Recognizing the strong worldwide awareness of the Diplomacy and Squad Leader brands, Paradox Entertainment AB today announced that it has licensed the worldwide rights from Atari, Inc. (Nasdaq: ATAR) and Hasbro, Inc. (NYSE:HAS) to develop and publish new PC games based on the successful Avalon Hill board and video games. The Avalon Hill line of games is managed by Hasbro's subsidiary, Wizards of the Coast.

Hailed as two of the best known strategy game brands in the world, Diplomacy and Squad Leader have attracted millions of players in their previous editions. Internal teams at Paradox, known for specializing in the creation of strategy games, will develop the new PC games. Past Paradox projects include the award-winning Europa Universalis, Hearts of Iron and Crusader Kings.

"We will be working closely with Atari and Wizards of the Coast to make sure we maximize the potential these brands have. We feel that Paradox is the right partner to develop the PC Games these brands and their fans deserve", says Theodore Bergquist, CEO of Paradox Entertainment.