Emergent Secures $12M Financing Round and Reorganizes

Emergent Game Technologies announced that it has secured $12 million in its series D round of funding. The company's product portfolio includes products underlying Dark Age of Camelot and Oblivion with plans for future server engines and online game services. Sales growth of over 100 percent attracted funding from leaders Jerusalem Venture Partners,and Worldview Technology Partners with Adena Ventures, Walker Ventures, Copan, and Cisco Systems participating. It will also consolidate R&D to a single location and has seen four major promotions.

Full press release:

CALABASAS, Calif. (July 3, 2007) - Emergent Game Technologies today announced that it has secured $12 million in its series D round of funding. Jerusalem Venture Partners (JVP) and Worldview Technology Partners led the round with Adena Ventures, Walker Ventures, Copan, and Cisco Systems also participating. Explosive sales growth of more than 100% over the past twelve months, with incorporation of its technology into over 200 gaming titles, and broad industry recognition of Emergent's leading game development solutions led the company to close its successful funding round.

Emergent is the game development solutions company at the core of progressive game development. The Company arms developers with the flexible, modular tools they need to gain control over the escalating scale, complexity, budget and content demands of single-player and online games -- all while achieving new levels of creative freedom. Emergent provides developers and publishers the tools, technologies and services they need to create great games while simultaneously reducing development risk.

Emergent's reach extends globally, with a London-based international sales office and products used by developers in countries all over the world. Emergent is the dominant provider of games middleware in Korea and has a significant client base in China, where some of the country's largest games publisher and developers are using Emergent technology.

"Emergent is driving strong sales growth around the world, and is intelligently growing its offerings to meet the needs of the game development industry," said Gadi Tirosh, General Partner at Jerusalem Venture Partners. "Emergent delivers what game developers and publishers need most: scalable, modular development solutions that allow them to minimize their financial risk while unleashing their creativity to make great games."

In conjunction with this round of funding, Emergent also announced several organizational changes and promotions designed to accommodate the company's rapid growth and enhanced development capabilities:

1. Consolidated R&D

• To increase collaboration between its development teams, Emergent's Research and Development staff has been consolidated to a single location. With this move the company will expand its large R&D Center in Chapel Hill, NC, relocate most its Northern California staff to North Carolina and close its smaller Walnut Creek, CA studio. In addition to continued development of its award-winning Gamebryo engine, the expanded R&D Center will host Emergent's Metrics, Server, and Online Tools Development teams.

2. Promotions and Personnel Changes

• Scott Johnson has been named President of Emergent Games Technologies, promoted from Executive Vice President to oversee Emergent's rapid growth. Previously Scott was CEO and Co-Founder of Mobility Entertainment (MENT), a Vice President at Vivendi Games, and Chief Financial Officer for Universal Interactive.
• John Goodale of management consulting company Ages Entertainment has been named Vice President of Marketing and Business Development, to guide Emergent's global marketing efforts and to expand its presence in Asia.
• Lisa Wenniger, with nearly 15 years experience delivering enterprise software solutions, has been named Vice President of Product Management, and will be expanding Emergent's market-focused approach to innovation.
• David Gregory, Vice President of Systems Architecture with Emergent will take on the duties of former Vice President of Engineering & Systems Architect, Larry Mellon, who has resigned from the company to pursue other interests. David, a recognized leader in reusable technology and production process improvement, spent 11 years at Electronic Arts working on such critically acclaimed titles as The Sims™2, The Sims™ Livin' Large, The Sims™ House Party and Tiger Woods Golf.

"The games market is evolving quickly, with cross-platform production scalability and online migration becoming ever-increasing challenges to game creators," said Geoffrey Selzer, CEO of Emergent. "Aided by our world class customer service and support Emergent is evolving to successfully solve these increasingly larger problems for developers and publishers. This recent round of funding and our organizational changes will enable us to continue to deliver the most progressive development solutions available to the games industry."

Emergent's comprehensive development solutions include Emergent Elements, a family of modular tools designed to give developers the flexibility and control they need to create breakthrough gaming experiences. These tools include the award-winning Gamebryo Element, the game engine used to create hit games by industry leaders such as Bethesda Softworks (The Elder Scrolls® IV: Oblivion™ and upcoming Fallout 3), Disney Interactive Studios, EA-Mythic and Firaxis Games (Sid Meier's Civilization IV).

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About Emergent
Emergent Game Technologies provides flexible technologies and services that give developers an unmatched range of integrated capabilities for building, testing and managing games. These proven, stand-alone solutions, known as Emergent Elements, include the award-winning Gamebryo game engine used to create hit next-generation games for the PLAYSTATION®3, Xbox 360™, and PC. Emergent Elements give developers the flexibility they need to fuel creativity while reducing risk.

Emergent is headquartered in Calabasas, Calif., and has offices in Chapel Hill, NC, Austin, Texas and London. To learn more, visit www.emergent.net.

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Emergent: Redefining the craft of game development
Emergent Game Technologies provides flexible technologies and services that give developers an unmatched range of integrated capabilities for building, testing and managing games. These proven, stand-alone solutions, including the award-winning Gamebryo game engine used to create hit next-generation games such as Bethesda Softworks’ Elder Scrolls IV: Oblivion for Xbox 360™ and PC, give developers the flexibility they need to fuel creativity while reducing risk.

Emergent is headquartered in Calabasas, Calif., and has offices in Chapel Hill, NC, Walnut Creek, Calif., Austin, Texas and London. To learn more, visit www.emergent.net.

Contact:
   David Chatham
   Capstrat for Emergent Game Technologies
   919.882.1954
dchatham@capstrat.com

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