Acclaim Announces Burnout

ACCLAIM ENTERTAINMENT, INC. ANNOUNCES 'BURNOUT'' FOR PLAYSTATION®2 COMPUTER ENTERTAINMENT SYSTEM

Criterion Games' Eagerly Anticipated Arcade Racing Title to Ship in November for Next Generation System

GLEN COVE, NY, August 8, 2001 - Expanding upon the breadth and depth of its holiday lineup for the next generation gaming platforms, Acclaim Entertainment, Inc. (NASDAQ.SC: AKLM) today announced that it has entered into an exclusive global publishing agreement with Criterion Games Limited for their eagerly anticipated arcade driving game, Burnout(TM), for the PlayStation®2 computer entertainment system. The title, which has been in development with the UK-based developer for more than 18 months, will be released this November.

"Criterion possesses the technologies to harness the power of the PlayStation®2 computer entertainment system and deliver an immersive driving game that is poised to take the genre to a new level," said Evan Stein, Vice President of Brand. "With its high-speed action and dramatic crash sequences, Burnout(TM) will be a 'must have' this holiday season for racing game enthusiasts."

Burnout(TM) takes the white-knuckle, foot-to-the floor action often associated with track racing, and brings it to major highways and densely populated city streets. Inspired by some of the most memorable car chase scenes from the greatest action films of all time, Burnout(TM) features an incredibly sophisticated and intelligent traffic system, which challenges players to race to the finish line at breakneck speeds through a myriad of checkpoints and obstacles. With dramatic crashes possible with every turn of the wheel, competing drivers are rewarded for pushing the envelope and their skills to the extreme. Burnout(TM) also includes a simulated in-game heart monitor, which rewards the player with incredible bursts of speed as they experience danger and their pulse increases.

"We set out to create an exciting, rewarding and intuitive arcade racing game that would appeal to the masses," added Fiona Sperry, Studio Head and Vice President of Criterion Games Limited. "Burnout(TM) has already generated excitement among the European media and was well received at E3, where we demonstrated the product behind closed doors."

UK-based PSM2 magazine voted Burnout(TM) as the "best racer" shown at the 2001 E3 show in Los Angeles. According to Computer and Video Games, "Burnout(TM) is the first PlayStation®2 computer entertainment system game that'll make your eyes water!"

In addition, Burnout(TM) will offer a broad array of features, including:

• Multiple cars to select, race and crash;
• Real-time vehicle crashes, highlighted by amazing slow motion instant replays that dramatically illustrate the massive damage that can be unleashed;
• Sixteen exciting courses, each filled with unique challenges and obstacles, including such locations as the United States, Europe and the Orient;
• Multiplayer split-screen action for head-to-head competition;
• More than 300 vehicles on each course to interact with;
• Intelligent traffic system, featuring three distinct types of driver behaviours;
• Dolby Digital surround sound technology;
• Dual-shock controller compatible, letting players feel every turn and crunch of the car!

Burnout(TM) will be supported with an integrated marketing campaign and dedicated Web site at www.acclaim.com. The game will be available in November for the PlayStation®2 computer entertainment system at a suggested retail price of $49.99.

Criterion Software and Criterion Games Background Information
Founded in 1993, Criterion Software is a rapidly expanding organization, which currently employs over 160 people in its software technology and game development divisions. The company is headquartered in Guildford UK, and has offices in Tokyo, Austin, Paris and Derby. Criterion Games is dedicated to the development of accessible and rewarding games for next-generation console systems such as the PlayStation®2 computer entertainment system, Microsoft's Xbox' video game system and Nintendo's GAMECUBE'. Criterion Software is a wholly owned subsidiary of Canon, Inc. Further information on Criterion Games can be found at www.criteriongames.com.

About Acclaim Entertainment
Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a leading worldwide developer, publisher and mass marketer of software for use with interactive entertainment game consoles including those manufactured by Nintendo, Sony Computer Entertainment, Sega and Microsoft Corporation as well as personal computer hardware systems. Acclaim owns and operates four studios located in the United States and the United Kingdom, and publishes and distributes its software directly in North America, the United Kingdom, Germany, France, Spain, Australia and the Pacific Rim. Acclaim also distributes entertainment software for other publishers worldwide, publishes software gaming strategy guides and issues "special edition" comic magazines from time to time to support its time valued brands, Turok and Shadow Man. Acclaim's corporate headquarters are in Glen Cove, New York and Acclaim's common stock is publicly traded on NASDAQ.SC under the symbol AKLM. For more information please visit our website at www.acclaim.com.

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