Earlier this week, JoWooD announced that due to the game not meeting quality
standards, Stargate SG-1: The Alliance was no longer being developed by
Perception. Well, Perception sees things a bit differently, and has said
development of the game continues uninterrupted.  In addition, they say that JoWooD
has nothing to do with the Stargate license and they're going to get the pants
sued off of them (not in those exact terms). I'd say this is going to get ugly,
but it already has. Below is the statement released by Perception Pty Ltd:

Perception Pty Ltd would like to rectify certain statements that have been
made to the press by JoWooD Productions. To be clear, Perception is the official
licensee of MGM on Stargate SG-1: The Alliance. Any suggestion that JoWooD has
rights to Stargate SG-1: The Alliance upon termination of the contract is
incorrect and not based on commercial or legal fact.

Development on the game will continue uninterrupted at Perception's Sydney
studio. Perception is committed to giving fans the best gaming experience

Ben Lenzo, CEO of Perception said, "We view it as unfortunate that JoWooD would
elect to make such misleading and libelous comments to the media and the
marketplace. Over the last 9 months, JoWooD has openly acknowledged being in
breach of contract in a number of areas including many legal and confidentiality
breaches as well as several financial defaults for work performed by Perception
and accepted by JoWooD."

Perception has tried to work with JoWooD to resolve these issues for months but
to no avail. This resulted in several breach notices being served on JoWooD,
giving them ample time to remedy. As these newest issues had not been resolved
by the August 5th 2005, Perception gave notice that all outstanding issues would
need to be resolved by Monday August 8th 2005, or Perception would terminate its
contract with JoWooD.

"It's disappointing to hear of this so called termination via the press on the
basis of a "get in first" tactic. This further suggests that JoWooD do not
understand the terms of the contract. We are not surprised by their behavior or
lack of appreciation for the goodwill Perception has afforded JoWooD on many
occasions," said Lenzo

Perception has begun personal prosecution proceedings against both the CEO,
Albert Seidl and the Chairman of the Supervisory Board of JoWooD, Andreas Rudas,
for the libelous comments made in their press release and will use all legal
remedies available to it for the substantial monies owed to it by JoWooD.

"Perception will not allow its name to be tarnished in such a manner and view
such matters extremely seriously and will always protect the reputation of our
staff, our products, licensing partners and the company."

Perception will not discuss any further the outstanding issues with JoWooD in
public as legal action is underway. We look forward to the release of Stargate
SG-1: The Alliance.