Independent video game developer Chair Entertainment has announced that it has signed an exclusive deal with Epic Games to use the Unreal Engine 3 for all its present and upcoming projects. The deal will cover all games Chair Entertainment develops for the PC, PS3 and Xbox 360 gaming platforms.

The first game to be released under the new agreement will be Undertow, an Xbox Live Arcade title slated to go live all over the world this summer. Undertow features a 15-level campaign for single player or co-op. The game also supports multiplayer for up to 16 players. Pretty impressive considering Undertow is reportedly just 50MB.

Here's what Epic Games vice president Mark Rein said about the deal:

We love working with cool independent studios like Chair that are truly focused on delivering value to gamers and creating experiences that break new boundaries in gameplay and creativity.

Sure, we love working with the big developers and publishers too, but there’s something really satisfying about seeing a young company with great talent doing some awesome stuff with our technology. Undertow is just the first great game you’ll see from these guys – prepare to be wowed some more.