THQ ACQUIRES VOLITION
September 5, 2000

THQ today announced that it has acquired Volition by issuing 890,100 shares of common stock (valued at approx. $19 million), assumed existing Volition stock options providing for the future issuance of approximately 109,900 shares of THQ common stock, and assumed approximately $500,000 in net liabilities. The acquisition completed on Aug. 31, 2000, and will be accounted for as a pooling of interests.

Volition game developer for next-generation console systems and PC, best known for Descent and Freespace. Led by industry veteran Mike Kulas, who will continue to manage Volition as its president, Volition will contribute to THQ's PlayStation 2, XBox, and PC product lines.

Volition is currently working with THQ to develop Summoner and Red Faction for PS2 and PC. In connection with this transaction, THQ subsequently will acquire Volition's matching service, Parallax Online, which offers support for Volition's current and future games.

"Volition is a strategic addition to THQ's business," stated Brian Farrell, president and CEO, THQ. "Their technological capability and creative talent have brought about some of the most original, innovative gameplay in the industry. We look forward to the PlayStation 2 and PC launches of 'Summoner' and 'Red Faction' and many more contributions from the Volition teams."

"We have worked as a developer with THQ for a long time and we know this will be a perfect fit," said Michael Kulas, president, Volition. "THQ has great people who understand the creative process, and we look forward to developing many great games with them."