SEGA DENIED RE-HEARING BY NINTH CIRCUIT APPEALS COURT

SAN JOSE, CA-JANUARY 25, 1993 --The Ninth Circuit Court of Appeals today
denied both of Sega's requests for re-hearing in the landmark Sega vs.
Accolade case. In its request for a re-hearing before the original three
judge panel, and its subsequent request for a hearing before all
twenty-eight judges of the Ninth Circuit, Sega sought to reverse the
Court's original decision of August 28, 1992, which dissolved the District
Court's injunction against Accolade, the only independent videogame
manufacturer for the Sega Genesis.

In its unanimous decision to deny a re-hearing, Circuit Judges Canby,
Reinhardt and Leavy noted, "The panel has voted to deny (Sega's) petition
for rehearing and to reject the suggestion for rehearing en banc. The full
court has been advised of the suggestion for rehearing en banc and no
active judge has requested a vote on whether to rehear the matter en
banc."

"Today's announcement further strengthens the ability of American companies
to compete in the worldwide video game and computer software industries,"
stated Accolade Chairman, Alan R. Miller. "The Court recognizes that
competition spurs innovation, which ultimately benefits consumers and
society."

Peter M.C. Choy, Chairman of the American Committee for Interoperable
Systems and Deputy General Counsel of Sun Microsystems, Inc., commented,
"The unanimity of the Ninth Circuit's decision indicates the court's
understanding of the importance of and support for competition in the
computer industry. The decision validates ACIS' participation as a "friend
of the court" in this and several other recent important cases involving
copyright issues applied to computer software."

In its lawsuit, Sega alleged that its copyright and trademarks were
infringed when Accolade studied a Sega Genesis game system and several
Sega game cartridges to learn how to make Accolade games compatible with
the system. The Ninth Circuit Court of Appeals, however, concluded that
disassembly of copyrighted object code is, as a matter of law, a fair use.
On the trademark issues, the Ninth Circuit stated that Sega's conduct-was
"clearly unlawful" and "inconsistent with the Lanham Act" when it
knowingly caused the message "Produced by or Under License from Sega of
America," to appear on-screen when Accolade's cartridges were inserted
into the game console.

Miller concluded, "Accolade continues to move ahead in its development of
quality games for the Sega Genesis. We look forward to the release of
several games this year, including such already highly acclaimed Products
as Al Michaels Announces HardBall III, Jack Nicklaus Power Challenge Golf,
and our soon to be released original character based platform game, Bubsy
In Claws Encounter of the Furred Kind, which critics have predicted will
be the hottest new video game of 1993."

Accolade, with headquarters in San Jose, California, is a leading developer
and marketer of entertainment software for leading personal computers and
for leading videogame machines including Super Nintendo Entertainment
System, Nintendo Gameboy and Sega Genesis.

Accolade, 5300 Stevens Creek Blvd, San Jose, CA 95129
408-985-1700;  Fax: 408-246-1053

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