Atari's ``Forgotten Realms: Demon Stone'' Coming to Xbox; Creators of ``The Lord of the Rings: The Two Towers'' to Bring Popular ``Dungeons & Dragons'' World to Xbox.

Business & Entertainment Editors

LOS ANGELES--(BUSINESS WIRE)--May 25, 2004

Atari (Nasdaq:ATAR) and Stormfront Studios, under license from Hasbro, Inc., have announced plans to develop "Forgotten Realms(R): Demon Stone(TM)," an action-adventure game set in the popular "Dungeons & Dragons(R)" world created by Wizards of the Coast. Designed by Stormfront Studios, creators of "The Lord of the Rings: The Two Towers," and originally in development for the PlayStation(R) 2 computer entertainment system, "Demon Stone" will now also be available for the Xbox(R) video game system from Microsoft this fall.

Featuring a storyline developed by New York Times best-selling author R.A. Salvatore, "Demon Stone" will also feature the extraordinary talents of actors Patrick Stewart and Michael Clarke Duncan, who will lend their voices to two prominent roles in the video game. "Demon Stone," which is scheduled for release in Fall 2004, is set in the popular "Dungeons & Dragons(R)" world created by Wizards of the Coast. "Demon Stone" is being developed by Stormfront Studios, creators of "The Lord of the Rings: The Two Towers."

"Demon Stone's" intense, cinematic action is set entirely within the visually stunning Forgotten Realms fantasy world. Familiar characters, such as the famous drow Drizzt Do'Urden(TM) and the legendary mage Khelban "Blackstaff" Arunsun; and terrifying monsters, including Dragons, Orcs, Slaadi, Yuan-Ti and Trolls; as well as geographical locations straight from the popular D&D campaign setting will make appearances and serve as backdrops throughout the game. The story of "Demon Stone" revolves around the adventuring party's unwitting intrusion into an age-old conflict between two warring demonic armies -- one led by a Githyanki Princess and the other, a Slaad Lord. After inadvertently releasing both demons back upon the world after eons of imprisonment, it becomes the adventurers' quest to right their wrong and restore order to the world of Faerun.

In "Demon Stone," the player directs a party of three characters -- a Fighter, a Sorcerer and a Rogue. The player controls one party member at a time -- switching between them on the fly -- while the other party members are controlled by the engine's sophisticated artificial intelligence. For example, when the player controls the Fighter, the Sorcerer and Rogue will continue to engage in combat, cast spells and assist the player in defeating all challengers. In many situations, the characters will be able to divide and conquer difficult objectives -- while the Fighter holds back a horde of Yuan-Ti snakemen with brute force, the Sorcerer supports him with devastating ranged magic, while the Rogue sneaks above and behind them for a coup de grace. The player participates seamlessly in each critical moment as the characters are cinematically switched from one perspective to another.

"Demon Stone" will utilize an extensive fighting system which is both easy to learn and visually stunning. Characters will perform amazing attacks and feats at the simple touch of a button, but the system has sophisticated features for advanced players who want to tailor their attacks to maximize their damage in specific situations. Unique special attacks, combinations, linked combos, super attacks and even group super attacks allow advanced players to excel against their most fearsome foes.

In addition, "Demon Stone" will allow players to upgrade their characters with a branching path of new feats and combos as they gain experience and levels. Each character will feature a number of unique abilities, such as the Fighter's combat skills and strength, the Rogue's stealth and lock-picking abilities and the Sorcerer's plethora of new spells. For example, when upgrading the Fighter, the player might have the choice of upgrading his Strength, his Melee Skill or his Hand-to-Hand skill. Within those choices, there will be other dependencies, such as the requirement to earn Power Attack before Cleave can be acquired.

"Demon Stone" is scheduled for release in the fall of 2004.

About Stormfront Studios

Stormfront Studios develops top quality, award-winning entertainment products for PlayStation 2, Xbox, PC and interactive TV, producing both AAA-quality originals and high-profile licensed titles for clients, including Atari, Electronic Arts, Microsoft, Sony and AOL. The company's most recent hit is "The Lord of the Rings: The Two Towers" (PlayStation 2 & Xbox, developed for EA, based on the Peter Jackson Film from New Line Cinema), which has sold over 3.5 million copies worldwide. Founded in 1988, Stormfront has been named to the Inc. 500 list of entrepreneurial companies three times, and the company owns all of the engines and technology in its games. The company is based in San Rafael, Calif., and is privately held. For more information, visit www.stormfront.com.

About Wizards of the Coast

Wizards of the Coast, Inc., a subsidiary of Hasbro, Inc. (NYSE:HAS), is a worldwide leader in the trading card game and tabletop roleplaying game categories, and a leading developer and publisher of game-based entertainment products. The company holds an exclusive patent on trading card games and their method of play (TCGs) and produces one of the world's best-selling TCGs, "Magic: The Gathering(R)," as well as the celebrated "Dungeons & Dragons(R)" roleplaying game. Publisher of adventure games, family card and board games, and electronic media products, Wizards of the Coast is also one of the world's premier book publishers of fantasy series fiction whose novels have made numerous appearances on The New York Times best-seller list and have sold millions of copies worldwide. For more information, visit the Wizards of the Coast website at wizards.com.

About Hasbro, Inc.

Hasbro (NYSE:HAS) is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world.

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 games such as "Driver(TM)," "Enter the Matrix(TM)," "Neverwinter Nights(TM)," "Stuntman(TM)," "Test Drive(R)," "Unreal(R) Tournament 2004" and "Unreal(R) Championship"; and mass-market and children's games such as "Backyard Sports(TM)," "Nickelodeon's Blue's Clues(TM)" and "Dora the Explorer(TM)," "Civilization(R)," "Dragon Ball Z(R)" and "RollerCoaster Tycoon(R)." Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext 5257), the largest interactive games publisher in Europe. For more information, visit www.atari.com.

"Forgotten Realms," "Demon Stone," "Dungeons & Dragons," "Neverwinter Nights," "Drizzt Do'Urden" and "Magic: The Gathering" are trademarks of Wizards of the Coast in the U.S. and other countries.