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EA & AOL play games On-line

Electronic Arts, a world leader in interactive entertainment software, hascreated a new division to publish games for the Web and to operate a seriesof new on-line gaming sites. The new division has been formed to createcontent for America Online, the world's leading Internet service company.Electronic Arts' new on-line gaming division comes on the heels of theiracquisition of Charlottesville, Virginia-based Kesmai Corporation, adeveloper of multiplayer on-line entertainment previously owned by NewsCorp. The new provides games to various other online companies including Excite,EarthLink, GolfWeb, Fox World and Fujitsu. By acquiring Kesmai, EA gainspopular game titles like AIR WARRIOR, the first graphic multiplayer on-linegame; ALIENS ON-LINE; STARSHIP TROOPERS; and MULTIPLAYER BATTLETECH. Thedeal also grants EA non-exclusive distribution rights to Fox Interactiveon-line games. Kesmai had previously been the major provider of games forAOL's Games Channel. Upon shareholder approval, EA plans to create a newcommon stock -- Electronic Arts B Common Stock -- to track the businesspotential of this new on-line venture. Once created, America Online, Inc.will purchase 10% of the new stock. Electronic Arts President and ChiefOperating Officer John Riccitiello will oversee the new Internet business.The on-line division will be based in Redwood City, CA at the ElectronicArts' facilities.

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