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Atari Announces Popular Flash Game N+ for Handhelds

Cult Hit "N" Being Updated for Nintendo DS(TM) and PSP(R) System

NEW YORK, June 4: Atari, Inc. (Nasdaq: ATAR) one of the world's most recognized brands and a third-party video game publisher, today announced the development of N+, the successor to the award-winning and beloved flash ninja game N. Created by Metanet and developed by SilverBirch Studios, N+ will leap onto the Nintendo DS TM and the PSP ® (PlayStation ® Portable) system in November 2007.

Adding to the successful formula that made N a hit online, N+ will offer equal parts platformer and action gameplay with incredibly fluid animation, fast action, amazing acrobatics and instant playability. N+ embodies the same brisk pick-up-and-play style that has endeared gamers worldwide and improves on the adored flash game with downloadable content, multiplayer components and a built-in level editor.

"N+ takes all the great elements of the flash game, from the amazing acrobatics to the simple-but-fast gameplay, and adds an impressive set of new features," said Stephen Baer, senior global product manager, Atari, Inc. "With full support for wireless multiplayer, cartridge sharing ability, downloadable content and community leader boards, gamers will be able to settle, once and for all, who is the greatest ninja."

New features like cooperative and competitive multiplayer modes and level sharing over the ad-hoc PSP system and wireless Nintendo DS connections will expand upon the gameplay possibilities that have made original flash game a sensation. Complimenting the game's 'old-school' feel, the control layout uses directional buttons and one of the face buttons to jump and move. With the built-in level editor, players can use the stylus to design maps and share them with friends or the world and downloadable content will continue to add exciting elements long after the game's initial release.

For additional information about N+ and other Atari titles, please visit www.atari.com.

About Atari

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a 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 The Matrix TM (Enter The Matrix and The Matrix: Path of Neo) and Test Drive ® ; and mass-market and children's franchises such as Dragon Ball Z ® . Atari, Inc. is a majority-owned subsidiary of France- based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), one of the largest interactive games publisher in Europe. For more information, visit www.atari.com.

About SilverBirch Inc.

Toronto-based SilverBirch Inc. is a fully integrated developer, publisher and distributor of high quality interactive media content and, through its SilverBirch Studios division, is a multi-platform video game developer. The company also provides mobile marketing and direct-to-consumer mobile content through its SilverBirch Mobile division. SilverBirch plans to launch an English-language MMORPG game (massive multiplayer online role-playing game) called Metin 2 (see www.metin2.us) this summer. For more information, please visit www.silverbirchstudios.com and www.silverbirchmobile.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; 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.

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.

All rights reserved. ATARI and the ATARI logo are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

"PlayStation", "PS" Family logo and "PSP" are registered trademarks of Sony Computer Entertainment Inc. Internet connection and Memory Stick Duo TM may be required (sold separately).

TM , ® and Nintendo DS are trademarks of Nintendo. ® 2004 Nintendo. All other trademarks are the property of their respective owners.

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