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Take-Two rubbishes new EA offer

Strauss Zelnick reiterates the Take-Two board's position, and notes "expressions of interest" from additional parties

Following EA's new tender offer for Take-Two shares, made earlier today in response to yesterday's Take-Two stockholder meeting, Strauss Zelnick has criticised once again EA's actions.

"The minuscule number of shares tendered, as well as the strong vote in favour of the proposals presented at our annual meeting, offer indisputable evidence that our stockholders regard our efforts to enhance Take-Two's stockholder value as superior to the EA offer," said the Take-Two chairman in a statement.

"This is the same highly conditional proposal that EA offered Take-Two stockholders on March 13, 2008, which our Board of Directors thoroughly reviewed and unanimously determined to be inadequate and contrary to the best interests of Take-Two's stockholders.

"Take-Two's Board of Directors has maintained from the beginning, and continues to believe, that EA's proposal undervalues our Company. It undervalued the company at USD 26 per share, and it certainly undervalues Take-Two at USD 25.74."

EA had accumulated 6.4 million shares, roughly equivalent to around 8.3 per cent, by the time of the meeting yesterday, with the new lower offer in response, as promised, to stockholders voting for the award of a further 1.5 million shares to ZelnickMedia.

"EA's highly conditional offer fails to compensate our stockholders for our exceptional portfolio of intellectual property, world-class creative resources, and our successful revitalization initiatives," Zelnick continued. "The recommendation of our Board of Directors that stockholders not tender their shares to EA remains unchanged.

"The Board is committed to maximizing stockholder value and continues to explore all strategic alternatives, including a business combination with third parties, remaining independent, or other strategic or financial alternatives.

"We have received expressions of interest from a number of interested parties and look forward to beginning formal discussions following the launch of Grand Theft Auto IV.

"The Board continues to believe that we will be best positioned, from the perspective of both value and timing, to move forward at that time. We are confident in the significant growth potential of Take-Two and in the unique value of our business given our strong position in this dynamic industry," he added.

EA's revised offer will remain open until May 16, two and a half weeks after the release of Grand Theft Auto IV.

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