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Epic Games Named to the Red Herring 100

Recognized by Red Herring Editors for Innovation and Business Strategy

Raleigh, NC, - Epic Games, an industry leader in the development of computer and video games and game technology, announced today its inclusion in the Red Herring 100 as selected by the editors of Red Herring, the premier magazine of business technology and innovation.

The Red Herring 100 recognizes the top 50 public and the top 50 private companies whose services, business models, products and quality of management define business innovation. It previews the leaders of tomorrow in a number of key technology-related sectors, including software, biotechnology, wireless, communications services, media, hardware, nanotechnology, consumer electronics and energy.

"We are passionate about what we do and are thrilled to be recognized by the editors of Red Herring magazine. It is indeed an honor to be in the company of some of the major corporations we work with such as Microsoft, Nvidia and Sony but is especially meaningful to be recognized alongside two game developers we admire so much, id Software and Valve." said Mark Rein, vice president of Epic Games.

In its sixth year, the Red Herring 100 has become the most respected list of its kind. Red Herring editors compile the list by using the same combination of subjective insights and hard metrics favored by venture capitalists and investment bankers. These factors predict a company's ability to disrupt existing markets or create entirely new ones.

The Red Herring 100 is featured in the June 2002 issue of Red Herring magazine and is also available on <http://www.redherring.com>. It includes a short profile of Epic Games.

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 1 million copies. Unreal Tournament has been recognized as the Game of the Year by many leading gaming media outlets including Computer Gaming World, the #1 PC games magazine, and has appeared on PC, Macintosh, Linux, Sony PlayStation 2 and Sega Dreamcast. Epic's Unreal engine has been licensed to several top game developers for games in a variety of genres on multiple platforms including the PC, Apple Macintosh, Linux, Microsoft XboxTM and Sony PlayStation®2. Eidos' Deus Ex, which was PC Gamer magazine's 2000 Game of the Year, and Electronic Arts' critically acclaimed Undying are among the many shipping titles built using the Unreal engine. Prior to their 3D success, Epic Games was well known for the hit shareware games Jill of the Jungle, Jazz Jackrabbit and Epic Pinball. Additional information can be obtained through Epic's Web site at www.epicgames.com.

About the Unreal Engine:

The Unreal Engine, originally created for Epic's revolutionary 3D first-person Unreal computer game and continually updated to be state-of-the-art, provides programmers with a complete solution for software development -- from design and Artificial Intelligence (AI) to texture mapping and networking. Many programmers and artists both inside and outside of the gaming industry are drawn to the Unreal engine's advanced toolset, scripting possibilities and flexibility, which makes it extremely beneficial and easy to use for numerous applications, including architectural and historical recreations. The engine is constantly being improved to provide developers with tools for creating more detailed and expansive environments.