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SEGA FORMS NEW COMPANY

Sega Enterprises has joined forces with large software maker CSK Corp. to launch a new company that will develop home entertainment software. Sega Soft will be a partnership of the two Japanese companies and will based in Redwood City, California. The company will start operating next month. It will develop games and other content that can be played or accessed over the Internet, as well as content for multimedia PCs and Sega video game systems such as Saturn. It will focus on interactive entertainment and edutainment, as well as educational, home business and reference software. Sega will distribute and market the products. Canadian advertising for Sega is created by MacLaren:McCann in Toronto and Goodby Silverstein & Partners in San Francisco. Sega of America president and CEO Tom Kalinske will take on the added title of vice-chairman and co-CEO of Sega Soft. Nobou Mii will be chairman and CEO while remaining a partner at ACCEL Partners, a venture capital firm that specializes in the area of technology.

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