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WINDWARD STUDIOS, INC.

For immediate release
February 25, 1999
Two Years and Almost Half a Million Dollars Later:  Head Games Publishing
Still Refuses to Pay Royalties for Enemy Nations

Windward Studios, Inc., announced today that it has filed for arbitration
against Head Games Publishing, a wholly-owned subsidiary of Activision,
Inc., for non-payment of royalties.  Despite having sold over 35,000 copies
of the game, Enemy Nations, and grossing almost a half million dollars, Head
Games claims that no royalties are due to the developer, Windward Studios.

A little background:  About 2 years ago, as the development of Enemy Nations
was completed, the original publisher, Viacom New Media, was closed down and
Windward Studios was left with a finished game, a large debt, and no
publisher. Having no interest in publishing the game itself (Windward
Studios� expertise and interest is in game development), the company signed
an agreement with Head Games in January, 1997 wherein Head Games became the
publisher for Enemy Nations.  Pursuant to the agreement, Head Games paid
absolutely no development costs, advances or any other-up front payments to
Windward Studios and, as such, royalties payable to Windward began with the
very first copy of Enemy Nations that was sold.

During the months of January and February, 1997, Windward Studios shipped
review copies to all of the game magazines (paper and web) and got the demo
placed on the magazine�s demo CDs. (Yes, that�s supposed to be the publisher
�s job�.)  Over the next several months Head Games kept promising to "ship
shortly." Enemy Nations, in the meantime, was receiving top ratings. The
reviews were appearing in the magazines, building demand for the game. The
second biggest selling season (Feb/Mar) was slipping by. The game was ready.
And they didn�t ship it. Finally, in March, out of desperation, Windward
Studios initiated direct web sales.  With no experience in manufacturing a
game, Windward still managed to begin shipping a full 2 months before Head
Games.

In May, Head Games finally shipped Enemy Nations; during the slowest selling
season of the year (summer), months after the reviews appeared in the
magazines, and with absolutely no advertising. (To add insult to injury,
Head Games priced Enemy Nations at $29.95; the same price as the shovelware
products they had produced up to that point. Every other top-rated game at
that time was priced at $39.95 or higher.)

What�s happened to Windward since then?  When Head Games declined to pay
royalties, Windward Studios had to be shut down. But this goes beyond
eliminating one more game company that was trying to deliver quality games.
It demonstrates to developers that even if you successfully produce a
quality game and get it to the stores, you still may not be paid.  It�s one
more nail in the coffin of small, independent game developers. When a Head
Games or other publisher screws an independent developer, it sends the
message to other developers that the only safe avenue is to go to work for
one of the major publishers, who are unfortunately not as willing to try new
ideas.

And what about Head Games?  It is Windward�s belief that Head Games needed
to retain all of the receipts from the sale of Enemy Nations to stay in
business and to fund their other projects, one of which was Cabella Big Game
Hunter. Due to the success of that title and other projects, Head Games was
purchased in June, 1998 by Activision, Inc. for millions of dollars in
stock.

While paying no development or up-front costs and reporting sales of almost
$500,000, they still maintain that there is no profit.  A half million
dollar return on a zero dollar investment � what a phenomenal business
model.  No wonder Activision acquired them.


For further information, contact David Thielen, Windward Studios at
303-499-2544, email dave@windward.net or visit www.windward.net