Threewave Licenses Valve's Source Engine!

THREEWAVE LICENSES VALVE’S SOURCE™ ENGINE FOR FUTURE PC GAMES

Game Development Studio Specializing in First-Person Shooters to Leverage Source Engine for Episodic Content and PC Action Titles

VANCOUVER, BC - OCTOBER 16, 2006 – Threewave Software, a videogame developer specializing in multiplayer first-person shooters, and Valve®, a leading entertainment and technology company, today announced a licensing agreement for Threewave Software to leverage Source, Valve’s next-generation game technology, for its upcoming projects.

In development for the PC, Threewave Software’s Source-based products will be officially announced at a later date. The first Source-based project is a first-person action title that extends Source’s advanced physics system to open new gameplay dynamics, as well as provide a unique opportunity for sponsors to reach gamers in the first-person shooter genre.

“While planning our next project, we evaluated all the leading game engines, and Valve’s Source was the ideal fit for Threewave’s direction,” said Dan Irish, CEO of Threewave Software, Inc. “As we move into our sponsored content initiatives – particularly episodic content - we know that Source provides some of the best new features available. Valve’s industry-leading support and Threewave’s technical expertise, are a winning combination for creating the very best experiences for gamers worldwide.”

Source technology is available for licensing to any digital content creator working on PC and/or Xbox 360 products.

“It’s a compliment to have a talented team such as Threewave licensing our software as a core part of their business strategy,” said Gabe Newell, president and co-founder of Valve. “The trust they have put in Valve speaks highly of Source’s capabilities, and we look forward to seeing some exciting innovations in sponsored content from Threewave Software.”

About Threewave

Threewave Software is one of the fastest growing triple-A game development studios in Vancouver, British Columbia, and has worked on top franchises and brands in the FPS genre including Id's Doom™, Epic's Unreal™ engine and Activision's Castle Wolfenstein, as well as Lucas Arts’ Jedi Academy. Threewave Software is the game developer top brand managers, producers and publishers turn to when taking their multiplayer experience the next and hottest level. For more information, please visit www.threewavesoftware.com

About Valve

Valve is an entertainment software and technology company founded in 1996 and based in Bellevue, Washington. The company's portfolio of entertainment properties includes Half-Life®, Counter-StrikeTM, Day of Defeat®, Team Fortress® and Portal. Valve’s catalog of products accounts for over 20 million retail units sold worldwide, and over 80% of PC online action gameplay. In addition, Valve is a developer of leading-edge technologies, such as the Source game engine and Steam, a broadband platform for the delivery and management of digital content. For more information, please visit www.valvesoftware.com.

EDITORIAL & LICENSING CONTACTS:
Jason Holtman
Director of Business Development
Valve Software, Inc.
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Dan Irish
Chief Executive Officer
Threewave Software, Inc.
Phone: 604.331.9596 x228
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Chris Schmidt
Kohnke Communications
Phone: 415.777.4000
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