"Tapping into Activision's leading online and retail distribution channel positions our products to have the greatest impact in the highly competitive flight and combat simulation games marketplace," said Phil Hall, General Manager, iEntertainment Network. "Successful retail distribution and sales will drive players to our online arenas which in-turn drives our recurring monthly online revenues."

Under the terms of the agreement, Activision Value Publishing will serve as exclusive U.S. distributor for three new IENT combat titles - Dawn of Aces II, Air Combat, and Armored Assault. Based on the successful Warbirds development platform, these new titles feature rich graphics and terrains, exciting World War II Electronic Battlefield, combined arms combat, and access to IENT's online arenas with the ability to support massive numbers of players and recreate most of the actual battles of World War II. All titles will be distributed with 1-2 months of free online play and feature over 45 unique airplanes, tanks, and ships, and many offline missions so players can practice their combat skills solo before coming online.

"We enjoy collaborating with top development talent and are very selective in determining which developers and publishers will be a part of our third-party distribution program, seeking best-of-breed games with promising retail potential", said Don Borchers, Director of Merchandising, Activision Value Publishing. "Activision is looking forward to these releases building out our line-up of themed combat-oriented simulation game products".

Activision Value Publishing plans to ship a number of these PC titles to major retail chains in over 100 US cities in 2003, and is expected to sell a significant number of the games via their online sales channels.