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RedOctane (R) Announces Guitar Hero II(TM) For Xbox 360

Next-Generation Game to Deliver Downloadable Content and New Guitar Hero X-Plorer® Controller

SUNNYVALE, Calif., September 27, 2006 - Guitar Hero II is going to be rocking a new stage! RedOctane® announced today that the Guitar Hero crew will bring their award-winning tour to the Xbox 360 video game and entertainment system from Microsoft.

"The tour will continue the rockin' gameplay Guitar Hero fans have come to enjoy, and will now include expanded Xbox 360 capabilities," said Kai Huang, president of RedOctane. "With Guitar Hero II for Xbox 360 rock rhythm, lead, or bass guitar tracks with downloadable content and the new X-Plorer® controller, designed specifically for the Xbox 360."

RedOctane will reveal an early glimpse of Guitar Hero II and the X-Plorer controller at X06, the Xbox® brand experience for the games and entertainment industry, being held on September 27th and 28th in Barcelona, Spain. This industry event is open to media and retailers from around the world to view the next-generation of games and accessories.

"With its large integrated hard drive, Xbox 360 provides an incredible platform for facilitating downloadable content," said Dusty Welch, Head of Publishing, RedOctane. "We believe there is no better title to feature micro-transactions than a music game like Guitar Hero II, where the content is the basis of your experience. The relationship with the Xbox Live® Marketplace creates endless possibilities for exclusive content."

Guitar Hero II is the follow-up to 2005's award-winning release, Guitar Hero, which rocked the game industry and garnered a stack of awards including: "Best Offline Multiplayer Game 2005" and "Music Game of the Year 2005" from IGN.com, "Best Soundtrack 2005" at the Spike TV Videogames Awards and five D.I.C.E. awards, including Outstanding Innovation in Gaming and Family Game of the Year.

About RedOctane

RedOctane, Inc. is a publisher, developer, and distributor of interactive entertainment software, hardware and accessories. RedOctane's leading software product offerings include Guitar Hero for the PlayStation 2. RedOctane also designs, manufactures, and markets high quality video game peripherals and accessories and has won awards for the Ignition® Dance Pad and the Guitar Hero SG® Controller. Headquartered in Sunnyvale, California, RedOctane is a wholly-owned subsidiary of Activision, Inc. More information about RedOctane and its products can be found on the company's website, which is located at www.redoctane.com.

The statements made in this press release that are not historical facts are "forward-looking statements". These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, changes in consumer preferences related to music-based games, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the Company's financial results are described in our filings with the Securities and Exchange Commission, including the Company's most recent Annual report on Form 10-K and Quarterly Report on Form 10-Q. Readers of this press release are referred to such filings. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

RedOctane® is a registered trademark of RedOctane, Inc. "Guitar Hero" and "Guitar Hero II" are trademarks of RedOctane, Inc. Developed by Harmonix Music Systems. ®2005 RedOctane, Inc. ALL RIGHTS RESERVED. Gibson®, X-Plorer®, and the overall shapes of the X-Plorer controller and the guitars are trademarks of Gibson Guitar Corp. under license by RedOctane, Inc.

About Xbox and Xbox 360

Microsoft revolutionized the gaming industry with the November 2001 launch of Xbox ( http://www.xbox.com), its first-generation video game and entertainment system, now sold in 26 countries. Microsoft introduced its next-generation system, Xbox 360, in the 2005 holiday season in Europe, Japan and North America, and launched the system in Australia, Colombia, Hong Kong, Korea, Mexico, New Zealand, Singapore and Taiwan in 2006. Xbox 360 ( http://www.xbox.com/xbox360) is the most powerful video game and entertainment system, delivering the best games, the next generation of the premier Xbox Live online gaming service, and unique digital entertainment experiences that revolve around gamers.

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