SEGA Integrates SEGA of America and SEGA Europe Management Teams to Drive Growth in Western Markets

SAN FRANCISCO & LONDON--(BUSINESS WIRE)--Jan. 20, 2005--

SEGA Continues to Execute Plan to Become a Profitable, Leading Independent Game Publisher

SEGA of America, Inc. (SEGA of America) and SEGA Europe Ltd. (SEGA Europe), wholly-owned subsidiaries of SEGA Corporation (SEGA), a corporation in Tokyo, Japan, today announced that they have integrated their management teams to collectively drive growth in Western markets. Effective today, SEGA has appointed Naoya Tsurumi to CEO of SEGA of America; Simon Jeffery to President/COO of SEGA of America; Mike Hayes to COO of SEGA Europe; and Sue Hughes to Vice President, Sales of SEGA of America. Mr. Tsurumi will also serve as Corporate Officer of SEGA Corporation and CEO of SEGA Europe, as appointed on December 1, 2004.

As CEO of SEGA of America and SEGA Europe, Mr. Tsurumi will manage SEGA's software gaming businesses in North America and Europe, leading the independent subsidiaries toward improved efficiencies. These changes reinforce SEGA's strategy to gain market share within Western markets by jointly developing and acquiring content in North America and Europe. Under this new structure, SEGA management will collaborate more aggressively on product development and acquisitions across these growing territories for the next generation of platforms.

"Integrating the management of our US and European organizations will allow SEGA's Western regions to aggressively develop and pursue products that appeal to Western consumers," said Naoya Tsurumi, CEO, SEGA of America and SEGA Europe. "As we prepare SEGA for next generation hardware, this unified organization will better position SEGA for growth in these markets."

Since 1992, Mr. Tsurumi has served in various roles and managed many critical functions at SEGA Europe, including overseeing operations, marketing, development and licensing for SEGA's consumer game products in Europe. As COO of SEGA Europe, a post he assumed in 2002, Mr. Tsurumi succeeded in re-establishing the SEGA Europe organization after SEGA's exit from the hardware business.

In the role of president and COO for SEGA of America, Simon Jeffery will direct SEGA's software gaming businesses in North America, including overseeing all product and business development, marketing, sales, operations and content. Previously, Jeffery served as president of LucasArts Entertainment Company, vice president of marketing for Virgin Interactive Entertainment and in various management roles at Electronic Arts. Mr. Jeffery replaces Hideaki Irie who has been president and COO since October 1, 2003, and who has been instrumental in reshaping the strategic direction of SEGA of America.

Mike Hayes, formerly Managing Director for Europe, will replace Mr. Tsurumi as President and COO of SEGA Europe, effective immediately. SEGA Europe's second year of operation saw a significant growth in business with the huge success of Sonic Heroes and Football Manager 2005. Hayes built on the achievements in 2004 and will be striving for further growth and expanding market share throughout 2005.

Sue Hughes rejoins SEGA as vice president of sales for North America. Previously, Ms. Hughes held executive sales positions at Cokem International, Mobile Digital Media, Strategic Marketing Partners, The Learning Company, Mattel Media, Sanctuary Woods, SEGA of America and NEC Technologies.