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Atari Unveils Electrifying E3 2006 Line-Up

Showcasing Nine Innovative, Diverse Titles

NEW YORK, May 5: Atari, Inc. (Nasdaq: ATAR), one of the world's most recognized brands, today announced the complete line-up of video games the Company will showcase during Electronic Entertainment Expo (E3), the video game industry's largest trade show and exhibition in Los Angeles, May 10-12. The Company's titles range in genres and are from some of the world's best-known franchises including Dragon Ball Z®, Test Drive® Unlimited, Alone in the Dark, and DUNGEONS & DRAGONS®. The Company is charging forward with a robust line-up of next-generation console and handheld games with a focus on innovative and compelling gameplay.

"As the Atari brand has withstood the test of time, so does the appeal of many of our games and franchises," said Atari, Inc. Chief Executive Officer Bruno Bonnell. "We continue to reach and surpass milestones, such as the ten- millionth mark of Dragon Ball Z game sales, and redefining genres we originated, such as Alone in the Dark's horror survival and Test Drive Unlimited's Massively Open Online Racing (M.O.O.R.TM). Atari continues to move forward and seek out groundbreaking, imaginative and entertaining properties like the underground based, street smart HOT PXL. Evident as part of our E3 line-up, these and other games are all part of the Company's evolution and continued focus on gameplay."

Following is the list of Atari's products that will be showcased at E3 this year. The Atari booth is located at Petree Hall #4003:

Alone in the Dark (Xbox 360TM video game and entertainment system from Microsoft and Windows platform)

The original Alone in the Dark is the video game that launched horror survival gaming and set the standard within the genre. The next-generation of Alone in the Dark returns with a heart-stopping survival experience realized through the use of state-of-the-art real-time physics and unprecedented environmental interaction. Delivering an exhilarating action-orientated experience within a highly detailed, open environment, Alone in the Dark is set to take the lead for innovation and excellence within the genre. Alone in the Dark is in development by Eden Games, the second largest game development studio in France and a wholly owned subsidiary of Infogrames Entertainment SA.

Arthur and the Minimoys (PlayStation®2 computer entertainment system, PSPTM (PlayStation®Portable) system, Nintendo DSTM, Game Boy® Advance and Windows)

Directly inspired by world famous film director and writer Luc Besson's upcoming animated film of the same name, the Arthur and the Minimoys* game will follow the film's storyline and feature eye-popping graphics and technical innovations. The game allows players to relive the fantastic adventure of young Arthur and his two pals, princess Selenia and her brother Betameche, in their mission to save the Minimoys' world from destruction. Set to time with The Weinstein Company theatrical release of the movie in North America, Arthur and the Minimoys game is currently in development by Lyon-and Paris-based Etranges Libellules, creator of several successful animated games, including Asterix XXL and Kirikou. The Nintendo DS game is being developed by Dreamon, and the Nintendo Game Boy Advance version by Mystic.

BattleZone (PSP system)

BattleZone is the modern update to the 1980 classic arcade game. Set in futuristic international military environments, BattleZone puts players in control of highly maneuverable hover tanks, challenging them in close combat scenarios against their rivals with relentless onslaughts of quick, action- oriented battles. BattleZone for the PSP system is being developed by Paradigm Entertainment, a wholly owned subsidiary of Infogrames Entertainment SA.

DUNGEONS & DRAGONS®: TacticsTM
(PSP system)

DUNGEONS & DRAGONS®: TacticsTM is the first time the highly-coveted D&D® license has ever graced a next-generation portable system. D&D®: Tactics* authentically utilizes the D&D 3.5 rule-set created by Wizards of the Coast and allows players to take a party of six adventurers into a wide variety of dangerous environments to experience deep and exciting turn-based action. In development by Kuju Entertainment, D&D: Tactics will take full advantage of the PSP system's wireless capability and offer gamers a multiplayer mode.

Dragon Ball Z®: Budokai Tenkaichi 2 (PlayStation®2 and Nintendo Wii)

Dragon Ball Z: Budokai Tenkaichi 2 is the sequel to Dragon Ball Z: Budokai Tenkaichi, the top-selling DBZ game of 2005. Combining action, fighting and light role-playing game (RPG) elements, Dragon Ball Z: Budokai Tenkaichi 2 will send players into a rich story mode that spans the entire Dragon Ball®, DBZ, and Dragon Ball GT® series. The game takes the acrobatic and intense 3D flying and fighting dynamic made popular in last year's hit to a whole new level with over 100 playable characters, 15 vast and vibrant 3D destructible environments, and nine different game modes, including intense single and multiplayer battles. Dragon Ball Z: Budokai Tenkaichi 2 is being developed by NAMCO BANDAI Games Inc. / Spike.

HOT PXL (PSP system)

HOT PXL*, the ingenious and hip new title, brings fast and furious bite-size gaming to the masses. HOT PXL comprises more than 200 deviously crafted mini-games based on a unique and original story premise that draws inspiration from street culture and the digital lifestyle -- whether it's blasting through an old-school style video game, busting tricks on a skateboard or a BMX, stage-diving at a concert, or just trying to cross a busy digital street. The game's web site, www.hotpxl.com, will serve as an integral part of the experience and the community. HOT PXL is being developed by zSlide.

Neverwinter NightsTM 2 (Windows)

Neverwinter NightsTM 2 is the sequel to the best-selling and genre-defining role-playing game (RPG) set in the popular Dungeons & Dragons® Forgotten RealmsTM universe created by Wizards of the Coast. The game's story picks up years after a war waged between Luskan and Neverwinter. The peace that was restored is at risk as tension mounts between the mighty city-states. Unnoticed, a greater danger stalks the City of Skilled Hands. Unbeknownst to the denizens of the North, deep in the Mere of Dead Men, dark forces from across the Realms have been rallied under the banner of a legendary evil. If left unchallenged, all of the North is doomed to fall under its power. Even in this darkest hour, hope remains. A mysterious relic is borne to Neverwinter in the hands of a lone hero so that its secrets may be unlocked -- secrets that carry the fate of all the North. So begins an epic tale of shattered alliances, noble acts and dark deeds to be told across the Realms for generations to come. Neverwinter Nights 2, developed by Obsidian Entertainment, will include a new and improved robust toolset that allows for the ultimate adventure creation and for the story of Neverwinter to continue.

Super DBZ® (PlayStation®2)

Super DBZ® is a new highly intense DBZ® fighting experience unlike any other Dragon Ball Z game. Featuring an all-new and more complex DBZ fighting system with unique fighting combos for all 18 characters, Super DBZ promises fans and gamers explosive on-screen environmental damage. Super DBZ is in development by NAMCO BANDAI Games Inc. / Crafts & Meister, and including the creators of the acclaimed Street Fighter II arcade game.

Test Drive® Unlimited (Xbox 360 and Windows)

Packed with the world's most luxurious vehicles, more than one thousand miles of open Hawaiian roads, a challenging single player game and a host of online options, Test Drive Unlimited is M.O.O.R.TM: Massively Open Online Racing - the ultimate online automotive gaming experience. The action in Test Drive Unlimited takes place on the open roads spanning the Hawaiian island of Oahu. Boasting huge online content, racers around the world can challenge others to join them in the virtual paradise of the game's persistent online racing world. Players will engage in online challenges, and build communities by creating or joining exclusive members clubs to talk, trade cars, and race with other like-minded and similarly-skilled drivers in one of the most comprehensive online racing experiences to date. Test Drive Unlimited is in development by Eden Games.

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 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, as amended. 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, the ATARI logo, and classic Atari game titles and logos are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

"PSP" is a trademark and "PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Internet connection and Memory Stick DuoTM may be required (sold separately).

Online play requires internet connection and Memory Card (8MB) (for PlayStation 2) (each sold separately). The Online icon is a trademark of Sony Computer Entertainment America Inc.

Game Boy Advance and Nintendo DS are trademarks of Nintendo.

TM, ® and DS are trademarks of Nintendo.

Xbox is a registered trademark of Microsoft Corporation in the United States and/or other countries.

All other trademarks are the property of their respective owners.

Forgotten Realms, Dungeons & Dragons, Neverwinter Nights and Magic the Gathering are trademarks of Wizards of the Coast in the USA and other countries.

All other trademarks are the property of their respective owners.

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