Press Release

VANCOUVER, British Columbia - April 2, 2008 - Hothead Games and Penny Arcade today announced the Greenhouse, a new distribution platform dedicated to supporting independent game development worldwide. Operated by the newly-formed company Greenhouse Interactive, the Greenhouse digital distribution platform will offer gamers a convenient alternative to traditional boxed games and showcase a careful selection of games that otherwise may be overlooked in a crowded retail marketplace. Built to supplement other online game delivery platforms, Greenhouse provides a content delivery method focused on independent developers, helping indie games and gamers come together.

"There are so many great games out there that you don't hear about," explained Robert Khoo of Penny Arcade. "They're too niche or too risky in terms of game play for the top publishers to be comfortable with distributing. We want the Greenhouse to be an alternative for these developers."

As of today, Greenhouse Interactive offices in Vancouver are open, with the Greenhouse beta available at www.playgreenhouse.com. Greenhouse's first game launch will be Penny Arcade Adventures: On the Rain-Slick Precipice of Darkness, Episode One - another shared project of the two companies. "Digital distribution opens so many doors for independent game development, arguably just like the VCR and DVD players did for indie films," said Vlad Ceraldi of Hothead Games. "We believe in the Greenhouse as an opportunity to support other indie developers and complement the platforms and services currently out there, ensuring that the environment for such development firmly takes root and continues to grow."

Developers interested in Greenhouse Interactive opportunities can contact Greenhouse Business Development Manager Gregan Dunn (gdunn [at] playgreenhouse.com) for more information.

About Hothead Games
Hothead Games is an independent game developer and publisher based in Vancouver, Canada. The company is committed to creating top quality games for the experienced gamer. Hothead is best known for its upcoming RPG-adventure game series, On the Rain-Slick Precipice of Darkness, based on the widely popular Penny Arcade online comic strip. Hothead self-publishes its titles with a focus on offering accessible game play and episodic content through digital distribution. Visit www.hotheadgames.com for more information.

About Penny Arcade
Equal parts online comic and commentary, Penny Arcade (http://www.penny-arcade.com) keeps its finger on the pulse of the gaming industry, prompting conversation and controversy alike. What started as a hobby in 1998 for Jerry "Tycho" Holkins and Mike "Gabe" Krahulik has grown into an online phenomenon serving over 55 million page views a month to millions of readers worldwide. In addition to the comic strip, Penny Arcade has expanded its reach to include merchandise, the annual PAX gaming festival (www.pennyarcadeexpo.com), a video game and management of Child's Play (www.childsplaycharity.org), a gamer-driven charity for children that spans the globe.