Warner Bros. to Invest in Video Games Publisher

BURBANK, December 15: Warner Bros. Entertainment Inc. is
acquiring a 10.3-percent stake in the U.K.’s SCi Entertainment Group, the
parent company of the video game publishing label Eidos Interactive.

Further, Warner Bros. Home Entertainment Group and SCi have
entered into an agreement for the licensing and distribution of games based on
select Warner Bros. Entertainment properties. Eidos will develop video games
based on the comic book version of Batman,
as well as properties for hand-held platforms based on Looney Tunes characters, including Bugs Bunny, Daffy
Duck, Road Runner and Speedy
Gonzales. Eidos will develop up to twelve
games based on a number of individual characters in the Hanna-Barbera catalogue including Tom and Jerry, The Flintstones,
Wacky Races, Yogi Bear and Huckleberry Hound. Eidos also secured the
interactive rights to The OC, and
has signed license agreements relating to the children’s animated TV programs, Loonatics
Unleashed and Legion of Super
Heroes.

In addition, Eidos and Warner Bros. Home Entertainment Group
have entered into a primary distribution agreement under which Warner Bros.
Home Entertainment Group will provide warehousing, logistics, merchandising and
media buying services in the U.S. to Eidos. Eidos will continue to run all
other aspects of its U.S. operations including manufacturing, sales, marketing
and PR.

The investment, licensing and distribution agreements are
all pending SCi shareholder approval.

"Investing in SCi further solidifies our commitment to
the rapidly growing interactive and gaming space," said Kevin Tsujihara,
the president of Warner Bros. Home Entertainment Group. "This deal is
consistent with our core strategy of delivering high quality entertainment
based on some of the world’s best-loved brands for all formats and channels. We
look forward to working with SCi to build games the fans of these brands will
truly enjoy.”