SAN FRANCISCO - Nov. 19, 1999--Sega® of America, Inc.'s 128-bit, Internet-ready Sega Dreamcast(TM) videogame console has been named 1999 ``Machine of the Year'' by TIME Digital, TIME Magazine's publication devoted entirely to personal technology.

Sega Dreamcast has been cited for its revolutionary design and technology advances, including 128-bit 3D graphics capabilities, home theater-quality sound, portable gaming options and Internet functionality, including web browsing, chat, e-mail and online gaming. The honor is part of TIME Digital's special holiday issue dated Nov. 29, 1999, on newsstands Monday.

Sega Dreamcast was chosen as a leading technology product for the year, beating out products such as MP3 players and personal video recorders.

The story, written by Chris Taylor, cites not only Sega Dreamcast's superior technology and game library, but the incredible consumer buzz and sales momentum, which has led consumers to purchase close to 1 million Sega Dreamcast consoles since it launched in the U.S. on Sept. 9, 1999.

``We at Sega are honored to have Sega Dreamcast hailed as the 'Machine of the Year' by the respected editorial staff at Time Digital,'' said Peter Moore, senior vice president, Sega of America. ``Moving forward, Sega will continue to set new standards in gaming, especially via the online Dreamcast Network, which will further expand consumers' gameplay experience on Sega Dreamcast.''

This announcement follows a stream of additional honors received by Sega Dreamcast in the last two weeks. Popular Science Magazine awarded Sega Dreamcast the ``Best of What's New'' Award. In CBS's annual Toy Test, Sega Dreamcast titles won seven of the 10 spots for best console software and The Wall Street Journal recently stated, ``This Christmas, the Dreamcast is the only game in town.''

About Sega Dreamcast

Sega Dreamcast is available in the U.S. at a suggested retail price of $199, with a built in 56K modem, allowing for full Internet functionality. The system had 18 titles available at launch that will grow to more than 40 titles by the end of the year. Third-party titles currently in the works will bring the total Sega Dreamcast game library count to more than 160 in the year 2000.

Along with its low price point, Sega Dreamcast has achieved other industry firsts. Its advanced 128-bit architecture makes it the first console with evolutionary capabilities, allowing it to grow and change to match advances in technology and the needs and desires of the consumer.

Sega Dreamcast is also the most powerful video game console ever created. It is 15 times more powerful than a Sony PlayStation(TM), ten times more powerful than a Nintendo® 64 and has four times the graphics processing power of the fastest Pentium II processor.

In its initial four days, Sega sold a total of 372,000 Sega Dreamcast systems, easily surpassing the previous industry record holder, Nintendo 64, which took six days to hit 350,000 when it launched in 1996.

In the first 24 hours of availability, Sega Dreamcast netted over $97 million at retail, more than tripling the past entertainment industry record set by Star Wars: The Phantom Menace at $28 million on its first day.

About Sega of America

Sega of America, Inc. is the arm of Tokyo-based Sega Enterprises, Ltd. responsible for the development, marketing and distribution of Sega video game systems and video games in the Americas.

Sega Enterprises, Ltd. is a nearly $2.5 billion company recognized as the industry leader in interactive digital entertainment media, and is the only company that offers interactive entertainment experiences both inside and outside the home.

Sega of America's World Wide Web site is located at (http://www.sega.com).

About TIME Digital

TIME Digital, TIME's technology magazine which is produced eight times a year, appears in 950,000 subscriber copies of TIME (circulation over 4 million) and newsstands. It includes investigative stories from the frontlines of technology, profiles and the latest in products and trends. Joshua Quittner serves as the managing editor.