So Long Battlefield

It was fun while it lasted. Thats right. Im giving up the ghost, so to speak. You see, EA has tendered an offer for all the outstanding shares of Digital Illusions (DICE), supposedly to give DICE access to gaming platforms currently in development. What lesson have we learned when EA buys a studio? Heres a hint. Take a look at EAs past acquisitions…

Origin – Ultima
Maxis – SimCity
Westwood – Command &Conquer
Bullfrog – Dungeon Keeper

Thats just from the top of my head. Where are they now? I would look for BF2 to be the last viable PC game put out by DICE, unless EA screws that up as well.

So long DICE. Its been nice knowing you. If you really want the full details, click Read More for the Press Release from EA. EA ISSUES TENDER OFFER FOR OUTSTANDING SHARES IN SWEDISH DEVELOPER, DIGITAL ILLUSIONS

Board of Directors of Digital Illusions Recommends the Offer Which Would Accelerate
Readiness For Game Console Technology Transition Redwood Shores, CA and Stockholm, Sweden — November 15, 2004 —

Electronic Arts Inc. (NASDAQ:ERTS) today announced a tender offer for all outstanding shares of the Swedish game developer, Digital Illusions CE AB (publ) (DICE). The offer is scheduled to close on December 27, 2004. Electronic Arts (EA) currently owns approximately 19 percent of DICE’s outstanding shares.

Digital Illusions’ Board of Directors unanimously recommends to the DICE shareholders that they accept the EA offer. Joining EA will accelerate DICE’s transition to development for new platforms, including the next generation consoles expected in 2006-2007. EA is the world’s leading developer and publisher of interactive entertainment with the largest studio operation and most extensive network of development tools and libraries. As a fully integrated part of EA, DICE will have access to EA resources, tools and libraries.

“The game industry is entering a very challenging period of technology transition,” said DICE’s Chairman of the Board Torsten Larsson. “Making DICE a full partner with EA will strengthen DICE’s ability to navigate the transition to the next generation of technology.” “At EA, we see this as an opportunity to accelerate the growth of a great studio team,” said Rory Armes, General Manager of EA European Studios. “In the next five years, we hope to introduce new franchises and double the number of people working at this studio.”

“This is a great opportunity for our company,” said DICE’s CEO Patrick Soderlund. “DICE will receive added resources, technology tools and expertise for meeting the challenges of the platform transition.” DICE and EA have had a close working relationship since 2002 when EA began publishing and distributing DICE games. In 2003 EA invested in DICE, acquiring roughly 19 percent of DICE’s shares and the companies concurrently entered into a 15-year distribution agreement. To date, the partnership has produced many critical and commercial successes including Battlefield 1942, Battlefield: The Road to Rome and Battlefield Vietnam.

ABOUT THE TENDER OFFER
An English version of the tender offer materials is being mailed to US residents who are shareholders of DICE. US residents who are shareholders of DICE may also request an English version of the tender offer materials by calling EA Investor Relations at (650) 628-7327.

The tender offer is not directed to persons whose participation requires a further prospectus, registration or measures other than those required under Swedish law. This press release may not be distributed or released in any country in which distribution of the tender offer requires measures as stated in the preceding paragraph or is in contravention of the rules in such a country. This announcement is a translation of the Swedish announcement and in the event of any difference between the two, the Swedish announcement will prevail.

ABOUT ELECTRONIC ARTS
Electronic Arts (EA), headquartered in Redwood City, California, is the worlds leading interactive entertainment software company. Founded in 1982, EA posted revenues of $2.96 billion for the fiscal year ended March 31, 2004. The company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers and the Internet. In 2003, EA had 27 titles that sold more than one million copies. EA markets its products under three brand names: EA SPORTSâ„¢, EA GAMESâ„¢ and EA SPORTS BIGâ„¢.
For more information, visit EA’s homepage and online game site at
http://www.ea.com.

ABOUT DIGITAL ILLUSIONS
ounded in 1992, Digital Illusions is an award-winning developer of interactive entertainment based in Stockholm, Sweden, with offices in New York and London, Ontario Canada. The company has more than 200 employees and develops games in basically all existing platforms. Recent titles include Battlefield 1942 (elected Game of The Year) and Battlefield Vietnam for Electronic Arts, RalliSport Challenge 1 & 2 for the Microsoft Xbox. Digital Illusions’ Series A share is listed on Nya Marknaden (an unofficial marketplace where smaller companies’ shares can be traded in the Stockholm Stock Exchange’s trading system, SAXESS) under the symbol DICE A.
For more information, visit Digital Illusions’ homepage at http://www.dice.se.

FORWARD-LOOKING STATEMENTS
Some statements set forth in this release contain forward-looking statements that involve risks and uncertainties. Statements including words such as “anticipate”, “believe”, “expect” or “hope” and statements in the future tense are forwardlooking statements. These forward-looking statements are subject to business and economic risks and actual events or actual future results could differ materially from those set forth in the forward-looking statements due to such risks and uncertainties. Some of the factors which could cause EA’s or DICE’s results to differ materially from expectations include the following: the possibility that EA’s acquisition of DICE will not be completed or that the completion may be delayed; the reaction of EA’s and DICE’s customers to the acquisition; EA’s ability to successfully integrate DICE’s operations and employees; the timely development and release of EA’s or DICE’s products; the seasonality and cyclical nature of the interactive game segment; EA’s or DICE’s ability to predict consumer preferences among competing hardware platforms; EA’s ability to secure licenses to valuable entertainment properties on favorable terms; the highly competitive nature of the interactive entertainment industry; consumer spending trends; EA’s or DICE’s ability to attract and retain key personnel; changes in effective tax rates; adoption of new accounting regulations and standards; potential regulation of EA’s or DICE’s products in key territories; developments in the law regarding protection of our products; fluctuations in foreign exchange rates; and other factors described in EA’s Annual Report on Form 10-K for the year ended March 31, 2004 and Quarterly Report on Form 10- Q for the quarter ended September 30, 2004. Neither EA nor DICE intend to update these forward-looking statements.

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