SEGA DREAMCAST PRE-SALE ORDERS HIT 300,000 TRIPLING INDUSTRY RECORD

Sega Dreamcast Expected to Break Entertainment Sales Record at Launch on 9-9-99

SAN FRANCISCO (August 30, 1999) - Records are meant to be broken! SegaÒ of America, Inc. today announced that Sega DreamcastÔ, the superconsole with a built-in 56K modem that will bring the most-advanced and realistic video gameplay ever developed to consumers at its retail launch on September 9, 1999, has set a record with 300,000 pre-orders, shattering the previous record of 100,000 held by Sony PlayStation(tm). The much-anticipated launch of Sega Dreamcast will have cash registers in overdrive, expecting to set a new record for the largest 24-hour retail sales period in the history of the entertainment industry. Sales of Sega Dreamcast will bring in nearly $45 million during the first 24-hours at retail, far surpassing the current record holder Star Wars: The Phantom Menace at $28 million1.

Launching at a suggested retail price of $199, the new 128-bit, Internet-ready Sega Dreamcast has peaked the interest of consumers since the system was first shown to the public last year. Since then, the Sega Dreamcast pre-sell campaign has retailers taking an average of 14,000 orders for the system each week, with demand increasing by more than 50 percent since August 2, 1999. Sega Dreamcast hardware and software began shipping to retail outlets today for sale on 9-9-99.

"Consumer demand for Sega Dreamcast continues to accelerate at an astounding pace," said Chris Gilbert, senior vice president of sales, Sega of America. "The unprecedented 300,000 pre-sell order solidly positions Sega Dreamcast to break every sales record in entertainment history on 9-9-99."

Retailers participating in the Sega Dreamcast pre-sell campaign include Ames, Babbages, Best Buy, CompUSA, Electronics Boutique, FuncoLand, KB Toys and Toys 'R Us. Orders for Sega Dreamcast can also be secured online at www.sega.com. The campaign has been underway since April of this year.

Retailers will continue to take pre-sell orders for Sega Dreamcast up to the launch, when the system will be available at more than 15,000 storefronts nationwide. Once at retail, Sega expects to sell more than 400,000 systems in the first 30 days, one million by December 31 and 1.5 million by March 31, 2000.

Sega is currently supporting the launch of Sega Dreamcast with an extensive $100 million marketing campaign, which includes a breakthrough broadcast ad campaign created by Pacific Data Images, the creators of the award-winning animated feature film, Antz. Utilizing models and assets straight from the Sega Dreamcast hardware and software, the spots feature Sega's beloved mascot Sonic the HedgehogÔ, more than forty 1st and 3rd party game characters, and live-action and animated appearances by a range of NFL and NBA stars including Gary Payton, Penny Hardaway, Brian Grant, Allen Iverson and Randy Moss.

About Dreamcast
Sega Dreamcast's 128-bit architecture makes it the first console with evolutionary capabilities, allowing it to grow and change to match advances in technology and the needs and desires of the consumer. Sega Dreamcast is also the most powerful video game console ever created and the first to offer Internet connectivity including e-mail, browsing and chat using the Sega Dreamcast Network. It is 15 times more powerful than a Sony PlayStationÔ, ten times more powerful than a Nintendo 64 and has four times the graphics processing power of the fastest Pentium II processor. In addition, Sega Dreamcast is the first console to utilize hand-held gaming through its Visual Memory Unit (VMU), which allows players to swap games with friends in the home, arcade or head-to-head using two VMUs.

About Sega
Sega of America, Inc. is the arm of Tokyo, Japan-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega video game systems and video games in the Americas. Sega Enterprises, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home. Sega of America's World Wide Web site is located at www.sega.com.

1According to Exhibitor Relations Company, a Los Angeles-based firm that tracks box-office revenues.