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ENGINELICENSINGinformation sheet

The Source™ engine technology, the same usedto power Half-Life® 2, is now available forlicense by third party developers. Sourceprovides major enhancements in several keyareas including character animation, advancedAI, real-world physics, and shader-basedrendering.

Source's animation system brings expressivecharacters to life with an unlimited palette offacial expressions that allow them to convey amessage without having to say a word. Inaddition, these characters possess the industry'smost advanced artificial intelligence, makingthem extremely capable allies and foes.

These characters populate beautifully renderedand physically simulated worlds. Nextgeneration applications will require the use of aphysics simulation to provide realistic andresponsive environments. This will allowdevelopers to break from authoring the pre-

scripted events featured in previous generationsof games, and open the door for the creation ofcompletely new styles of play.

Source contains robust networking code,providing support for 32-player LAN andInternet games, and includes a complete toolsetfor level design, character animation, democreation, and more.

PricingSource offers the most advanced features, tools,and support at extremely competitively prices.Discussed under NDA.

For more information, please contactsourceengine@valvesoftware.com.

INTRODUCTION

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Water refraction, High-Dynamic Range lighting, and advanced AI greatly enhance visual fidelity and believeability in Source.

RENDERERVersion 2.0b (and below) DirectXshaders, bump mapping, LOD onmodels and world

Author shaders with HLSL

Cube and environment mapping

Dynamic lights, vertex lighting andlight maps, many light typesincluding flickering, pulsing etc.

High-Dynamic Range lighting

Water with refraction and fresneleffects

Advanced particle system that canemit sprites or models

Projected shadows allow for a largenumber of characters per scene

Intelligent graphics caching system

Occluder entities for visibilityblocking

Indoor/Outdoor environments

· Deformable terrain· 3D skyboxes extend the horizonand add parallax on distantobjects

· Dynamically rendered organics(grass, trees etc)

Subdivision surfaces, diffuse &specular bump maps

Real-time radiosity lighting

Effects include but are not limitedto: particles, beams, volumetricsmoke, sparks, blood, environmentaleffects like fog and rain

Scalability

· Dx6-Dx9 hardware supported

MATERIALS SYSTEMInstead of traditional textures,Source defines sets of materialsthat specify what the object is madefrom and the texture used for thatobject. A material specifies how anobject will ffrraaccttuurree,, ssoouunndd wwhheennddrraaggggeedd aaccrroossss aannootthheerr ssuurrffaaccee oorrbbrrookkeenn, aass wweellll aass tthhee oobbjjeecctt’’ss mmaassssaanndd bbuuooyyaannccyy. This system is muchmore flexible than other textureonly based systems.

Materials can also interact withobjects or NPCs. For instance, mudor ice can make sounds and causevehicles to slide/lose traction.

SOURCE™ ENGINE FEATURES

Create expansive and highly-detailed outdoor environments.

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Source enables DX9 shaders written in HLSL

BUMPMAPPING

MONITORS +CAMERAS

DISPLACEMENTMAPS WITHBUMPMAPPING

REFLECTION +REFRACTION

VOLUMETRICEFFECTS

PARTICLESYSTEM

STATICPROPS

DETAILPROPS

MULTIPLAYER NETWORK CODE

Time and gamer tested by millionsof gamers around the world

Support for both LAN basedmultiplayer and Internet basedmultiplayer games

Prediction analysis forinterpolating collision/hit detection

Optimizations for high-latency,high-packet loss 56k connections

ADVANCED CHARACTERSDetailed and believable charactersprovide intelligent playerinteraction

Realistic eyes

· Focus on player/object, notsimply parallel views

· Proper eye "bulge" for realisticeye reflections

Simulated musculature providesoutstanding emotions, speech andbody language

Language independent speech,characters can naturally speak inmany languages

Skeletal/bone system for animation

Layered animation system cansynthesize complex animations outof several pieces

PHYSICSMore responsive world withrealistic interactions

Sounds & graphics follow fromphysics

AI characters can interact withphysically simulated objects

World-class machines, constraintsystems and ragdoll physics

Ropes and cables move realisticallywhen bumped or hit by an object

Can be controlled by level design

Kinematic animated bone followers

Custom procedural physics controllers

Vehicles

· Wheels slip and skid

· Realistic suspensions

· Tunable parameters:Horsepower, gearing, maxspeed, shift speed, tire material,tire friction, springtension/dampening, etc.

· Multiple players in a vehicle

· Hovercraft

Players and non-player characters are physically simulated, and possess the ability to interact with objects and vehicles.

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SOURCETM ENGINE FEATURES (Cont’d)

ADVANCED AIGraphical entity placement allowslevel designers to quickly controlthe interactive gaming environment.

Sophisticated navigation:characters that run, fly, jump,crouch, climb stairs and ladders,and burrow underground

Senses things using sight, sound,smell

Determines relationships such asfriend/foe status of other entities

Battle capabilities allow squads ofAI characters to operate together,know when to advance, retreat, laycover fire, etc.

Provides for intelligent characterinteraction during non-combatscenes.

SOUND5.1 surround sound, 4 speakersurround

High-quality 3D spatialization

Custom software DSP

Automatic DSP based onenvironmental geometry

ADPCM decompression

16-bit 44KHz, stereo wave datawith all features

MP3 decompression (requires Mileslicense)

Support for audio streaming on anywave

Real-time wave file stitching

Pre-authored Doppler effectencoded waves

Pre-authored distance variantencoded waves

UIServer browser - Displays all activegame servers and allows a player tochoose which one to participate on.Players can filter and sort serverlists in order to speed up the displayand selection of a server.

Friends instant messenger - Allowsplayers to message each other bothin and out of the game as well asjoin friends in existing games. Nomore confusion about what serveryour friends are on, you can easilyjoin with this feature.

VGUI - Valve's custom GUIinterface mimics most windowcontrols but is rendered using theSource engine for both in-game andout-of-game user interfaceuniformity. It is platformindependent and is UUnniiccooddeeccoommpplliiaanntt.

Source’s advanced AI create intelligent, life-like characters. Source includes a powerful suite of sound technologies.

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SOURCETM ENGINE FEATURES (Cont’d)

PROGRAMMINGAll code written in C/C++ usingVisual Studio 7.1. Easily andquickly derive new entities fromexisting base classes.

Internal context sensitiveperformance monitoring system

Graphics performance measurementtools built into the engine

Modular code design (via DLL's)allows swapping out of corecomponents for easy upgrading orcode replacement

Dx9 shaders all written in HighLevel Shading Language (HLSL).

Allows custom HLSL shaders

TOOLSFaceposer

· Facial expression tool used tocraft speech and emotions

Valve Hammer Editor®

· WYSIWYG World editor

· Create world brushes

· Terrain editor

· Place detailed world models andAI NPCs

· Set navigation points/paths forNPCs

· Place triggers, clip brushes,logic etc.

· Allows level designer to hook upI/O between entities to controlAI within the game

· Includes real-time lighting

Half-Life® Model Viewer· Full model previewer with

lighting

· Rotate models in any direction

· Setup hit boxes

· View physics hull

· View normals

· Wireframe, shaded or texturedview modes

Studiomdl· Model compiler

Vbsp, Vrad, Vvis, VMPI· Map compilation tools (bsp,lighting and visibility)

· VMPI - distributed compilationtool allowing level compiles tobe spread across many pc'sgreatly reducing compile times

Exporters· XSI, Max and Maya .smdexporters for exporting 3Dmodels

Faceposer allows you to direct each actor in every scene.

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SOURCETM ENGINE FEATURES (Cont’d)

Build and preview new worlds within the Valve Hammer Editor ®.