Infogrames Buys Humongous: Game News

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Infogrames Buys Humongous

(Press Release)

NEW YORK, Aug. 26 /PRNewswire-FirstCall/ -- Atari, Inc. (Nasdaq: ATAR), a leader in interactive entertainment, today announced the sale of its Humongous Entertainment studio to Infogrames Entertainment SA ("IESA"), the Company's majority stockholder, for approximately $10.3 million.

The Humongous assets consist primarily of intellectual property, existing inventory and license rights. Approximately $2 million of the purchase price represents pre-payment of certain future costs Atari will incur related to platform royalty advances, manufacturing costs and milestone payments. Additionally, Atari has been granted exclusive distribution rights for Humongous products in the U.S., Canada and Mexico through at least March 31, 2006.

"We continue to execute our previously articulated strategic initiatives and strengthen Atari's financial position moving forward," stated Bruno Bonnell, Chairman, CEO and Chief Creative Officer of Atari. "As we streamline the operations of the Company and focus on cost controls, we remain committed to developing unique high-quality titles that appeal to both mass-consumers as well as hard-core gamers. This transaction substantially contributes to our resources for the launch of our largest titles in the holiday season and further enhances our capacity to develop new titles, ultimately enhancing shareholder value."

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About Atari

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining franchises such as DRIVER(TM), The Matrix(TM), Stuntman(TM) and Test Drive(R); and mass-market and children's franchises such as Nickelodeon's Blue's Clues(TM) and Dora the Explorer(TM), and Dragon

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Ball Z(R). Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit http://www.atari.com.