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Neverwinter Nights™ 2 Companions Take Center Stage At Electronic Entertainment Expo (E3)

Atari Reveals Innovative New Features for Neverwinter Nights 2

LOS ANGELES, CA - May 10, 2006 - Atari, Inc (Nasdaq: ATAR) and Obsidian Entertainment today disclosed exciting new details surrounding the popular companion party system in the highly-anticipated Neverwinter Nights 2. Neverwinter Nights 2 is set in the DUNGEONS & DRAGONS® Forgotten Realms® universe created by Wizards of the Coast, a subsidiary of Hasbro, Inc. (NYSE: HAS), and will transport players back to the embattled city of Neverwinter. DUNGEONS & DRAGONS is under license from the Hasbro Properties Group, the intellectual property development arm of Hasbro.

Developed by Obsidian Entertainment, Neverwinter Nights 2 will feature more than 10 new companions that players will encounter and join in their ongoing adventures in the lands of Faerun. Players will be able to select up to three additional companions to adventure with at any particular time. Along with the larger party size comes increased companion complexity in all aspects from enhanced usefulness and combat effectiveness to dramatically improved personalities, dialogue and story background.

In addition, companions in Neverwinter Nights 2 take full advantage of the game's complex influence system, which dramatically alters the player characters' alignment and the world's reaction to the player based upon the actions and choices made during the course of game play. Just as the world will change based upon the player's actions, companions will also react directly to the player characters' alignment and the decisions they make. The more a companion trusts the player the more likely it will share its history, fears and even secrets. Likewise, the more divergent the player's point of view is from a companion, the greater the potential for loss of influence and, in some cases, may even lead to the companion abandoning the player during gameplay.

"Companions in Neverwinter Nights 2 are much more than just a simple collection of statistics and abilities. We wanted companions to provide the player with real value, insight into the game's storyline as well as a source of additional entertainment," said Feargus Urquhart, CEO of Obsidian Entertainment. "Allowing more companions to accompany the player, the addition of companion control, much more robust companion storylines and interactions, not to mention the romance possibilities, are all sure to make companions a very popular part of Neverwinter Nights 2."

In Neverwinter Nights 2, players will also have the ability to select and control companion actions, including guiding their spell selections, attacks and other special abilities. Players can also simply allow each companion's advanced artificial intelligence to take over, which will ensure an appropriate response to any given situation. In addition, each companion in Neverwinter Nights 2 has also been designed to fill both a role-playing personality role as well as a specific class support role. No matter what class a player chooses to start with, the selection of available companions will allow players to balance out their party to reflect the style of play they prefer.

Some of the first companions players will come across in Neverwinter Nights 2 include:

Khelgar Ironfist (Chaotic Good, Dwarf, Fighter) -- Khelgar is a good-natured dwarf with a love of the finer things in life. He's strong and tough, even by dwarf standards, and developed a fearsome reputation as a brawler. Khelgar is heading to the city of Neverwinter, to find a monastic order that has opened their doors to anyone who wishes to learnKhelgar is going to make them rue that policy quickly.

Neeshka (Neutral, Tiefling, Rogue) -- Part demon and part human, Neeshka has had a tough life. She has been raised most of her life as a ward of the Church of Helm, and from childhood to today she's been in one sort of trouble or another. Tieflings are often noble figures who fight to redeem themselves despite people's initial prejudices. However, Neeshka doesn't have a heart of gold, or some inner core of virtue, she's just trouble at heart. She's a cute sort of trouble, though. She fuels the perception of Tieflings as worrisome imps good for nothing but headaches.

Elanee (Neutral Good, Wood Elf, Druid) -- A child of the forest, fickle and fae - Elanee is a wood elf druid who watches over the Mere of Dead Men. Elanee is not quite of this world, and is more at home in the realm of forests and mires than she ever will be in civilization. She has tremendous courage and a fiery temper, as well. She views the world with a strange newness - which is at odds with her often wise counsel. She also sees deeper into people than they suspect.

The Neverwinter Nights franchise has sold more than two million copies worldwide, is translated into 10 languages, sold in more than 40 countries and features one of the largest and most active fan communities in all of gaming. To date, fans of the franchise, which includes Neverwinter Nights, Neverwinter Nights: Shadows of Undrentide and Neverwinter Nights: Hordes of the Underdark, have created nearly 4,000 modifications to the original game using the award-winning Aurora Toolset, the groundbreaking software included with the full game that allows players to create their own universes, quests and storylines. A new and improved toolset will be included with the release of Neverwinter Nights 2.

Neverwinter Nights 2 is scheduled for release in September 2006. More information about Neverwinter Nights 2 can be found at www.nwn2.com, which includes user forums, project news, development updates and more.

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About Obsidian Entertainment

Obsidian Entertainment, Inc. is a premier software development company passionately dedicated to creating high quality, next generation role-playing games for PC and console systems. More information about Obsidian Entertainment can be found online at www.obsidianent.com.

About THE HASBRO PROPERTIES GROUP

The Hasbro Properties Group (HPG), the intellectual property development arm of Hasbro, Inc., (NYSE:HAS), translates one of the industry's richest portfolios of brands into a world of fun and excitement for children and adults globally. Through a host of publishing, digital media, lifestyle and entertainment platforms, HPG is able to surround fans worldwide with consumer products that expand Hasbro's core brands, such as TRANSFORMERS, LITTLEST PET SHOP, MY LITTLE PONY, MONOPOLY, G.I. JOE, TONKA and PLAYSKOOL.

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), Stuntman 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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DUNGEONS & DRAGONS, FORGOTTEN REALMS, Neverwinter Nights, Neverwinter Nights: Shadows of Undrentide and Neverwinter Nights: Hordes of the Underdark and related logos are trademarks of Wizards of the Coast Inc. in the United States and/or other jurisdictions, and are used with permission. Hasbro and its logo are trademarks or registered trademarks of Hasbro, Inc. in the U.S. and/or other jurisdictions, and are used with permission. Atari and the Atari logo are trademarks or registered trademarks of Atari, Inc. in the U.S. and/or other jurisdictions, and are used with permission. Obsidian Entertainment and the Obsidian Entertainment logo are trademarks of Obsidian Entertainment, Inc. in the U.S. and/or other jurisdictions. Copyright 2006 Atari, Inc. All rights reserved. All other trademarks are the property of their respective owners.

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.

Contacts: Andrea Schneider Brandon Smith
Atari, Inc. Maverick PR
(212) 726-4259 (310) 404-9906
Andrea.schneider@atari.com Brandon@maverickpr.net

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