REDMOND, Wash. — April 6, 2006 — Microsoft Game Studios (MGS) today announced it has purchased U.K.-based Lionhead Studios, one of the world’s leading and most innovative video game developers and creators of “Fable®,” the hit Xbox® and Windows® franchise.

Lionhead Studios will immediately begin creating content exclusively for the Xbox 360™ and Microsoft® Windows platforms. The companies previously worked together on the popular role-playing games “Fable” for Xbox and “Fable: The Lost Chapters” for Xbox and Windows, which have collectively surpassed the 2 million global unit sales milestone, making “Fable” the best-selling role-playing franchise on the Xbox platform. “Fable” and “Fable: The Lost Chapters” enable players to make decisions that affect their character’s skills, appearances and morality and the world around them.

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