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Activision Value and Krome Studios Sign Co-Publishling Agreement for Next Installment in Popular TY the Tasmanian Tiger Series

Third Installment in Unique Australian 3-D Character Action Series in Development For Fall 2005 Release; to be Unveiled at E3 2005 in Krome Studios' West Hall Booth #2240

BRISBANE, Australia, May 12, 2005: Activision Value Publishing, a wholly owned subsidiary of Activision, Inc. (Nasdaq:ATVI), and Krome Studios, Australia's largest game company and a leading worldwide independent developer, announce a co-publishing agreement for the third installment in the best-selling TY the Tasmanian TigerTM series. TY the Tasmanian Tiger 3(a) follows the heels of its award-winning predecessors which have sold upward of two million units to date. Currently in development at Krome Studios, the game will be available for the Sony PlayStation® 2, Microsoft Xbox®, Nintendo GameCubeTM and GameBoyTM Advance in fall 2005.

"We are very excited about the new found partnership with Krome Studios," states Dave Oxford, General Manager, Activision Value Publishing, Inc. "The partnership between Activision Value, with its dedication to providing customers with great games, and Krome Studios, which produces award winning content, should result in great gains for both companies."

The game will continue to thrill, excite and immerse players while still retaining the good-natured humor and kid-friendly fun the series is best known for and injects a fresh, new appeal that caters to the masses. Like its predecessors, TY the Tasmanian Tiger 3 will feature a unique array of interesting native animals inspired by the Australian Outback including the loveable TY, who is based on the thought-to-be-extinct Tasmanian tiger.

"We are pleased to have found such a fantastic and enthusiastic partner in Activision," says CEO and Co-founder Robert Walsh. "TY the Tasmanian Tiger series is a well-known and loved property so having their support and prowess will help to further champion and heighten the awareness of our yellow furry hero in the marketplace."

In the game, TY and his mates face their biggest challenge yet -- an otherworldly invasion by an ancient evil known as the Quinkan. With Bush Rescue disbanded, TY begins the challenging task of reforming his team and leading the fight against the dark oppressors. In this next chapter, players will embark on a series of engaging missions and challenges filled with new and upgradeable weapons -- including his trade mark boomerang collection -- and vehicles. TY's new adventures will take him into a shadowy world full of dangerous creatures, and will see him face bigger and badder enemies.

Krome Studios will unveil the game at the upcoming Electronic Entertainment Expo (E3) 2005 held at the Los Angeles Convention Center from May 18 - 20. Team members will be on-site to demo and discuss the game in West Hall #2240 (Krome Studios will be featured in the Australian Gaming area).

TY the Tasmanian Tiger 3 will offer increased multi-player support and will feature several technological upgrades to further enhance the overall gameplay experience. More information on the game can be accessed at www.kromestudios.com.

(a) working title

About Krome Studios

Krome Studios is one of the leading independent developers in the world and the largest game development studio in Australia with more than 100 employees. Founded in 1999, the studio is best known for developing the TY the Tasmanian Tiger series, which has sold close to two million units worldwide and is the best-selling Australian game of all time. Krome Studios has shipped more than a dozen titles, including the TY the Tasmanian Tiger series, King Arthur, Jimmy Neutron: Jet Fusion , Sunny Garcia Surfing, Extremely Goofy Skateboarding, Barbie Beach Vacation and Championship Surfer, to name a few. The official homepage of Krome Studios is www.kromestudios.com.

About Activision Value Publishing, Inc.

Headquartered in Minneapolis, MN, Activision Publishing, Inc., a wholly-owned subsidiary of Activision, Inc. (Nasdaq:ATVI), specializes in developing interactive entertainment software for the PC systems and all other video game platforms worldwide. For more information about Activision Value Publishing, visit the company's web site at www.activisionvalue.com or www.activision.com.

TY the Tasmanian Tiger, Bush Rescue and KROME Studios are trademarks of KROME Studios Pty, Ltd. PlayStation is a registered trademark of Sony Computer Entertainment Inc. TM, ®, Nintendo GameCube and Game Boy Advance are trademarks of Nintendo. Microsoft and Xbox are registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or other countries. All other trademarks are the property of their respective owners.

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