SEGA Shake Up: Consolidation of SoA-SoE

Major Sega executive shake-up #1
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SEGA Integrates SEGA of America and SEGA Europe Management Teams To Drive
Growth In Western Markets

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

SAN FRANCISCO & LONDON - (January 20, 2005) - 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; and Mike
Hayes to President and COO of SEGA Europe. 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 and
the next generation of platforms.

"Integrating the management of our US and European organisations 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
organisation 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 organisation 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 will be building on
the achievements in 2004 and striving for further growth and expanding
market share throughout 2005.

I'd hope that you're aware of the fact that Sammy bought out Sega
several months ago, including the AM2 division and any remnants of the
hardware development division there may have been. Considering the new
ownership and that Sammy is using Sega to publish some of their games
(like Guilty Gear Isuka), it's not a surprise that some amount of
consolidation is going on. It'll be interesting to see how much longer
the Sammy and Sega brand names exist exclusivly of one another. I'm
expecting that either one company will "roll into" the other (i.e. -
Sammy absorbs Sega and drops the Sega name, making for only Sammy to
exist) or that the two companies will merge under a *new* name. It may
also be interesting to see if this new ownership decides to re-invest
Sega into the hardware market.