OAK BROOK, Ill. and SAN FRANCISCO, December 2, 2004 -- As families take
to the roadways this holiday season, whether braving the malls or traveling to grandma's, McDonald's(R) Happy Meals will offer hours of playtime adventures with SEGA(R) as well as a chance to win the ultimate family gaming system, available at participating McDonald's, while supplies last. Between December 3, 2004 and December 27, 2004, McDonald's Happy Meals will feature one of eight interactive handheld videogames based on SEGA's top-selling franchise Sonic The Hedgehog(TM), and lucky families will have a chance to win one of 25 ultimate gaming systems plus 2,475 exciting videogames just in time for the holidays.

"We are very excited to team up with our partners at SEGA again to bring Sonic and his friends back to McDonald's with eight all-new Happy Meal(R) handheld game adventures," said Kent Voetberg, Director, McDonald's Kids Marketing. "To celebrate the season and the Silver Anniversary of the Happy Meal(R), McDonald's is thrilled to offer families the chance to win the ultimate gaming system in addition to the exciting new SEGA handheld games included in every Happy Meal."

"Search for the Silver Game," a new promotional game with videogame-related prizes, celebrates kids' passion for gaming as well as the conclusion of the 25 Years of Happiness Celebration. The "Search for the Silver Game" event will cap off the Happy Meal anniversary celebration giving McDonald's customers a chance to find one of 25 special Silver SEGA Happy Meal premiums that can be redeemed for an ultimate gaming system and 2,475 Silver SEGA premiums to be redeemed for Sonic videogames. As always, there is no purchase necessary to play the game. For complete details, check out the Official Rules at a participating McDonald's restaurant or online at http://www.mcdonalds.com.

"Joining forces with McDonald's is a great testament to the marketing power and appeal of Sonic The Hedgehog; one of the most recognizable characters in gaming," said Scott A. Steinberg, vice president of Entertainment Marketing, SEGA of America. "The Happy Meal campaign is a perfectly timed complement to the marketing effort behind Sonic Heroes and other Sonic games and merchandise retailing this holiday season."

This SEGA Happy Meal event will be supported by TV, radio, and online advertisements. Special activity pages focused on the event will also be included on SEGA's Sonic Central Web site ( http://www.sega.com/sonic ) as well as http://www.mcdonalds.com.

NO PURCHASE NECESSARY. Game begins 12/03/04 and ends 12/31/04 or while distribution supplies last. If you look in the Happy Meal(R) toy bag and find an Official Silver Toy and a winning game ticket with true and correct matching verification numbers, then you are a potential winner of a prize in the "Search for the Silver Game." If you play without buying something at McDonald's(R), just check your game ticket to see if you're a potential winner. See Official Rules at Participating McDonald's restaurants or mcdonalds.com for information on who can play, how to play without buying something at McDonald's, prize descriptions, and complete Game details. Many will play, only 2,500 will win.

McDONALD'S(R) SEGA(R) HAPPY MEAL(R) FACT SHEET

Eight New Handheld Videogames Based on SEGA's Classic Character Sonic The Hedgehog(TM) Make Stopping at McDonald's During the Holidays an Interactive Adventure

OAK BROOK, Ill. and SAN FRANCISCO, -- (December 2, 2004) -- As families take to the roadways this holiday season, whether braving the malls or traveling to grandma's, McDonald's Happy Meals will offer hours of playtime adventures with SEGA(R). Between December 3, 2004 and December 27, 2004, McDonald's Happy Meals will feature one of eight interactive handheld videogames based on SEGA's top-selling franchise Sonic The Hedgehog(TM) and pals. Games include:

Knuckles Treasures Hunt: Players must maneuver Knuckles through the building, timing jumps and collecting gemstones along the way.

Sonic The Hedgehog Extreme Boarding: Players are challenged to move Sonic from side to side through a half-pipe collecting rings, while dodging thorny balls.

Amy & Rouge Volleyball: Players are challenged to move Amy from side to side to return Rouge's serves and volleys.

Big Fishing: Players are challenged to help Big The Cat catch as many fish as possible by raising and lowering the lure and reeling in the catch.

Shadow Hockey: Players can maneuver Shadow past Omega robots to block shots on goal. However, the more you play, the more robots appear.

Billy's Giant Egg: Players are challenged to collect fruit to feed the egg. Once the egg hatches, players move on to the next level.

Tail's Sky Adventure: Players move from side to side to blast spaceships from Dr. Eggman's mother ship.

Cream Flower Catch: Players are challenged to catch as many flowers as possible.

About McDonald's

McDonald's is the world's leading foodservice retailer, with more than 30,000 restaurants serving 46 million people each day in 121 countries. Approximately 80 percent of McDonald's U.S. restaurants are owned and operated by independent local businessmen and women.

About SEGA

SEGA(R) of America, Inc. is the American arm of Tokyo, Japan-based SEGA Corporation, a worldwide leader in interactive entertainment both inside and outside the home. The company develops, publishes and distributes interactive entertainment software products for a variety of hardware platforms including PC, wireless devices, and those manufactured by Nintendo, Microsoft and Sony Computer Entertainment Inc. SEGA of America's Web site is located at http://www.sega.com/usa.