"Tremor Games has the talent and creative vision to deliver games that push the bounds of what's possible in video gaming, making them a perfect fit for Microsoft Game Studios," said Peter Parsons, Director of Marketing for Microsoft Game Studios. "As their publisher, Microsoft will back them with technical support, testing, marketing and distribution power while the artists focus on bringing their imaginations to life on Xbox."

"We are fortunate to have Microsoft as a partner," said Steven Oshinsky, Chairman and CEO of Tremor Entertainment. "The Xbox has transformed the game industry, enabling our artists and developers to bring their creative visions to life without having to wrestle with technology." Oshinsky added, "Tremor is committed to creating an unparalleled game universe for the Xbox, where the level of play is continuously heightened through strong game design."

Microsoft expects to announce additional details about its Xbox titles currently in development and other developer alliances over the next few months.

About Microsoft Game Studios

Microsoft Game Studios is a leading worldwide games company with two core businesses: games development and publishing (http://www.microsoft.com/games/) and Zone.com. Zone.com (http://www.zone.com/) is the Internet's largest game site.

About Tremor

Founded in 1998, Tremor Entertainment (OTCBB:TROR - News) is a developer of interactive entertainment software for the most popular video game consoles, including Microsoft's Xbox, Sony Playstation, and Sega Dreamcast. Tremor creates software that provides immersive game experiences by combining advanced technology with engaging content, vivid graphics and rich sounds. The Tremor creative team includes industry veterans whose past credits for other companies include: STARCRAFT, WARCRAFT and DIABLO. Tremor has developed a variety of products including SEGA SWIRL, RAILROAD TYCOON II, and KISS: PSYCHO CIRCUS. www.tremorgames.com

About Microsoft

Founded in 1975, Microsoft (Nasdaq:MSFT - News) is the worldwide leader in software, services and Internet technologies for personal and business computing. The company offers a wide range of products and services designed to empower people through great software -- any time, any place and on any device.

Note: Microsoft and Xbox are either registered trademarks or trademarks of Microsoft Corp. in the United States and/or other countries.