Coming to Xbox LIVE® Arcade!

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8/25/2007

Seattle, Washington -- Aug 25, 2007 -- Hothead Games today announced
that its highly anticipated Penny Arcade Adventures: On the Rain-Slick
Precipice of Darkness episodic game series will debut on Xbox LIVE® Arcade -
the premier destination for digitally distributed, high definition original and
classic games - in early 2008.

On the Rain-Slick Precipice of Darkness: Episode One is the first title in the
downloadable series for Windows, Mac OS X, Linux and the Xbox 360™ video
game and entertainment system. Hothead is working with the Penny Arcade
creators and adventure game pioneer Ron Gilbert in an intense collaborative
development process.

"We're very excited to be bringing our game series to Xbox LIVE Arcade,"
said Vlad Ceraldi, Hothead's President. "We love Xbox LIVE Arcade's ability to
deliver great content directly to gamers. Digital distribution lets indie game
developers innovate and experiment with new gameplay concepts."


About Hothead Games

Headquartered in downtown Vancouver, British Columbia, Canada, Hothead
Games is a team of industry veterans with a track record of creating games
that are both critically acclaimed and commercially successful. Hothead is
one of the top four finalists in Telefilm Canada's ongoing Great Canadian
Video Game competition. Read all about Hothead's games at
www.hotheadgames.com.

About Penny Arcade

Equal parts online comic and commentary, Penny Arcade
(http://www.penny-arcade.com) covers videogames in a way that is genuine,
insightful and respected by the gaming community. What started as a hobby
for Jerry "Tycho" Holkins and Mike "Gabe" Krahulik has, over 8 years grown
into an online phenomenon that serves 55 million page views a month to
millions of readers worldwide. In addition to the comic strip and PAX, Penny
Arcade also manages Child's Play (www.childsplaycharity.org), a gamer-
driven charity for sick kids in Children's Hospitals across the world.