June 14, 2005 - Moscow

Gaijin Entertainment, the award winning Russian game developer today announced it will be integrating the Meqon Game Dynamics system into its DAGOR 2.0 game engine.

The DAGOR engine is Gaijin's advanced new middleware system for game creation on the PC. The engine features a wide range of sophisticated graphical techniques, an optimized development environment and now, with the Meqon agreement, world-class game dynamics.

The DAGOR game engine can be licensed by game developers and publishers to provide them with a comprehensive development solution for PC.

The Meqon Game Dynamics system introduces a whole new level of realism into the game engine and from there, into the games themselves. Meqon's physics offers a new experience for the player, as it raises the level of immersion by an order of magnitude. As games become more complex and graphics ever more realistic, game dynamics and physics have become an essential part of creating consistent and believable environments and gameplay.

Anton Yudintsev, the president of Gaijin Entertainment, said, "We're very excited to be working with Meqon to integrate their game dynamics system into the new version of the DAGOR game engine. DAGOR has been created to provide development studios with a fast, efficient and advanced development environment. Physics is now a critical part of any advanced game and providing developers with an advanced and flexible system was vital to us when we were designing DAGOR. The Meqon system provides everything we were looking for and we believe it gives DAGOR the best physics on the market."

Jonas Lindqvist, the chief executive officer of Meqon Research, said, "We are delighted to have Meqon Game Dynamics integrated into Gaijin's DAGOR engine. The company has created an advanced new system for game development with a great deal of attention to detail. We are delighted that Meqon Game Dynamics has become part of this new technology and we are looking forward to seeing the first results from this new partnership. More information on the DAGOR 2.0 engine can be found at: www.gaijinent.com

About Gaijin Entertainment:

Gaijin Entertainment is a dynamically evolving and one of the most innovative Russian developer, established in 2001. Gaijin won Russian GDC "Most Innovative Game" award for original web-based game in 2003 and its real Golf sim for set-top boxes was one of the main events on NCTA show in 2004. We're not only engaged in creation of games for various platforms, but we also license our own highly technologically advanced engine Dagor Engine 2.0 to other developers. Besides, we're actively engaged in research of new, promising technologies that provide our decisions with appeal and urgency in current fast-changing conditions of the IT-market. Official site: http://www.gaijinent.com

About Meqon Research AB:

Meqon was founded in 2002 and has its headquarters in Norrkoping, Sweden. The company develops physics middleware for the computer game industry and has in its short existence enhanced both games and industrial products with its simulation products. More information available at http://www.meqon.com

Contacts:

Gaijin Entertainment

Ivan Kuznetsov

PR-manager

E: nash@gaijin.ru

Meqon

Jonas Lindqvist

Chief Executive Officier

T: +46 11 26 41 40

E: jonas.lindqvist@meqon.com

Media

Brian Baglow

Indoctrimat

M: +44 (0) 7747 792247

E: brian@indoctrimat.com