intrigue, "Crimson Skies" lets gamers pilot
       powerful aircraft against nefarious air pirates and behemoth war
       zeppelins. "Crimson Skies" will be available for holiday 2003.

    Great games from Xbox publishing partners will include "Tom Clancy's Ghost
Recon: Island Thunder" from Ubi Soft(R) Entertainment, "Ninja Gaiden(TM)" from
Tecmo(R) Inc., "Deus Ex: Invisible War" from Eidos Interactive Ltd., "Full
Spectrum Warrior(TM)" from THQ Inc., "StarCraft: Ghost(TM)" from Blizzard
Entertainment(TM), and "True Crime(TM): Streets of L.A.(TM)" from Activision.

    About Xbox
    Xbox ( http://www.xbox.com/ ) is Microsoft's future-generation video game
system that delivers the most powerful games experiences ever. Xbox empowers
game artists by giving them the technology to fulfill their creative visions
as never before, creating games that blur the lines between fantasy and
reality. Xbox is now available in the continents of North America, Europe,
Asia and Australia.

    About Xbox Live
    Xbox Live, which launched in the United States Nov. 15, 2002, allows
gamers to play multiplayer Xbox games with other gamers everywhere via a
broadband connection. With a built-in hard drive and Ethernet port, the Xbox
console is the only video game system built from the ground up for online
gaming. Xbox Live enables gamers to easily find their friends; talk to other
players during gameplay through the Xbox Communicator headset; download
current statistics and new levels and characters to their Xbox hard drive; and
play online -- all exclusive features to Xbox Live.

    About Microsoft
    Founded in 1975, Microsoft is the worldwide leader in software, services
and Internet technologies for personal and business computing. The company
offers a wide range of products and services designed to empower people
through great software -- any time, any place and on any device.

    NOTE:  Microsoft, Xbox, Halo, Kameo, Project Gotham Racing, Xbox Live,
Crimson Skies and High Road to Revenge are either registered trademarks or
trademarks of Microsoft Corp. in the United States and/or other countries. The
names of actual companies and products mentioned herein may be the trademarks
of their respective owners.


SOURCE Microsoft Corp.




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