Mythic Entertainment Reaches Agreement to Settle Litigation with Microsoft

MYTHIC ENTERTAINMENT REACHES AGREEMENT TO
SETTLE LITIGATION WITH MICROSOFT

Mythic to Receive “Mythica” Trademarks and
Domain Names as Part of Agreement

FAIRFAX, VA – May 25th, 2004 – Mythic
Entertainment, developer and publisher of the award-winning massively
multiplayer online role-playing game “Dark Age of Camelot(R),” and many other
popular online games, announced today that Mythic and Microsoft Corp., one of
the industry leaders in computer software and technology, have reached a
mutually acceptable settlement of the trademark infringement and unfair
competition suit that Mythic filed against Microsoft last year in the U.S.
District Court for the Eastern District of Virginia, in Alexandria.

As part of the settlement Microsoft has
agreed not to use the term “Mythica” or a number of derivations of that term in
connection with future on line computer games, and to drop its U.S. applications
to register Mythica as a trademark. In addition, Microsoft will assign to
Mythic, for undisclosed consideration, certain international trademark
applications and registrations, common law rights and associated goodwill
pertaining to the name Mythica, as well as domain names that were using the name
in commerce. As part of the settlement, neither party admitted any fault or
liability.

“We are very pleased with the settlement of
this suit. We have worked hard for nine years to earn our reputation for
producing high quality online games,” Mark Jacobs, president and CEO of Mythic
Entertainment, said. “And in the end, we got exactly what we had asked for from
the beginning: the right to use our Mythic name and registered trademark without
infringement.”

“When we filed this suit we said that we were
not looking for ‘jackpot justice’ and once Microsoft recognized this we were
able to work out this settlement. We are extremely pleased with the resolution,
the settlement and Microsoft’s and its counsel’s behavior during the
proceedings.”

The case alleged that a forthcoming online
game from Microsoft, “Mythica,” and pre-release publicity for such game,
infringed Mythic’s name and federally-registered trademark MYTHIC
ENTERTAINMENT(R), and amounts to unfair competition in violation of federal and
state law. The complaint alleged that the term “Mythica” is so similar to
Mythic’s registered mark and name as to be likely to cause confusion, mistake or
deception among consumers.

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