Acclaim Studios Evolves into a Single Worldwide Entity; Internal Development Cornerstone of Product Success.

GLEN COVE, N.Y.--(BUSINESS WIRE)--May 12, 1999--

Acclaim Entertainment, Inc. (NASDAQ: AKLM), a leading worldwide interactive entertainment company, today announced the unification of all internal studios under the umbrella of Acclaim Studios. The name change reflects Acclaim's strategy to form the strongest internal creative force in the industry. Studios will be referred to as Acclaim Studios Austin, Acclaim Studios Salt Lake City, Acclaim Studios London(UK), Acclaim Studios Teesside (UK) and Acclaim Studios New York.

"This change reflects our global development strategy designed to permit the most effective use of all of our creative talent," said Darrin Stubbington, executive vice president of Acclaim Studios. "This is accomplished in part through the consolidation and management of our five studios under one operating group based in our Austin Studio. Fundamental in the organization of our studios is the sharing of tools, engines and technologies while at the same time retaining the creative integrity of each of the local studio operations."

Acclaim Studios currently employs more than 550 professionals and has been responsible for Acclaim's critically-praised and popular titles including Turok: Dinosaur Hunter, Extreme-G 2, Forsaken, WWF War Zone, NFL Quarterback Club 99, South Park, NBA Jam 99, All-Star Baseball 2000, and Turok 2: Seeds of Evil. Internally-developed products coming soon include Shadow Man, ReVolt, Armorines, WWF Attitude, and NFL Quarterback Club 2000.

"Our internal development is one of the key strengths of our organization generating more than 65 percent of our revenues," added Gregory Fischbach, co-chairman and CEO of Acclaim Entertainment. "The success of Acclaim Studios as a single unified organization will continue to advance as Acclaim looks to grow the studio headcount through expansion and acquisition."

Over a two-year period, the studio's organization has evolved incrementally, starting with the sharing of technology and digital assets, and continuing with the formation of a centralized management team based in Austin, Texas. Acclaim will continue to use the Iguana as a company mascot. Acclaim plans to unveil a new Acclaim Studios logo shortly after E3.

This press release contains forward-looking statements. There are certain important factors that could cause results to differ materially from those anticipated by the statements made above. Such risks and uncertainties include, among other things, the growth of the installed base of 32-bit and 64-bit gaming and PC systems, the timely availability and acceptance of Acclaim's future products for such systems, the competitive environment in the consumer software and related industries, the management of inventories and operating overheads and the related impact upon liquidity should any of these risks occur. These and other risks and uncertainties are detailed from time to time in Acclaim's reports filed with the Securities and Exchange Commission.

Acclaim Entertainment Background Information

Acclaim Entertainment, Inc. is a leading worldwide developer, publisher and mass marketer of software for use with interactive entertainment platforms including Nintendo, Sony and Sega hardware systems, and PCs. Acclaim owns and operates four studios located in the United States and the United Kingdom, and publishes and distributes its software directly in North America, the United Kingdom, Germany, France and Australia. Acclaim also distributes entertainment software for other publishers worldwide, and publishes comic books and software strategy guides. Acclaim's headquarters are in Glen Cove, New York and Acclaim's common stock is publicly traded on NASDAQ under the symbol AKLM. For more information please visit our website at www.acclaim.net.