Sierra Studios Launches With Steller 1998 Line-Up; New Bellevue, WA-Based Brand Division Of Sierra And Cendant Software Embodies New Era Of Entertainment Software Excellence.

BELLEVUE, Wash.--(BUSINESS WIRE)--April 20, 1998--Sierra On-Line, Inc., the market share leader of interactive entertainment software, announced today the creation of Sierra Studios, a brand division of parent company Cendant Software that brings together the development resources of some of the best-known names in the interactive entertainment software industry.

Sierra Studios reflects a commitment to established game brands, quality gameplay and represents a move to bring new and innovative experiences to gamers.

In addition to its Bellevue-based in-house development team at Sierra Northwest, the division includes three satellite development houses that operate under the new Sierra Studios banner: Impressions Software in Boston and London, and PyroTechnix in Cincinnati. Sierra Studios is also committed to fostering the talents of quality independent game developers, as evidenced by its current publishing relationships with Valve and Relic Entertainment.

"Sierra Studios' mission is to continually innovate in both the development and marketing of the games we publish. Our focused, yet diverse 1998 line-up personifies our commitment to producing nothing but top-quality titles that offer truly unique experiences to every gamer," said Scott Lynch, Senior VP. "In addition to our in-house talent, we will continue to partner with independent developers who share our vision and passion. We are fortunate to have the resources and talent to establish Sierra Studios and our developers as forerunners in the gaming industry."

Scott Lynch will be responsible for day-to-day operations of Sierra Studios. Jim Veevaert director of marketing, will be responsible for overseeing all aspects of the company's marketing strategies including brand identity, advertising, promotions and marketing. J. Mark Hood, Chris Beatrice and David Lester are general managers of Sierra Northwest, Impressions Boston and Impressions UK, respectively.

Sierra Studios' development teams are comprised of some of the best-known names in computer game development, including renowned designers Roberta Williams (King's Quest), Al Lowe (Leisure Suit Larry), Raymond E. Feist (Return to Krondor), David Lester (Lords of the Realm/Caesar) and Jane Jensen (Gabriel Knight). The company currently has six titles in development spanning multiple game genres, including Half-Life, King's Quest: Mask of Eternity, Gabriel Knight III: Blood of the Sacred, Blood of the Damned, Return to Krondor, Caesar III, and Homeworld.

"Sierra Studios is in the enviable position of launching its debut product line with some of the most anticipated gaming titles in the industry," said Jim Veevaert, director of marketing. "Our development teams have pushed technology and gameplay enhancements to the limit and are going to redefine traditional game genres to ensure that Sierra Studios' products are the clear choice for gamers."

SIERRA STUDIOS' 1998 LINE-UP:

Half-Life -- Summer 1998

Half-Life introduces a revolutionary leap in 3D first-person games by combining stunning technology enhancements with genre-breaking gameplay elements. Gamers are given opportunities to wreak havoc -- in true action-game fashion -- but they are also challenged to explore and strategize. Half-Life's strong story elements, advanced inventory system and story-integrated challenges create an experience never-before-seen in traditional "run-and-gun" action games. The result is an entirely immersive playing environment with intensely realistic life forms.

King's Quest: Mask of Eternity -- Fall 1998

Return once again to the Kingdom of Daventry, the majestic setting of the King's Quest series, where myths and legends are the stuff of daily life, and magic is both a tool...and a danger. King's Quest: Mask of Eternity features a completely 3D, immersive game environment that combines the reality of a live-action game -- with the open-ended sense of adventure and exploration that comes from within a 3D world -- and the captivating storytelling talents of Roberta Williams. King's Quest: Mask of Eternity debuts the next step in Sierra's ever-evolving line of premier adventure games.

Gabriel Knight III: Blood of the Sacred, Blood of the Damned -- Fall 1998

Gabriel Knight III: Blood of the Sacred, Blood of the Damned is the next installment in the famed Gabriel Knight adventure game series. Gabriel Knight III produces a real-time 3D environment which offers players an unprecedented level of exploration and control while maintaining strong narrative and adventure elements. Gabriel Knight III is set in an ultra-realistic 3D virtual world, in which players have unlimited exploratory control. Featuring an advanced character AI (artificial intelligence) system, characters living in the world act independently from the player.

Return to Krondor(tm) -- Fall 1998

Return to Krondor(tm), developed by PyroTechnix, is the highly anticipated sequel to the best-selling RPG of all time, Betrayal at Krondor. Set in Raymond E. Feist's world of Midkemia, Return to Krondor(tm) offers many of the key RPG elements found in the original while simultaneously incorporating the latest gaming technology. During the quest, players assume the roles of five main characters, Squire James, a reformed thief; the Keshian sorceress Jazhara; William Condoin, son of the magician Pug; a roughhewn Warrior-Priest of Ishap named Brother Solon; and Kendaric, the reluctant wizard whose magic is the group's only hope of victory. The story revolves around the disappearance of the Ishapian Church's most sacred relic, the Tear of the Gods. A band of ruthless pirates -- in the employ of Sidi, a shadowy, half-mad sorcerer -- attempt to seize the Tear from the Ishapian treasure ship; but in the process, they accidentally sink the ship, sending the Tear to the bottom of the Bitter Sea. Their quest leads them from the dizzying heights of Krondor's Palace, through the twisting tunnels of the sewers beneath the city, and into the haunted depths of a temple dedicated to an evil as ancient as the gods themselves. Return to Krondor(tm) is built on PyroTechnix's True3D(R) engine, delivering real-time lighting and a host of special effects never before seen in an RPG.

Caesar III -- Fall 1998

Drawing on the success of the award-winning Caesar II, which sold over 500,000 units, this strategic simulation offers players the opportunity to create, rule and defend a Roman-era city of their own design. Caesar III offers multiple gameplay objectives in a richer, truer environment. Players can build and maintain a thriving Roman city, develop armies, defend their territory against invading neighbors, or, if they choose, take over the empire by exploiting resources and charming the emperor for power and promotion. Rather than monitoring separate screens for city, countryside and battle, all of the game's action takes place on one level. This innovation makes the most dramatic difference in combat. Instead of sending troops off to an anonymous battlefield, there will be street-to-street fighting if the player's defensive measures fail. Another new feature in Caesar III is that the real-time effects of almost all the player's actions are immediately visible on-screen. The game also features a highly intuitive interface, a new musical score, and richly-detailed animations, structures and terrain elements.

Homeworld -- Fall 1998

Homeworld represents the next dimension in space combat. The debut release from Relic Entertainment, this sublime offering uniquely melds existing genres to create a completely new gaming experience. An evolutionary step in gameplay and 3D technology, Homeworld simultaneously delivers cinematic-quality graphics, stunning special effects, brilliantly-rendered ships and an innovative interface. In addition, players have unparalleled freedom to view epic space confrontations from any position imaginable -- whether from an eagle's-eye view miles above or piggybacked on the roof of a fighter in mid-battle. Combining elements of space combat, strategic play and action, Homeworld promises to deliver elements of our favorite games in a totally fresh experience.

Sierra Studios' web site is located at www.sierrastudios.com. -0-

Sierra Studios and Sierra On-Line(R), Inc. are part of Cendant Software, one of the largest PC consumer software groups in the world, and a leader in entertainment and educational software. Cendant Software consolidates the sales, manufacturing, finance, accounting and management of Cendant Corporation's software divisions, including Sierra On-Line(R), Inc., Knowledge Adventure(R), Davidson & Associates, Inc. and Blizzard Entertainment(R). Cendant Corporation (NYSE: CD) is the result of the Dec. 17, 1997 merger between CUC International and HFS Incorporated, creating the world's largest business and consumer services company (based on market capitalization), with a focus on real estate, travel, membership services and software.

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