SUNNYVALE, Calif - Feb. 27, 2007 - Capcom Entertainment Inc., a leading developer and publisher of video games, announced today that it has entered into an agreement to license the Unreal Engine 3 (UE3) from Epic Games, Inc., for an unannounced project being developed in North America.

"The Unreal Engine is one of the most powerful and versatile tools available for next-generation game development," said Mark Beaumont, executive vice president, officer and head of Capcom consumer software publishing in the Americas and Europe. "More than just a graphics engine, UE3 will empower the development team to create the quality experience that gamers expect from a Capcom product."

"Capcom is known for the quality and artistry of their games," said Mark Rein, vice president, Epic Games. "We're glad that Unreal Engine 3 can be a part of their creative process."

About Unreal Engine 3
The award-winning Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset. Unreal Engine 3 is expected to maintain those features while adding massive world support, multi-processor support, next-generation console optimizations, and one of the most mature tool pipelines in the industry. Unreal Engine 3's new toolset is designed specifically to accelerate developers' productivity for ultra-complex, next-generation content. Additional information on Unreal Engine can be obtained at Unreal Technology.

About Epic Games
Epic Games, Inc., based in Cary, NC and established in 1991, develops cutting-edge games and game engine technology for PC and console. The company has created multiple million-selling, award-winning titles in their Unreal series and their latest game, Gears of War , broke sales records on Xbox 360 selling more than 3 million copies worldwide in the first ten weeks and awarded overall Game of the Year for 2006 by multiple media outlets including Gamespot and Gamepro. Epic is also responsible for the Unreal Engine, which is the underlying technology for a wide range of games including, Console Game of the Year winner, "Tom Clancy's Splinter Cell (tm)" by Ubi Soft; PC Gamer's Game of the Year, "Deus Ex" from Ion Storm/Eidos; "America's Army: Special Forces," by the United States Army, and "Harry Potter and the Sorcerer's Stone" (PC) by Electronic Arts. Epic's Unreal Engine 3 is the current holder, and three-time consecutive winner, of Game Developer magazine's Front Line award for Best Game Engine. Epic Games was also awarded Studio of the Year at the 2006 Spike TV Video Game Awards and Developer of the Year by Official Xbox Magazine. Additional information about Epic can be obtained through Epic's Web site at Epic.

ABOUT CAPCOM
Capcom is a leading worldwide developer, publisher and distributor of interactive entertainment for game consoles, PCs, handheld and wireless devices. Founded in 1983, the company has created hundreds of games, including best-selling franchises Resident Evil, Street Fighter, Mega Man and Devil May Cry. Capcom maintains operations in the U.S., U.K., Germany, Tokyo and Hong Kong, with corporate headquarters located in Osaka, Japan. More information about Capcom can be found on the company web site, Capcom.

Capcom, Resident Evil, Mega Man and Devil May Cry are either registered trademarks or trademarks of Capcom Co., Ltd., in the U.S. or other countries. Street Fighter is a registered trademark of Capcom U.S.A., Inc. Unreal and Gears of War are registered trademarks of Epic Games, Inc. in the U.S. and/or other countries. All other trademarks are the property of their respective owners.