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ELECTRONIC ARTS ANNOUNCES 74 PERCENT INCREASE IN NET INCOME FOR ITS THIRD QUARTER

 ELECTRONIC ARTS ANNOUNCES 74 PERCENT INCREASE IN NET INCOME
 FOR ITS THIRD QUARTER
 SAN MATEO, Calif., Jan. 20 /PRNewswire/ -- Electronic Arts (NASDAQ: ERTS) today announced its third quarter, fiscal 1992 operating results. Net income for the third quarter ended Dec. 31, 1991, was $6,815,000, up 74 percent from $3,924,000 earned in the third quarter of fiscal 1991. Net income for the nine months ended Dec. 31, 1991, was $10,934,000 compared to $6,817,000 in the first nine months of the last fiscal year, an increase of 60 percent. Earnings per share for the third quarter were up 63 percent to $.62 from $.38 in the third quarter of the prior year. Earnings per share for the nine months ended Dec. 31, 1991, were $1.03 compared to $.65 in the same period of fiscal 1991.
 Revenues for the quarter ended Dec. 31, 1991, were $59,077,000 compared to $35,864,000 in the third quarter of fiscal 1991, an increase of over 64 percent. Revenues for the first nine months of fiscal year 1992 were $116,712,000 compared to $78,377,000 in the same period last year, an increase of over 48 percent.
 Revenue growth in the December quarter was achieved primarily from the sales of 16-bit video game products on the Sega(TM) Genesis(TM) and the Super Nintendo Entertainment System(R) (SNES). The company released seven new Genesis titles during the quarter -- F-22 Interceptor(TM), James Pond(TM) II, The Immortal(TM), John Madden Football(TM) 92, Dark Castle(TM), Fatal Rewind(TM), and Shadow of the Beast(TM) -- bringing its total Genesis product line to 24 titles. According to many retailers and an independent research firm, top ten best sellers lists for the Genesis during the Christmas season
included up to four Electronic Arts titles. The company also shipped its first title -- John Madden Football -- on the Super Nintendo Entertainment System which was among the top-selling SNES titles during Christmas according to many retailers.
 Significant growth was achieved in all geographic territories. Revenues were up over 60 percent in both the United States and European markets and over 30 percent in Australia.
 Larry Probst, president and CEO of Electronic Arts, said, "In spite of a recessionary environment, we were very pleased with the results of our Christmas season. Sales of the Sega Genesis exceeded our expectations and provided an increasing base of demand for our products. We were also pleased with the levels of inventories left in the channel after Christmas which indicated strong sell-through to consumers. We believe that these results make us the leading third- party publisher of 16-bit videogames."
 F-22 Interceptor, Fatal Rewind, The Immortal and John Madden Football are trademarks of Electronic Arts. Dark Castle is a trademark of Silicon Beach Software. James Pond is a trademark of Millenium. Sega and Genesis are trademarks of Sega Enterprises Ltd. Shadow of the Beast is a trademark of Psygnosis Limited. Super Nintendo Entertainment System is a registered trademark of Nintendo of America Inc.
 ELECTRONIC ARTS
 EARNINGS ANNOUNCEMENT, Q3, FISCAL YEAR 1992
 CONDENSED STATEMENTS OF INCOME (UNAUDITED)
 (In thousands except per share data)
 3 Mos Ended 9 Mos Ended
 Dec 31, Dec 31,
 1991 1990 1991 1990
 Net Revenues $59,077 $35,864 $116,712 $78,377
 Cost of sales 33,095 19,849 63,169 43,790
 Gross profit 25,982 16,015 53,543 34,587
 Operating expenses:
 Marketing and sales 7,311 4,468 16,260 10,670
 General and administrative 3,915 2,718 9,270 6,524
 Research and development 4,386 3,012 11,844 7,900
 Total costs and expenses 15,612 10,198 37,374 25,094
 Operating income 10,370 5,817 16,169 9,493
 Interest and other income, net 161 179 846 1,018
 Income before income taxes 10,531 5,996 17,015 10,511
 Provision for income taxes 3,716 2,072 6,081 3,694
 Net income $ 6,815 $ 3,924 $10,934 $ 6,817
 Earnings per share $0.62 $0.38 $1.03 $0.65
 Weighted average shares
 outstanding 10,917 10,325 10,572 10,487
 CONDENSED BALANCE SHEETS (UNAUDITED)
 (In thousands)
 Dec 31, Mar 31,
 1991 1991
 ASSETS
 Cash and cash equivalents 7,969 5,545
 Prepaid royalties 2,783 1,869
 Other current assets 1,919 1,906
 Total current assets 76,748 53,594
 Furniture and equipment, net 4,687 3,075
 Prepaid royalties 2,185 2,060
 Other assets 3,754 4,797
 Total Assets $87,374 $63,526
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Accounts payable $13,359 $ 8,274
 Accrued liabilities 17,439 12,746
 Total current liabilities 30,798 21,020
 Other liabilities 89 115
 Common stock 103 21,439
 Paid in capital 23,909 0
 Retained earnings 31,877 20,943
 Translation adjustment 598 9
 Total Liabilities and
 Shareholders' Equity $87,374 $63,526
 -0- 1/20/92
 /CONTACT: Holly Hartz, 415-571-7171, ext. 510, fax 415-571-7995; or Stan McKee, 415-571-7171, ext. 345, fax 415-571-6375, both of Electronic Arts/
 (ERTS) CO: Electronic Arts ST: California IN: ENT SU: ERN


RM -- SF003 -- 1468 01/20/92 14:31 EST
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