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KOCH MEDIA SELECTED AS DISTRIBUTION PARTNER FOR FERRARI CHALLENGE IN MAJOR FRENCH AND GERMAN SPEAKING TERRITORIES.

Mayfair, London– 17th July 2007– System 3 appoints Koch Media as exclusive distribution partner for the eagerly anticipated Ferrari Challenge video game. The deal secures Koch Media's distribution network for the major French and German speaking territories.

Koch Media were selected from a large list of suitors because of they are the largest independent distributor in this territory. System 3’s multi-million euro marketing plans, which are currently being kept closely under wraps, include many local events taking place across Europe culminating in the largest consumer marketing campaign the company has ever undertaken.

The game has been developed under close scrutiny by the Ferrari factory and its technicians and that game is set to be the most-loyal use of the Ferrari brand and vehicles in a video game to date. Koch’s understanding of the importance of the Ferrari license in these key video game markets will prove a huge advantage during the pre-launch marketing.

System 3’s CEO, Mark Cale said,“The distribution reach of Koch media was never in question, but we needed a company that understands our marketing strategy and has the resource to realise our plans. Koch has shown the level of commitment that we were looking for and we’re delighted to be working with them on this key launch”.

Managing Director of Koch Media, Klemens Kundratitz added, "We are delighted to have reached this agreement with System 3. The company has distinguished itself in the market through years of experience and is the ideal partner for us. With the capabilities of both partners and the license by a company of worldwide renown such as Ferrari, we are confident that we will be able to offer players a unique racing game experience,"

The Ferrari Challenge video game will be published on an array of gaming consoles including; PlayStation? 3, PlayStation? 2, Nintendo Wii™, PlayStation?Portable and Nintendo DS™.

This release was issued by PEPPERMINT M, a marketing company specialising in the mobile entertainment, toy, video games and licensing sectors.

For more information see: www.peppermintm.co.uk

System 3 Contact:

Simon Jones, Peppermint M Ltd

Tel: +44 (0) 7889 162939,

Email: simon.jones@peppermintm.co.uk

Koch Media Contact:

Ute Palmer, Head of PR Koch Media

Tel: +49 89 24 245 143

Email: u.palmer@kochmedia.com

-- About System 3 Software --

System 3 has been part of the fabric of the video game industry since 1982 and is widely known as a company of innovation with a strong emphasis on creating compelling gameplay. The company, one of the last remaining independents, operates two key brands; System 3– a premium game publisher and Play It– a budget game publisher.

The company holds video game rights for properties including; Ferrari, Gottlieb, Williams and Epyx.

System 3 produces game for the key hardware platforms including; Nintendo Wii, Nintendo DS, PlayStation?2, PlayStation?3, PlayStation?Portable and Windows?-based personal computers.

The company website is located at: www.system3.com

-- About Koch Media --

Koch Media, founded by Franz Koch and Klemens Kundratitz in 1994, is a leading producer and marketer of digital entertainment products in Europe. The focus is on the publishing and licensing of software products, games and DVD movies. The company's own sales activities, marketing and distribution extend throughout Europe, and it has formed strategic alliances with a number of software and games manufacturers: ACDSystems, D3Publishing, Digital Publishing, G-Data, JoWooD, Lexware, Namco Bandai, Pinnacle, Sony Online Entertainment, Square-Enix, Sunflowers, Sytem3, etc. Headquartered in Planegg near Munich, Koch Media owns branches in Germany, England, France, Austria, Switzerland and Italy. www.kochmedia.com

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