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Atari Inc. Expands North American Product Line-Up Through Exclusive Deal With 1C Company

Atari Inks Distribution Deal with Largest Eastern European and Russian Publisher

NEW YORK, April 24: Atari, Inc. (Nasdaq: ATAR), one of the world's most recognized brands and a third-party video game publisher, today announced the company has entered into a long-term exclusive distribution agreement with 1C Company, the leading publisher and distributor of computer games in Russia, Eastern and Central Europe.

Under this new agreement, Atari has the exclusive first rights to distribute and co-publish upcoming 1C titles throughout North America, including online distribution. The deal applies to all video game platforms including personal computers, home gaming consoles, handheld game systems, online formats, and mobile devices. The first games to be brought to the US market will be released later this year.

"Developers in Russia and Eastern Europe market are burgeoning with a slew of innovative and engaging games. 1C has demonstrated the special ability to source, develop and nurture these products," said Robert Stevenson, VP Business Development and Third Party at Atari. "Leveraging our strength in software distribution and our relationship with 1C, we believe that we will offer our retail partners a wider-array of products that appeal to the broad tastes of gamers in North America."

"The Atari brand has always been synonymous with innovation, creativity and reach," said Nikolay Baryshnikov, International Sales Director, 1C Company. "With Atari's strong distribution channels, 1C's games will reach new audiences and further forge a more global gaming community."

About 1C Company

1C Company specializes in distribution, publishing and development of interactive entertainment products and business software. Founded in 1991, 1C has become the leading publisher and distributor of computer games in Eastern and Central Europe. 1C Company is widely acknowledged as a game developer and has several internal studios. Internal developments of 1C include IL-2 Sturmovik, IL-2 Sturmovik: Forgotten Battles, Aces Expansion Pack and Pacific Fighters. 1C Company works as a publisher and producer with over 30 independent development studios and has produced over 100 projects for PC and consoles.

About Atari, Inc.

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre- defining franchises such as Test Drive ® ; and mass-market and children's franchises such Dragon Ball Z ® . Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), an 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, and GameStop; 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.

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

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