STRATEGY FIRST AND ARXEL GUILD JOIN FORCES TO DISTRIBUTE DISCIPLES II AND TRAINZ IN EUROPE

Montreal, Quebec. February 11th, 2002 - Strategy First and Arxel Guild (part of the CTO S.P.A. Group) announced today that they have entered an exclusive European distribution agreement for two of Strategy First's premier titles, Disciples II: Dark Prophecy and Trainz.

"Strategy First is extremely pleased to have Arxel Guild as our European distribution partner for these two titles. Their knowledge and expertise of the European market will help us replicate the current success of both titles in North America. We are confident in their marketing abilities, and we are looking forward to working with them over the long term," said Stewart Braybrook, Director of European Operations for Strategy First.

"Disciples II and Trainz are perfectly in line with our new catalogue orientation: a limited number of excellent products for each segment and on all platforms. DISCIPLES II is a great strategy game that I’ve been playing relentlessly for the last month! The ambience is fantastic, the graphics totally immersive and the gameplay perfectly suited to the genre. As for TRAINZ, it is quite simply the best game of its category: Model Railroad Simulation,” said Guillaume de Fondaumière, Arxel Guild's Chairman.

Arxel Guild will be responsible for the distribution of both Disciples II and Trainz throughout Europe. The territories covered in the agreement are France, Great Britain, Germany, Austria, Italy, Belgium, Holland, Luxembourg, Portugal, Spain, Greece, Ireland, as well as Russia, Ukraine, The Baltic States, Yugoslavia, Slovenia, Croatia, Turkey, Romania, Switzerland, Liechtenstein, Monaco, Hungary, Bulgaria, and Israel.

About Disciples II: Dark Prophecy

Developed and published in North America by Strategy First, Disciples II is a state-of-the-art turn-based strategy game offering beautiful 2D and 3D graphics and compelling game play. Already receiving critical acclaim, Disciples II is flying off the store shelves in North America, as fans of the genre eagerly join the Disciples experience. European gamers will also be able to share in the experience soon when the game makes its European debut this April.

About Trainz

Developed by Australian developer AURAN and published in North America by Strategy First, TRAINZ is a high-end model railroad simulation. It takes the genre to a new level by providing all the tools & interactivity models that model railroad enthusiasts want. The powerful Discreet gmax game pack, included with every game, will allow users to create and import their own 3D content into the game. Trainz allows users to create spectacular layouts, collect locomotives and rolling stock, and ride the rails while sharing the experience with people from all over the world via the Internet. Published in North America on February 12t, Trainz will hit European store shelves in the summer of 2002.

Strategy First Inc. is a leading developer and worldwide publisher of entertainment software for the PC. Founded in 1990, the company has grown rapidly, publishing major games in the industry and simultaneously developing its own in-house titles such as O.R.B., Disciples II, Nexagon: The Pit and Zero-G Marines. After winning numerous awards for games such as

Disciples: Sacred Lands, Europa Universalis, Kohan: Immortal Sovereigns and Steel Beasts, Strategy First continues to push the gaming envelope with its own groundbreaking titles, while maintaining its reputation as a unique alternative for independent developers seeking to market their games to a worldwide audience.

The Arxel Guild specialises in the development and publishing of leading video games. A subsidiary of the CTO SpA group listed on the new Milan stock exchange (CTO.MI), the company employs 90 game specialists, 65 of whom work in development at the 4 Arxel Tribe studios. THE ARXEL GUILD has recently acquired major movie and character properties to be adapted to video games, including ALFRED HITCHCOCK, PADDINGTON and HANNIBAL. THE ARXEL GUILD publishes PC and new generation console games developed in its own studios or by third developers/publishers under the ARXEL TRIBE label.