Acclaim Entertainment, Inc. Gives Net Revenue and Earnings Guidance for Fiscal Year 2003 and 2004; Company Prepared to Grow Beyond $500 Million by Year 2004.

Business/Entertainment Editors

E3Expo 2002

LOS ANGELES--(ENTERTAINMENT WIRE)--May 23, 2002

Acclaim Entertainment, Inc. (NASDAQ.SC: AKLM), a leading global video entertainment software developer and publisher, today will announce its net revenue and earnings guidance for fiscal years 2003 and 2004 during the Company's analyst breakfast at the Electronic Entertainment Expo in Los Angeles.

"Fueling our growth for fiscal years 2003 and 2004, will be the worldwide 9-01-02 launch of Turok(TM): Evolution(TM) across all four next-generation gaming platforms, which we believe will significantly build upon the $250 million global brand that we launched in 1997," said Gregory Fischbach, Chief Executive Officer of Acclaim. "Our product lineup will continue to be a diverse mix of new and innovative titles such as VEXX(TM) and Aggressive Inline(TM), as well as proven brands with predictable success, such as All-Star Baseball(TM), Dave Mirra BMX(TM), NBA JAM(TM), Jeremy McGrath Supercross(TM), ATV Quad Power Racing(TM) and HBO Boxing(TM)."

Fiscal Year 2003 Net Revenue and Earnings Guidance

For fiscal year 2003, the Company is maintaining its previously stated annual net revenue and earnings guidance of $379.0 and $66.0 million, respectively. Furthermore, the Company is providing additional net revenue and earnings guidance detail for the first and second half of fiscal year 2003. The Company projects that net revenue for the first quarter of fiscal 2003 is estimated to range between $110.0 and $120.0 million, a 36% to 48% increase over the previous fiscal year. For the second quarter, the Company projects net revenue to range between $80.0 and $90.0 million, a 13% to 27% increase over the previous fiscal year.

Net earnings for the first quarter of fiscal year 2003 are projected to range between $23.0 and $25.0 million, or $0.23 to $0.26 per diluted share. For the second quarter, net earnings are projected to range between $8.0 and $9.0 million, or $0.08 to $0.09 per diluted share.

Fiscal Year 2004 Net Revenue and Earnings Guidance

The Company projects net revenue for fiscal year 2004 of $502.0 million, a 32% increase over its fiscal year 2003 net revenue guidance. The Company also forecasts that net earnings and EPS will grow to $85.0 million and $0.87 per diluted share, a 29% increase over its fiscal 2003 earnings guidance.

The following chart outlines the Company's estimated guidance for FY 2003 and FY 2004:

                 First Quarter  Second Quarter   FY 03        FY 03
                     Range          Range       1st Half    2nd Half
----------------------------------------------------------------------

Net Revenue     $110.0 - $120.0  $80.0 - $90.0    $190.0       $189.0

Earnings          $23.0 - $25.0    $8.0 - $9.0     $31.0        $35.0

EPS               $0.23 - $0.26  $0.08 - $0.09     $0.32        $0.36

Fully Diluted
 Shares (MM)                 98             98        98           98

                                                 FY 03        FY 04
                                               Full Year    Full Year
----------------------------------------------------------------------
Net Revenue                                       $379.0       $502.0

Earnings                                           $66.0        $85.0

EPS                                                $0.67        $0.87

Fully Diluted
 Shares (MM)                                          98           98

Q3/Q4 Fiscal Year 2002 Release Schedule

For the balance of fiscal year 2002, the Company intends to release 18 SKU's on the annotated ship dates:

         PlayStation 2:
      -   Aggressive Inline(TM)- 5/28
      -   Headhunter(TM)- 5/4
      -   Turok(TM): Evolution(TM)- 9/1

         GameCube:
      -   Aggressive Inline(TM)- 7/30
      -   Burnout(TM)- 4/30
      -   Legends of Wrestling(TM)- 5/28
      -   Turok(TM): Evolution(TM)- 9/1
      -   ZooCube(TM)- 5/30

         Xbox:
      -   Aggressive Inline(TM)- 7/30
      -   Burnout(TM)- 4/30
      -   Legends of Wrestling(TM)- 5/28
      -   Turok(TM): Evolution(TM)- 9/1

         Game Boy Advance:
      -   Aggressive Inline(TM)- 8/6
      -   All-Star Baseball 2003(TM)- 5/7
      -   Mary-Kate& Ashley Girls Night Out(TM)- 3/14
      -   Punch King(TM)- 5/30
      -   Turok(TM): Evolution(TM)- 9/1
      -   ZooCube(TM)- 5/30

Fiscal Year 2003 Release Schedule

In fiscal 2003, the Company intends to release 56 SKU's: 17 for PlayStation(R)2; 14 for Nintendo's GameCube(TM); 18 for Microsoft's Xbox(TM) and 7 for Nintendo's Game Boy(R) Advance.

During the first quarter of fiscal year 2003, Acclaim intends on releasing 15 SKU's:

         PlayStation 2:
      -   Burnout 2: Point of Impact(TM) - 10/29
      -   Dave Mirra BMX XXX(TM) - 11/25
      -   Legends of Wrestling 2(TM) - 10/29
      -   Mary-Kate & Ashley Sweet 16(TM) - 11/25
      -   VEXX(TM) - 10/22

         GameCube:
      -   Dave Mirra BMX XXX(TM)- 11/25
      -   Legends of Wrestling 2(TM)- 10/29
      -   Mary-Kate & Ashley Sweet 16(TM)- 11/25
      -   VEXX(TM)- 10/22

         Xbox:
      -   Dave Mirra BMX XXX(TM)- 11/25
      -   Legends of Wrestling 2(TM)- 10/29
      -   VEXX(TM)- 10/22

         Game Boy Advance:
      -   Dave Mirra BMX XXX(TM)- 10/29
      -   Legends of Wrestling 2(TM)- 10/29
      -   Mary-Kate & Ashley Sweet 16(TM)- 10/8

Fiscal Year 2004 Release Schedule

In fiscal 2004, the Company intends to release between 62-70 SKU's across the four leading next-generation platforms.

Safe Harbor Statement

This press release contains forward-looking statements. The forward-looking statements included here are based on current expectations that involve a number of risks and uncertainties, as well as on certain assumptions. Such statements regarding future events and/or the future financial performance of the Company are subject to certain risks and uncertainties, such as delays in the completion or release of products, the continued support of the Company's lead lender and vendors, the achievement of sales assumptions as projected, the continuation of savings from expense reductions, the risk of war, terrorism and similar hostilities, the possible lack of consumer appeal and acceptance of products released by the Company, fluctuations in demand, that competitive conditions within the Company's markets will not change materially or adversely, that the Company's forecasts will accurately anticipate market demand and the related impact upon liquidity and its ability to service its debt obligations should any of these risks occur. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economic, competitive and market conditions, and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, the business and operations of the Company are subject to substantial risks and uncertainties that increase the uncertainty inherent in the forward-looking statements. These and other risks and uncertainties are detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission and should be referred to.

About Acclaim Entertainment

Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a leading worldwide developer, publisher and mass marketer of software for use with interactive entertainment game consoles including those manufactured by Nintendo, Sony Computer Entertainment and Microsoft Corporation as well as personal computer hardware systems. Acclaim owns and operates six studios located in the United States and the United Kingdom which includes a motion capture and recording studio in the U.S., and publishes and distributes its software through its subsidiaries in North America, the United Kingdom, Germany, France and Spain. The Company uses regional distributors worldwide. Acclaim also distributes entertainment software for other publishers worldwide, publishes software gaming strategy guides and issues "special edition" comic magazines from time to time to support its time valued brands, Turok and Shadow Man. Acclaim's corporate headquarters are in Glen Cove, New York and Acclaim's common stock is publicly traded on NASDAQ.SC under the symbol AKLM. For more information please visit our website at www.acclaim.com.