DESTINEER TO OPEN GAME DEVELOPMENT STUDIO IN RALEIGH, NC.

Raleigh Becomming a Hub for Videogame Development.

MINNEAPOLIS, MN, August 9, 2006 – Videogame developer and publisher Destineer announces today that it has chosen Raleigh, North Carolina as the location where it will open its next development studio. Destineer expects this location will grow to at least 100 engineers, artists, designers, QA staff, and management. Destineer’s Raleigh studio will initially develop commercial videogames and training simulations based on Destineer’s work with the US intelligence community.

The Raleigh area is already host to nearly a dozen videogame developers, including industry leaders Red Storm Entertainment and Epic Games.

“We believe Raleigh is quickly becoming a hub for videogame development,” according to Destineer’s president Peter Tamte. “We picked Raleigh as the location for this studio because it has a strong existing videogame development community, 3 of the nation’s top universities, and because, frankly, you can buy a gorgeous 4-bedroom house 15 minutes away from the office for about the same price as renting a 2-bedroom apartment on either coast. We think this will be helpful as we recruit experienced staff from other parts of the country.”

Destineer’s creative director, Juan Benito, who co-founded Red Storm Entertainment, will lead a core group of industry veterans who will begin operations at the studio on August 28. Destineer is looking to immediately fill positions in engineering, art, and design.

About Destineer

Destineer develops and publishes commercial videogames for personal computers and videogame consoles, and it creates PC-based virtual training systems for military, intelligence and first-responder organizations. Destineer’s commercial games include top-sellers such as First to Fight, John Deere: American Farmer, Red Orchestra, and Wings Over Europe. Destineer publishes its games under the Destineer, MacSoft, Bold Games, and Atomic Games brands. Destineer is a privately held corporation headquartered in Minneapolis, MN, with development studios in Minneapolis, Raleigh, NC, and Austin, TX. Destineer was created in 2001 by former Bungie Software Corp. executive vice-president Peter Tamte and is managed today by Mr. Tamte and CEO Paul Rinde, formerly a senior vice-president of Atari. More information is available at Destineer’s website: www.destineerstudios.com.