Shrek(R) Smash N' Crash Racing Rides onto Retail Store Shelves Nationwide.

MINNEAPOLIS -- Gamers can take the ride of their life through the Shrek[R] universe in Shrek[R] Smash N' Crash Racing, available now from Activision Publishing, Inc., a wholly owned subsidiary of Activision, Inc. (Nasdaq:ATVI). Players will take the role of their favorite Shrek characters and zoom, crash and slide their way through 12 enchanted locations using racing and combat skills against an assortment of twisted fairy tale opponents.

"Shrek Smash N' Crash Racing gives gamers a chance to experience a variety of racing challenges, including Tournament and Cup Challenge, and high speed Time Trials that will have them smashing and crashing through the colorful Shrek universe," said David Oxford, Activision Publishing, Inc. "The game features Shrek's signature fun and humor and gives kids a chance to interact with their favorite Shrek characters like never before."

In Shrek Smash N' Crash Racing, gamers take on the role of Shrek, Princess Fiona, Donkey, Puss in Boots or eight other Shrek universe characters, and race around on comical vehicles such as Puss in Boots' bull, Humpty Dumpty's egg cup and Gingy's cupcake. With a wide variety of tracks featuring log swings, windmills, moving gates, draw bridges and other gauntlets that test racing skills, players must use their melee accessories, such as Donkey's microphone and Pinocchio's nose, to battle twisted fairy-tale opponents through 12 locations, from Shrek's Swamp to Far Far Away to Fairy Godmother's Factory. Pixie dust, ogre strength and swamp gas will boost speed and strength, as well as thwart players' opponent's progress if gamers fall behind. Players can pit their skills against the game's advanced AI or enjoy the challenge of schooling their friends in multi-player, split-screen action.

Shrek Smash N' Crash Racing is available now for the PlayStation[R]2 computer entertainment system for a suggested retail price of $29.99 and for Game Boy[R] Advance for a suggested retail price of $19.99. The game will also be available later this holiday season on the PSP[TM] (PlayStation[R] Portable) system, the Nintendo[R] GameCube[TM] and Nintendo DS[TM] for a suggested retail price of $29.99. The game has been rated "E" ("Everyone") by the ESRB for all versions.

About Activision, Inc.

Headquartered in Santa Monica, Calif., Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $1.47 billion for the fiscal year ended March 31, 2006.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia, Spain, the Netherlands and South Korea. More information about Activision and its products can be found on the company's World Wide Web site, which is located at www.activision.com.

The statements made in this press release that are not historical facts are "forward-looking statements." These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, litigation, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the Company's financial results are described in our filings with the Securities and Exchange Commission, including the Company's most recent Annual report on Form 10-K and Quarterly Report on Form 10-Q. Readers of this press release are referred to such filings. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.