Atari Announces Corporate Action Plan
Feb 17, 2006: Atari, Inc. (Nasdaq: ATAR), a leader in interactive entertainment, today announced the implementation of its corporate action plan.
This announcement follows the company's statement in early February that it would act on cost control, dispose of non-core assets and place a stronger emphasis on external development studios. The Company announced today the restructuring of its operations, which will result in a worldwide workforce reduction of approximately 20%.
"Today's decisive action will provide us with the flexibility necessary in a changing business environment," said Bruno Bonnell, Chairman and Chief Executive Officer. "Adjusting our cost structure is a significant first step and demonstrates our commitment to restoring shareholder value."
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 DRIVERTM, The MatrixTM (Enter The Matrix and The Matrix: Path of Neo), StuntmanTM and Test Drive®; and mass-market and children's franchises such as Nickelodeon's Blue's CluesTM and Dora the ExplorerTM, and Dragon Ball Z®. 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.
Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, GameStop and EB Games; delays in product development and related product release schedules; inability to secure capital; loss of our credit facility; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings, including our Annual Report on Form 10-K for the year ended March 31, 2005 and our quarterly reports on Form 10-Q.
The Company undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in the Company's expectations.
SOURCE Atari, Inc.
Ryan Barr of Atari, Inc., +1-212-726-6996, ryan.barr@atari.com