Atari Share Sale Totals $131 Million as Over-Allotment is Exercised; Underwriters Exercise 3.9 Million Share Over-Allotment Option.

Business Editors

NEW YORK--(BUSINESS WIRE)--Oct. 21, 2003

Atari, Inc. (Nasdaq: ATAR), a leading global publisher and developer of interactive entertainment, today announced that the underwriters of its recently completed $115 million public offering have exercised their over-allotment option to purchase 3,855,400 shares of Atari's common stock, increasing the total size of the stock sale to $131 million. The closing of the over-allotment exercise occurred on October 21, 2003.

Bruno Bonnell, Chairman and CEO of Atari, Inc. said, "The combination of our diverse product portfolio and disciplined approach to product development is an attractive and unique investment opportunity in the interactive entertainment industry, exemplified by the successful public sale of $131 million of our stock. The strong interest of investors in being part of Atari's future led to a substantial portion of the over-allotment option's being exercised."

The Company said that the underwriters, including UBS Securities LLC, as sole bookrunner, and Harris Nesbitt Gerard, Inc. and SoundView Technology Group as co-managers, had exercised their option to acquire an additional 3,855,400 shares at a purchase price of $4.25 per share, increasing the total public offering to $131.1 million. The option shares were purchased from the Company's majority shareholder, Infogrames Entertainment, SA (IESA), further reducing IESA's stake in Atari to approximately 68%. The net proceeds IESA received from the over-allotment option exercise were approximately $15.6 million. Atari did not receive any of the proceeds from the exercise of the over-allotment option. In the offering, Atari sold 9.82 million new shares of its common stock at $4.25 per share, generating net proceeds of $35 million, and including the over-allotment option, IESA sold 21.03 million shares of stock. Atari now has a public-float of approximately 39.3 million shares, or 32% of the 120.9 million shares outstanding.

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 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

Certain statements contained in this release are forward-looking statements (rather than historical facts) that are subject to risks and uncertainties that could cause actual results to differ materially from those described. With respect to such forward-looking statements, the company seeks the protection afforded by the Private Securities Litigation Reform Act of 1995 and other enabling legislation. Statements contained herein with regard to the company's business outlook and prospective operating and financial results are based upon management's expectations regarding various factors, which may be beyond the company's control. This statement is not intended to identify each and every risk and uncertainty inherent in the company's business, and should be read in conjunction with the company's cautionary statements contained in its most recent filings with U.S. and foreign regulatory authorities.