ARRESTS MADE IN RELATION TO HALF-LIFE 2 THEFT Online Community Tracks Down Hackers June, 10 2004 - Arrests have been made in several countries related to the break-in to Valve's network, theft of the Half-Life 2 source code, and release of the source code on the Internet. "Within a few days of the announcement of the break-in, the online gaming community had tracked down those involved," said Gabe Newell, Valve's CEO. "It was extraordinary to watch how quickly and how cleverly gamers were able to unravel what are traditionally unsolvable problems for law enforcement related to this kind of cyber-crime." Thousands of tips were received related to the criminal activities, with a core group of people who were able to analyze and backtrack from these clues. Subsequent to these individuals being identified, Valve has been working with various national authorities to prepare cases against those involved, leading to these arrests. "It was very uplifting to see how the community rallied and tracked these people down. Everyone here at Valve is once again reminded of how much we owe to the gaming community," added Mr. Newell. For specific details on the arrests, please contact the Northwest Cyber Crime Task Force, Seattle, 206-262-2030. About Valve Founded in 1996, Valve creates entertainment software titles, including Half-Life®, Counter-StrikeTM, and Team Fortress®. Valve's portfolio accounts for over 10 million retail units sold worldwide, and over 88% of the online action market. More information about Valve is available through the company's Web site at www.valvesoftware.com.