Russian Publisher Buka Entertainment Signs Publisher-Wide License for AGEIA PhysX Technology; AGEIA PhysX Processor Supported in Several Upcoming Titles Targeting Eastern Europe.

MOUNTAIN VIEW, Calif. & MOSCOW -- AGEIA(TM) Technologies, Inc., the pioneer in hardware-accelerated physics for games, announced today at the Russian Developers Conference (KRI) that Russian publisher Buka Entertainment Enterprises has signed a publisher-wide license agreement to use AGEIA PhysX(TM) technology in a variety of its upcoming game titles. A leading games publisher in Moscow, Buka Entertainment has released more than 100 games in its market sphere, which focuses mainly on Eastern Europe but extends as far as China and the US.

The AGEIA PhysX SDK gives Buka developers a powerful cross-platform tool for creating massively destructible environments, lifelike characters and spectacular new weapons for their games, as well as sophisticated particle-based environmental effects such as smoke, fog and oozing liquids. These effects multiply in number and intensity on PCs equipped with PhysX Accelerator add-in boards powered by the AGEIA PhysX processor.

The AGEIA PhysX processor is available now in game PCs from Dell, Alienware and Falcon Northwest, and on add-in boards from ASUS and BFG Technologies starting in May 2006.

"AGEIA PhysX technology will enable our developers to integrate fantastic new levels of physics functionality, realism and interactivity into our games," said Ivan Moroz, Producer at Buka Entertainment. "Our publisher-wide agreement allows us to explore the possibilities of enhanced physics capabilities in a wide spectrum of different genres and game environments."

"Buka Entertainment is one of the largest players in the Russian Federation games market and maintains a huge distribution network in Eastern Europe and the rest of the world," said Kathy Schoback, vice president of content acquisition at AGEIA. "We consider Buka a key strategic partner for AGEIA as we introduce AGEIA PhysX technology to an ever-expanding worldwide marketplace."

About BUKA Entertainment

Buka Entertainment is a European publisher headquartered in Moscow, Russia. Since its foundation in 1994, Buka has released more than 100 games both home-grown and localized, including made in Russia Fair Strike, Battle Mages and The Entente: World War I Battlefields. In the front of the current product line we have Pacific Storm, Hard Truck: Apocalypse, and Pathologic. Russian games produced by Buka became the internationally anticipated and recognized brands. Buka's games came to 70 countries of the globe, such as the US, the UK, Japan, Germany, France, and Eastern Europe. We signed our titles with more than 56 Publishers scattered around the world. Among them, we have names like Encore, Capcom, Acclaim, MC2, Cenega, Data Becker, JoWooD, Ubi Soft, and a number of smaller, but reliable and good partners as well, leaders in their respective territories. The recent years were flagged with the steadfast expansion of Buka's direct sales operations spanning the Russian Federation and CIS countries through to Mainland China, where Buka established a subsidiary company in winter 2005. For more information, visit www.buka.com.

About AGEIA

AGEIA(TM) 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(TM) 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 www.ageia.com.

AGEIA and PhysX are trademarks of AGEIA Technologies, Inc. All other trademarks are the property of their respective owners.