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GT INTERACTIVE REPORTS RECORD SECOND QUARTER REVENUES; Publishing Business Increases Nearly 300 Percent.

NEW YORK--(BUSINESS WIRE)--August 1, 1996--GT Interactive Software Corp. (NASDAQ: GTIS) today reported record second quarter revenues of $72.0 million for the quarter ended June 30, 1996, an increase of approximately 138 percent over the same period last year. Earnings per share were $0.08 for the quarter, while net income for the period was $4.8 million, approximately 124 percent increase over the second quarter of 1995's net income.

For the six months ended June 30, 1996, GT Interactive reported net revenue of $140.9 million and net income of $10.1 million. This represents approximately a 118 percent increase in revenue and approximately a 76 percent increase in net income over the same period last year when viewed on a tax-adjusted basis.

"With nearly a 300 percent increase in the quarter over last year in our premier publishing business and approximately a 240 percent increase in the value-priced area, augmented by our acquisitions of The WizardWorks Group and FormGen we took significant strides toward achieving our goal of becoming a major global interactive software publisher," said Ron Chaimowitz, president and chief executive officer of GT Interactive. "As we head into the holiday season with a strong portfolio of titles including Duke Nukem 3D, the number one PC game on the market; our first entries in the next-generation video game market; as well as the exciting children's software lineup of our most recent acquisition -- Humongous Entertainment -- we believe we are well-positioned to maintain our leadership position."

Notable activities GT Interactive undertook during second quarter include:

-- Completion of the acquisition of The WizardWorks Group,

Inc., a leading publisher and developer of value-priced

interactive entertainment, edutainment and productivity

software in a pooling of interests wherein GT Interactive

exchanged 2.35 million shares of common stock for all the

outstanding shares of The WizardWorks Group;

-- Completion of the acquisition of FormGen Corporation,

publishers of the current number one PC hit, Duke Nukem 3D,

in a pooling of interests transaction in which GT

Interactive exchanged approximately one million shares of

common stock for all the outstanding shares of FormGen;

-- Entering into a broad-based publishing agreement with

award-winning children's author, Mercer Mayer and his

software development company, Big Tuna New Media, whereby GT

Interactive obtained exclusive rights to publish Mayer's

catalog of children's properties -- including Little

Critter, LC and the Critter Kids, Little Monster and

Critters of the Night.

Headquartered in NY, with offices in London, San Francisco, Minneapolis, Phoenix and Seattle, GT Interactive Software Corp. is a leading publisher of interactive entertainment, edutainment and reference software for IBM-compatible and Macintosh computers as well as 32- and 64-bit gaming systems. Among GT Interactive's best-selling titles are Doom II, Mortal Kombat 3 and Duke Nukem 3D. Located at on the World Wide Web, GT Interactive is publicly traded on the NASDAQ National Market System under the symbol GTIS.

Note: Certain statements contained in this press release may be deemed forward-looking statements that involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially are the following: worldwide business and industry conditions; adoption of new hardware systems; product delays; company customer relations, and other risks detailed, from time to time, in the company's SEC reports including, but not limited to the report on form 10K for the year ended December 31, 1995.

 GT Interactive Software Corp. and Subsidiaries
 Condensed Consolidated Balance Sheets

 December 31, June 30,
 1995(a) 1996
 (in thousands)

Cash and short-term investments $ 92,361 $ 69,743
Receivables, net 83,191 63,226
Inventories, net 48,513 44,514
Other current assets 45,537 68,468
 Total current assets 269,602 245,951

Property and equipment, net 5,670 6,954
Other assets 22,297 24,956
 Total assets $ 297,569 $ 277,861

Accounts payable $ 87,366 $ 64,946
Accrued liabilities 44,452 35,599
Other current liabilities 34,167 36,939
 Total current liabilities 165,985 137,484

Long-term liabilities 7,788 6,506
 Total liabilities 173,773 143,990

Stockholders' equity 123,796 133,871

 Total liabilities and
 stockholders' equity $ 297,569 $ 277,861

(a) The above information has been restated for the acquisition of
WizardWorks Group, Inc. and Candel, Inc.


 GT Interactive Software Corp. And Subsidiaries
 Condensed Consolidated Statements Of Operations

 For The Quarter
 Ended June 30,
 1995 1996
 (in thousands)

Net sales $ 30,298 $ 72,032
Cost of goods sold 17,440 41,144
Selling, general and 9,261 21,146
administrative expenses
 Income before merger costs
 and income taxes 3,597 9,742
Merger costs 1,573
Provision for income taxes 1,457 3,381
 Net income $ 2,140 $ 4,788

Net income per share $ 0.08

Weighted average number of
 shares outstanding 62,687

 For The Six Months
 Ended June 30,
 1995 1996
 (in thousands)

Net sales $ 64,420 $ 140,934
Cost of goods sold 36,368 81,687
Selling, general and 18,017 39,987
administrative expenses
 Income before merger costs
 and income taxes 10,035 19,260
Merger costs 1,573
Provision for income taxes 318 7,599
 Net income $ 9,717 $ 10,088

Pro forma adjustment to income 3,997
tax provision(b)

Pro forma net income $ 5,720

Net income per share $ 0.16

Weighted average number of
 shares outstanding 62,687

(b) Reflects the income tax provision that would have been provided
had the Company been a C Corporation for the entire period ended June
30, 1995.

CONTACT: Allyne Mills Dawn Berrie

212/726-4202 212/726-6500

(media) (investors)
COPYRIGHT 1996 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Aug 1, 1996
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