Paradox Entertainment to develop and publish Diplomacy and Squad Leader PC Games Stockholm – August 4, 2004 - Recognizing the strong worldwide awareness of the Diplomacy® and Squad Leader® brands, Paradox Entertainment AB today announced that it has licensed the worldwide rights from Atari, Inc. (Nasdaq: ATAR) and Hasbro, Inc. (NYSE:HAS) to develop and publish new PC games based on the successful Avalon Hill board and video games. The Avalon Hill line of games is managed by Hasbro’s subsidiary, Wizards of the Coast. Hailed as two of the best known strategy game brands in the world, Diplomacy® and Squad Leader® have attracted millions of players in their previous editions. Internal teams at Paradox, known for specializing in the creation of strategy games, will develop the new PC games. Past Paradox projects include the award-winning Europa Universalis®, Hearts of Iron™ and Crusader Kings™. “We will be working closely with Atari and Wizards of the Coast to make sure we maximize the potential these brands have. We feel that Paradox is the right partner to develop the PC Games these brands and their fans deserve”, says Theodore Bergquist, CEO of Paradox Entertainment. Paradox Entertainment was created to build fantasy, science fiction and alternative history brands in cross-media platforms. The interactive division has a long experience in developing and publishing strategy games for the PC platform. Past titles include the award-winning bestselling titles Europa Universalis, Hearts of Iron, Victoria, etc. Wizards of the Coast, Inc., a subsidiary of Hasbro, Inc. (NYSE:HAS), is a worldwide leader in the trading card game and tabletop roleplaying game categories, and a leading developer and publisher of game-based entertainment products. The company holds an exclusive patent on trading card games (TCGs) and their method of play and produces the premier trading card game, MAGIC: THE GATHERING®, among many other trading card games and family card and board games. Wizards is also a leading publisher of roleplaying games, such as DUNGEONS & DRAGONS®, and publisher of fantasy series fiction with numerous New York Times best-sellers. For more information, visit the Wizards of the Coast website at wizards.com. "Magic: the Gathering and Dungeons & Dragons are trademarks of Wizards of the Coast, Inc. in the USA and other countries. Diplomacy and Squad leader are trademarks of Hasbro, Inc. All rights reserved."