Midway Chooses Unreal Engine 3 For Next Generation

MIDWAY
CHOOSES UNREAL® ENGINE 3 FOR NEXT GENERATION GAME DEVELOPMENT

Epic
Games’ Unreal Engine 3 Technology and Tools set to be Development Base for
Midway’s Next Generation Console and PC Games

CHICAGO –
February 2, 2005
– Midway Games Inc. (NYSE: MWY), a leading developer
and publisher of interactive entertainment software, today announced a
multi-year licensing agreement with Epic Games giving Midway use of Epic’s
Unreal Engine 3 technology and tools for next generation console and PC game
development. Unreal Engine 3 technology and tools are now in use at Midway’s
internal studios including: Midway’s Chicago studio, the makers of NBA Ballers
and the Mortal Kombat franchise; Midway’s Austin studio, developers of Area 51;
and Surreal Software, the creators of The Suffering.

This agreement with
Epic furthers Midway’s strategy to align itself with the top development
technology and talent in the industry. The relationship also allows Midway to
build on Unreal Engine 3 technology to create specific tools and assets that
will be utilized across all Midway internal studios. This studio-wide effort is
expected to be instrumental in the development and progression of major
franchises as well as the creation of new game properties. The agreement also
underscores Midway’s commitment to the premium PC games market.

"Great next
generation games will be defined by how far they push the envelope in terms of
graphical prowess, evolved artificial intelligence and revolutionary online
functionality beyond what gamers are currently experiencing," said David F.
Zucker, president and chief executive officer of Midway. "Our obtaining the use
of Unreal Engine 3 empowers us to begin today to produce great next generation
content. Our internal studios are already in the process of creating incredible
products with the Unreal Engine 3 technology in multiple genres."

Mark Rein, vice
president of Epic Games agrees, "We are especially gratified that Midway, a
major publisher committed to developing high quality games for both next
generation console and PC platforms, in numerous styles and genres, came to us
seeking the right to use Unreal Engine 3 as a basis technology for its
enterprise."

"This relationship
with Epic is key in our continued efforts to build Midway into a world class
development organization," said Matt Booty, senior vice president of product
development, Midway. "We want all of our studios to focus on creating great
content and not on creating multiple technologies from scratch. The Unreal
Engine 3 technology is a critical step towards this goal and combined with our
own internal systems and additions, will allow Midway to maintain its leadership
in quality development as we head into the next generation."

About
Unreal Engine 3

The award-winning
Unreal Engine is known for cutting-edge graphics and a best-of-breed toolset.
Unreal Engine 3 is expected to maintain those features while adding massive
world support, multi-processor support, next-generation console optimizations,
and one of the most mature tool pipelines in the industry. Unreal Engine 3’s new
toolset is designed specifically to accelerate developers’ productivity for
ultra-complex, next-generation content. Additional information on Unreal Engine
can be obtained at
www.unrealteachnology.com
.

About Epic
Games

Epic Games Inc.,
based in Raleigh, NC and established in 1991, is a developer of cutting-edge
computer and video games. The company is best known as the creator of hit PC 3D
action games Unreal and Unreal Tournament, both award-winning blockbuster hits
having each sold more than one million copies. Epic is also responsible for the
Unreal Engine, which is the underlying technology for a wide range of games
including, 2002 Console Game of the Year winner, Tom Clancy’s Splinter Cell™
from Ubi Soft; PC Gamer’s 2000 Game of the Year, Deus Ex from Ion Storm/Eidos;
America’s Army: Operations, from the United States Army, and Harry Potter and
the Sorcerer’s Stone (PC) from Electronic Arts. Additional information can be
obtained through Epic’s Web site at
www.epicgames.com
.

About
Midway

Headquartered in
Chicago, IL with offices in San Diego, CA, Seattle, WA, Austin, TX , Los
Angeles, CA, and London, UK, Midway Games Inc. (NYSE: MWY) is a leading
developer and publisher of interactive entertainment software for all major
video game systems. More information about Midway can be obtained at
www.midway.com.

Unreal is a
registered trademark of Epic Games, Inc. All other trademarks are the property
of their respective companies. Midway has provided the
www.epicgames.com and
www.unrealtechnology.com links
solely as a convenience for you. The information on these sites has been
prepared by third parties, and Midway does not monitor, endorse or accept the
responsibility for the content on non-Midway sites.