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Atari Unveils Groundbreaking GamersFirst Program

NEW YORK, NY - May 10, 2006 - Atari, Inc. (Nasdaq: ATAR), one of the world's most recognized brands and leading third-party video game publisher, today announced one of the industry's most aggressive pricing programs, GamersFirst (http://us.atari.com/gamersfirst). The two-fold, consumer-oriented program will begin on June 1st at participating retailers and will include a new price point of $19.99 on all existing console titles for PlayStation®2 computer entertainment system, Xbox video game and entertainment system from Microsoft, Nintendo GameCube, and Game Boy® Advance as well as all existing Windows titles (excluding the recently launched Dungeons & Dragons Online). Additionally, all Windows titles included in the program will be available for immediate download at Valve and Direct2Drive, also for $19.99. Titles offered in the on-going GamersFirst program include fan favorites such as Dragon Ball Z®: Budokai Tenkaichi, Driver: Parallel Lines, Marc Ecko's Getting Up: Contents Under Pressure, and the award-winning Indigo Prophecy.

"Atari is committed to providing great gaming experiences to the largest possible audience," said Atari, Inc. Chief Executive Officer Bruno Bonnell. "With our GamersFirst program, Atari is taking another step forward to make our unique catalogue of games more accessible to everyone. We are proud to announce our unique GamersFirst $19.99 program and reaffirm our commitment to consumers."

For more information about GamersFirst, please visit http://us.atari.com/gamersfirst.

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 DRIVER, The Matrix (Enter The Matrix and The Matrix: Path of Neo), and Test Drive®; and mass-market and children's franchises such as Nickelodeon's Blue's Clues and Dora the Explorer, 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.

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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.

® 2006, Atari, Inc. All rights reserved. ATARI, the ATARI logo, and classic Atari game titles and logos are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

""PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc

Game Boy Advance and Nintendo DS are trademarks of Nintendo. ® 2004 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.

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