Press Release

SEGA AMUSEMENTS USA, INC. TO CREATE DISNEY AMUSEMENT PLUSH AND TOYS!

Sega's creating new Disney styles to dazzle the eye!

Elk Grove Village, IL June 8, 2006 — A little pixie dust just got sprinkled on Sega Amusements USA, Inc.! The Japan-based industry leader is extremely pleased to announce new Disney plush and plastic toys for cranes, amusement centers, and redemption locations.

Sega Corporation has held the Disney license to manufacture plush and toys in Japan for over 10 years, and now the U.S. market can look forward to similar unique styles of beloved Disney characters for their amusement locations.

"We're ready to change the industry with our product line," states Dave Cane, Vice President of Merchandise Sales. "The quality and creative design of Sega Corporation's plush is unequalled, and that's the model we're using for the U.S."

Crane operators can look forward to fresh and new collectible series' each month, featuring creative styles and colors - and even a few surprises! Another nice perk for operators is Sega's Automatic Plush Shipment Plan, where cases are automatically sent each month, thus taking out the guesswork and pressure associated with having to order enough merchandise month to month.

Disney Consumer Products commented on having Sega Amusements USA, Inc. on board. "SEGA is a leader in developing high quality prizes for the skill crane market and we are proud to have them producing and distributing plush and plastic prizes featuring our Disney characters in this growing business," said Catherine Bachmaier, North American Director of Toys. "We look forward to growing this business together."

The top-notch quality and clever designs are probably the most compelling features of the new plush. "Snuggle Plush"attaches two best friends (like Bambi and Thumper) together in one piece. The "Flavor of the Month" series boasts Mickey and friends in never before seen colors. "Round Bottom" characters have a fun "wobble" characteristic because they have no feet. The list goes on and on.

Each month, Sega will release three different sizes, conducive to every type of crane: keychain plush, 6" - 9" medium plush, and 13" - 15" jumbo plush. "Creating a whole series of plush throughout the year is the key to collectibility," says Sales and Marketing Manager, Laurie Jezuit. "For example, we've got a series called ‘Around the World with Mickey and Minnie' that features the two characters dressed up in the native costume of a particular country like Japan, Mexico, even Africa. Every other month, they're somewhere new!"

The new Disney line announcement comes at an especially fortuitous time. It is scheduled to release right in line with the company's new UFO Catcher, a brand new crane machine that is "out of this world." SEGA UFO Catcher is a two-player cabinet that comes with three different claw sizes to pick up different sizes of plush, and a stable, steady arm for better gameplay. A special plush program and even exclusive pieces will be available for SEGA UFO Catcher operators only. "Our Disney plush plus SEGA UFO Catcher have experienced success at our test sites," remarked Cane, "The response when we debuted both at the ASI Show in Chicago in March was incredible."

Rick Rochetti, the President of Sega Amusements USA, Inc., stated, "This is a phenomenal opportunity for us, as Disney is one of the most recognizable brands in the world with characters we all know and love. We are eager to bring this outstanding merchandise to the crane industry."

See our new Disney Plush photos at http://www.sau.sega.com/merchandise/disney!

About Sega Amusements U.S.A., Inc.
Serving the North and South American markets, Sega Amusements USA, Inc. is a wholly owned subsidiary of Sega Corporation, Japan. Sega Amusements USA, Inc. is an industry leader in creating state-of-the-art interactive video, self contained merchandising, and redemption game play experiences through the utilization of complementary technologies and devices to enhance player enjoyment and loyalty. Products include single-player upright video games, self-contained merchandisers, and multi-player attendant operated simulators.

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