Atari Provides Financial Guidance for Second Quarter and Fiscal 2004.

Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 5, 2003

Atari, Inc. (Nasdaq: ATAR) announced today that an amendment to a registration statement it has filed with the SEC includes the following financial guidance for the second quarter ended September 30, 2003 and Fiscal Year ended March 31, 2004.

Partly because Atari's new product releases during the current fiscal year are concentrated primarily in the first, third and fourth fiscal quarters (ending June 30 and December 31, 2003, and March 31, 2004, respectively), the Company's revenues and earnings for the second fiscal quarter ending September 30, 2003 will be lower than they were during the same period of 2002. Nonetheless, the Company expects net revenues for its full fiscal year ending March 31, 2004 to be between $560 million and $590 million, which would be between 5% and 10% higher than its net revenues for the twelve months ended March 31, 2003, and net income for its full fiscal year to be between $35 million and $45 million, which would be between 100% and 160% higher than its net income for the twelve months ended March 31, 2003.

Additionally, the Company's issuance of stock in satisfaction of indebtedness to Infogrames Entertainment SA (IESA) will be treated for accounting purposes as involving a dividend to IESA equal to the value of the number of shares Atari will be issuing in satisfaction of that debt in excess of the number of shares the Company would have issued if that debt had been converted into common stock at stated conversion prices of $20 and $9.25 per share. Based on the September 2, 2003 price of $4.70 per share, the Company's reported income available for common stockholders would be approximately $39.2 million less than the net income for the year ending March 31, 2004, with a resulting reduction of earnings per share.

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 2003, 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.

Safe Harbor Statement

This press release includes forward-looking statements, as that term is defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual events may differ materially from what is described in this press release. Factors that could cause actual events to differ materially include, but are not limited to, delays in releases of new products, unexpected development, production or distribution costs, failure of new products in excess of what had been anticipated, failure of particular video games to achieve expected sales volumes, failure of the proposed public offering to take place, either because of factors relating to Atari or because of market conditions, or the failure of the Atari or the IESA Board of Directors to approve the final terms of the arrangement between Atari and IESA.