Raleigh, NC, May 21, 2002 - Epic Games announces its industry-leading 'Unreal Engine', has been licensed by the U.S. Army to power the revolutionary "America's Army" PC game. The game and game details will be revealed to the computer and video games industry at the upcoming Electronic Entertainment Expo from May 22-25 in Los Angeles (Booth 2350 in the West Hall/Meeting room 153C in the Concourse Hall).

"It's an honor to be working with the U.S. Army and to have our engine selected as the technology solution for the game's development. Our mission is to constantly improve the gaming experience, and with our latest engine, both traditional and non-traditional players in the industry can join us on this crusade." said Mark Rein, vice president of Epic Games. "The development team on this has been top notch, and we can't wait to see everyone's reaction at E3."

"Our selection of the next generation Unreal Engine was the most important decision we made when charting our development path for 'America's Army'. The Unreal engine has allowed us push our graphics and realism beyond the state-of-the-art," said LTC Casey Wardynski, originator of the "America's Army" concept and manager of the development program.

Dr. Michael Capps, development team lead, said, "Our team was certainly excited about working with the Unreal technology - but the support and feedback Epic's team has given us, from the early design stages to last-minute optimization, has been truly invaluable."

Epic's award-winning Unreal Engine has already been licensed by many of the recognized leaders in PC gaming such as Electronic Arts (Undying, Adventure Pinball), Infogrames (Epic's own Unreal Tournament), and Eidos (Deus Ex, Deus Ex 2, Thief 3). The Unreal Engine is viewed as the game industry's most advanced and widely used engine.

About the Unreal Engine:

The Unreal Engine, originally created for Epic's revolutionary 3D first-person Unreal computer game and continually updated to be state-of-the-art, provides programmers with a complete solution for software development -- from design and Artificial Intelligence (AI) to texture mapping and networking. Many programmers and artists both inside and outside of the gaming industry are drawn to the Unreal engine's advanced toolset, scripting possibilities and flexibility, which makes it extremely beneficial and easy to use for numerous applications, including architectural and historical recreations. The engine is constantly being improved to provide developers with tools for creating more detailed and expansive environments. For more information about the latest Unreal Engine features please visit http://www.epicgames.com/unrealenginenews.html

About Epic Games:

Epic Games Inc, based in Raleigh, NC and established in 1991, is a developer of cutting-edge computer and video games. The company is best known as the creator of hit PC 3D action games Unreal and Unreal Tournament both award-winning blockbuster hits having each sold more than 1 million copies. Unreal Tournament has been recognized as the Game of the Year by many leading gaming media outlets including Computer Gaming World, the #1 PC games magazine, and has appeared on PC, Macintosh, Linux, Sony PlayStation 2 and Sega Dreamcast. Epic's Unreal engine has been licensed to several top game developers for games in a variety of genres on multiple platforms including the PC, Apple Macintosh, Linux, Microsoft XboxTM and Sony PlayStation 2. Eidos' Deus Ex, which was PC Gamer magazine's 2000 Game of the Year, and Electronic Arts' critically acclaimed Undying are among the many shipping titles built using the Unreal engine. Prior to their 3D success, Epic Games was well known for the hit shareware games Jill of the Jungle, Jazz Jackrabbit and Epic Pinball. Most recently, Epic Games was listed on the 2002 Red Herring 100 as one of the top 50 private companies in the country recognized for innovation and business strategy. Additional information can be obtained through Epic's Web site at www.epicgames.com.

Electronic Entertainment Expo, May 22, 2002 -- The U.S. Army today unveiled "America's Army," an innovative, realistic computer game providing civilians with an inside perspective and a virtual role in today's premier land force, the U.S. Army. "America's Army" players will experience soldiering in a state-of-the-art new manner.

The "America's Army" game blends two vivid simulations: "Soldiers," a role-playing portion in which players navigate life's challenges to achieve goals, and a first-person action game, called "Operations."

Developed by the U.S. Army and a world-class team of Department of Defense experts in simulations and virtual environments, "America's Army" will be available in August. The Army will distribute "America's Army" for free in response to requests at www.americasarmy.com and www.goarmy.com, through distribution partners that include leading computer game magazines, at Army events and recruiting stations and through Internet download. The game is rated "T" for Teen by the Entertainment Software Ratings Board.

Anticipating large-scale distribution this summer, the Army unveiled the game at the Electronic Entertainment Expo (E3), the computer and video games industry's major convention in Los Angeles.

In the "Soldiers" role-playing portion, players undergo Army training and adventures while encountering tactical, technical and physical challenges - similar to issues soldiers might face in their first tour of duty while on and off duty.

Importantly, players manage their character's goals, values and resources. Each player chooses specific soldier attributes, career, and personal goals to achieve. As each goal is met, another is set. Values are integral to how the player guides a character while they coordinate six resources to determine how fast their character reaches a goal.

Each time a soldier-character encounters a new challenge or life choice, the game uses a revolutionary real-time story engine to generate new screenplays, dialogue, scenes, sounds and actions to carry the character through a personalized story. This link between player's actions and choices results in nearly infinite story possibilities. The game features text-to-voice technology allowing for personalized simulations while combining animation with photo realistic background images.

The action-packed "Operations" portion allows up to 32 players to enter into "virtual service" with the U.S. Army on the same unit mission. Players begin their virtual Army experience as a recruit with an anonymous user name to experience challenging Army missions from a first-person perspective. Developed using the latest version of Epic Games' "Unreal Engine " and optimized for NVIDIA GeForce2 graphics processors, "Operations" features 20 single and multiplayer missions. Training missions build player capabilites -- from navigating Fort Benning's obstacle course to parachute drops in preparation for assignment to the 82nd Airborne Division. Multiplayer missions are played free on a virtual playing field online with web servers hosted by HomeLAN.

Multiplayer missions are organized into assignment tours, such as being part of the 10th Mountain Division (Light Infantry) or the 75th Ranger Regiment. To join a multiplayer game, the players must complete the appropriate training. Gamers use realistic equipment and authentic military hardware. Teamwork, leadership and the benefits of training are emphasized. As in any team effort, communication is key: gamers use different speech, whispers, shouts, radio messages and -- in a game industry first -- genuine military hand and arm signals. Borrowing a page from Army force-on-force training methods, players always perceive they always are on the U.S. team.

The two games are interlaced, with experiences and attributes accumulated during gameplay in one game shaping adventures and opportunities in the other. Players can jump from one game to another to find out additional mission and career information and learn hints to help them advance.

"America's Army' is an amazing product and hats off to the U.S. Army for being bold enough to make this project happen," said Jay Wilbur, strategic advisor to Epic Games, a leading game development company. "This game will deliver the public an immersive, realistic, behind-the-scenes Army experience wrapped into a cutting-edge game that raises the bar for computer entertainment products."

The Assistant Secretary of the Army for Manpower and Reserve Affairs is the proponent for "America's Army." Game development was directed and managed by the U.S. Military Academy's Office of Economic & Manpower Analysis at West Point. The staff of the Modeling, Virtual Environment and Simulation Institute, masters and doctoral students at the military's post-graduate education facility in Monterey, Calif., developed the game's highly realistic simulations and situations. The development team worked with leading firms such as Epic Games, NVIDIA , THX Division of Lucasfilm Ltd., Dolby Laboratories, Lucasfilm Skywalker Sound, HomeLAN, and GameSpy Industries.

Through the efforts of the more than 1.2 million soldiers in the active Army, Army National Guard and Army Reserve the U.S. Army is the world's premier land force. Today, more than 210,000 soldiers stand guard in defense of freedom in over 120 foreign countries. Army soldiers are on the frontline in the ongoing war on terrorism and joint-service missions for the Department of Defense. The Army will be 227 years old on June 14 and is major part of a Transformation revolution for America's future national defense needs. For more information on the Army, go to www.goarmy.com or www.army.mil.

"Unreal " is registered trademark of Epic Games, Inc. "GameSpy Arcade ," "GameSpy 3D " and "Mplayer " are registered trademarks. "GameSpy Industries" and design are registered service marks of GameSpy Industries, Inc.