Microsoft & Epic Announce “Gears of War” Surpasses 2 Million Units Sold Worldwide Stephen Fung December 15, 2006 Press Release TORONTO, ON — Dec. 15, 2006 — A video game champion has been crowned; “Gears of War” made history today by becoming the fastest-selling next-gen game of 2006 and the fastest-selling exclusive Xbox(r) game of all time. Microsoft Game Studios and Epic Games Inc. today confirmed that “Gears of War,” the Xbox 360(tm)-exclusive title, has sold more than 2 million copies worldwide since its release six weeks ago, with a stunning 1 million copies sold in North America alone. “‘Gears of War’ clearly has won the battle for the title of the must-have game of the year,” said Jeff Bell, corporate vice president of global marketing for the Interactive Entertainment Business at Microsoft Corp. “Its phenomenal success is one of many reasons why Xbox 360 is the ultimate place to get together with friends to play this holiday.” “We’ve always held high hopes for ‘Gears of War,’ but we never expected such an overwhelmingly positive response from critics and gamers all over the world,” said Michael Capps, president, Epic Games. “I can’t describe how stoked our team is right now. Our fans can absolutely count on Epic to keep delivering new gameplay through Xbox Live(r).” In addition to being the must-have video game of the holiday season, “Gears of War” continues to rage on the Xbox Live battlefield as well, with more than 1 million unique gamers engaging in 10 million online gameplay sessions and unlocking an impressive 7 million achievements. On top of being the No. 1 title on Xbox Live, “Gears of War” has driven new members to the network; paid registrations per day have skyrocketed more than 50 per cent since the game’s launch. About “Gears of War” More than 80 publications around the world have crowned “Gears of War” the best next-generation game of the year. At the recent Spike TV Video Game Awards that aired Wednesday evening, the next-gen-defining title garnered four awards, for Best Multiplayer Game, Best Shooter, Studio of the Year (for Epic Games) and Best Graphics. “Gears of War” thrusts gamers into humankind’s epic battle for survival against the Locust Horde, a nightmarish race of creatures who surface from the bowels of the planet. Blending the best of tactical action games with the best of survival horror titles, “Gears of War” features cinematic, beautifully rendered interactive environments with high-definition visuals. Critics everywhere overwhelmingly agree and have united to make “Gears of War” one of the best-reviewed games of all time. About Epic Games Epic Games, Inc., based in Cary, N.C. and established in 1991, develops cutting-edge games and game engine technology for PC and console. The company has created multimillion-selling, award-winning titles in its Unreal series, and its latest game, “Gears of War,” broke sales records on Xbox 360, selling more than 2 million copies worldwide in the first six weeks. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including Console Game of the Year winner “Tom Clancy’s Splinter Cell(tm)” by Ubisoft, PC Gamer’s Game of the Year “Deus Ex” from Ion Storm/Eidos, “America’s Army: Special Forces” by the U.S. Army, and “Harry Potter and the Sorcerer’s Stone” (PC) by Electronic Arts. Epic’s Unreal Engine 3 is a two-time consecutive winner of Game Developer magazine’s Front Line award for best game engine. Additional information can be obtained through Epic’s Web site at http://www.epicgames.com. About Microsoft Game Studios Microsoft Game Studios is a leading worldwide publisher and developer of games for the Xbox and Xbox 360 video game systems, the Windows(r) operating system and online platforms. Comprising a network of top developers, Microsoft Game Studios is committed to creating innovative and diverse games for Windows (http://www.microsoft.com/canada/games), including such franchises as “Age of Empires(r),” “Flight Simulator” and “Zoo Tycoon(r);” Xbox and Xbox 360 (http://www.xbox.ca), including such games as “Gears of War” and franchises such as “Halo(r),” “Fable(r),” “Project Gotham Racing(r)” and “Forza Motorsport(tm)”; and MSN(r) Games (http://www.games.msn.com), the official games channel for the MSN network and home to such hits as “Bejeweled” and “Hexic(r).” About Xbox 360 Xbox 360 is the most powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming network and unique digital entertainment experiences that revolve around gamers. Xbox 360 is expected to have a catalog of 160 high-definition games by the end of 2006 and to be available in nearly 37 countries by the end of this year. More information can be found online at http://www.xbox.com/en-CA/xbox360. About Xbox Live Xbox Live is the first and most comprehensive unified online entertainment network seamlessly integrated throughout the entire console experience, making it easy for people to find the friends, games and entertainment they want from the moment they power on their Xbox 360 system. Xbox Live connects millions of members across nearly 25 countries to enjoy hundreds of multiplayer games, downloadable games via Xbox Live Arcade, free and premium playable game demos, music videos, TV shows and movies as well as new game levels, characters and vehicles for all their favourite retail games. More information can be found online at http://www.xbox.com/en-CA/live. About Microsoft Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential. Share This With The World!