SONY GRANTS PLAYSTATION 2 DEVELOPMENT LICENSE TO MODERNGROOVE ENTERTAINMENT

VANCOUVER, CANADA - ModernGroove Entertainment International, Inc. today announced it has been granted a license from Sony Computer Entertainment of America to develop interactive entertainment titles for their upcoming PlayStation(R) 2 computer entertainment system.
When evaluating potential developers, Sony looks for a high level of innovation coupled with the ability to deliver a great product," said Adrian Crook, Executive Producer of ModernGroove. Our team is excited to be given the chance to prove as much on the most significant entertainment platform in the world."
ModernGroove received and set up its first shipment of PlayStation 2 development stations in May, much to the delight of its production team. Virtually all of ModernGrooves artists, programmers, and producers spent years honing their craft at Electronic Arts Canada, so the influx of new development stations into the studio is a familiar event.
The PlayStation 2 is the vehicle that will deliver truly interactive entertainment to the home," said Crook, producer and original concept generator on Electronic Arts Sled Storm for the Sony PlayStation (over 800,000 units sold to date). Its the unique abilities of the PlayStation 2 - broadband, DVD, USB - that attracted ModernGroove to the platform. For the first time, pioneering developers can build their dreams without compromise and thats exactly what ModernGroove intends to do."

---ABOUT MODERNGROOVE---
ModernGroove Entertainment International, Inc. (www.mgentertainment.com), headquarted in Los Angeles with studio operations in Vancouver, Canada, is an emerging leader in the production and delivery of interactive entertainment and streaming media for next generation, internet-enabled platforms such as the PlayStation(R) 2 computer entertainment system and the personal computer. Founded in August 1999, ModernGroove now boasts a staff of over 40 artists, engineers, producers, and business personnel.

---ABOUT SONY---
Sony Computer Entertainment America Inc. markets the PlayStation game console for distribution in North America, develops and publishes software for the PlayStation game console, and manages the U.S. third party licensing program. Based in Foster City, Calif., Sony Computer Entertainment America Inc. is a wholly-owned subsidiary of Sony Computer Entertainment Inc.

---CONTACTS---
darrin.rayner > 604.742.2000
darrin@mgentertainment.com

molly.smith > 415.655.6044
molly_smith@interactive.sony.com

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