EA/NINTENDO, YAHOO SETTLE DISPUTE
March 13, 2001

Electronic Arts, Nintendo of America, and Yahoo! have entered into an agreement to work to prevent the sale of counterfeit video game products on Yahoo! Auctions and Yahoo! Classifieds.

The three companies will cooperate to ensure the effectiveness of Yahoo!'s proprietary filtering technology to screen and block counterfeit videogames on Yahoo!'s network. As part of the agreement, Electronic Arts and Nintendo will dismiss their lawsuit against Yahoo! for trademark and copyright infringement.

"Nintendo is pleased that consumers of Nintendo video game products will not have access to pirated goods on Yahoo! Auctions, and we are encouraged by the strides Yahoo! has made in removing pirated goods from their sites," said Richard Flamm, Vice President & General Counsel of Nintendo of America Inc. "Working to eliminate piracy on the Internet is one of our highest priorities."

"Software piracy is theft of intellectual property," said EA Senior Vice President and General Counsel Ruth Kennedy. "Beyond the lost revenue suffered by publishers, this unlawful activity harms the artists, designers, and engineers who create interactive entertainment. We are pleased to enter into this agreement with Yahoo!, and we welcome their active participation in our industry's crucial fight against piracy on the Internet."

"Yahoo! discourages and prohibits the listings of counterfeit merchandise as part of our Terms of Service, and we are pleased to deploy our new proprietary blocking technology as part of the fight against the sale of pirated video games on our network," said Jon Sobel, Yahoo!'s General Counsel. "This agreement with two leaders of the video game industry sends a signal to pirates to stay off our network."