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 EA.com-subsidiary 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.