Activision Publishing Signs Exclusive Worldwide Distribution Deal with Mattel

SANTA MONICA, Calif., May 23, 2006: Activision Publishing, Inc., a wholly owned subsidiary of Activision, Inc. (Nasdaq:ATVI), announced today it has signed a multi-year agreement which grants the company exclusive worldwide distribution rights to new video games on all platforms based on Mattel, Inc.'s (NYSE:MAT) Barbie^® brand. The video games are expected to be available at retail stores worldwide this fall

The first five games Activision will distribute under the terms of the agreement are games based on Mattel Entertainment's upcoming movies, including "The Barbie Diaries^TM" for the PC and Nintendo^® Game Boy^® Advance, and "Barbie^TM In The 12 Dancing Princesses" for the Sony PlayStation^® 2 computer entertainment system, PC and Nintendo^® Game Boy^® Advance. Activision will also distribute titles based on some of Mattel's best-selling video games from past years, including "Barbie^TM Fashion Show," "Barbie^TM and the Magic of Pegasus" and "Barbie^TM Beauty Boutique^TM."

"Barbie is one of the most recognized brands in the world and its video games have sold more than 15 million units to date. Activision is excited to partner with Mattel to expand this classic property to a new generation of consumers," said Dave Oxford, General Manager of Activision Publishing, Inc.

"We are thrilled to be partnering with Activision to distribute video games based on the wildly popular Barbie^® entertainment portfolio," said Matt Turetzky, Vice President, Marketing, Mattel. "As industry leaders, both Mattel and Activision are committed to delivering quality products that will further engage girls with the Barbie brand and provide a premier gaming experience."

About Mattel

Mattel, Inc., (NYSE:MAT) is the worldwide leader in the design, manufacture and marketing of toys and family products, including Barbie^®, the most popular fashion doll ever introduced. The Mattel family is comprised of such best-selling brands as Hot Wheels^®, Matchbox^®, American Girl^® and Tyco^® R/C, as well as Fisher-Price brands (www.fisher-price.com), including Little People^®, Rescue Heroes^®, Power Wheels^® and a wide array of entertainment-inspired toy lines. With worldwide headquarters in El Segundo, Calif., Mattel employs more than 25,000 people in 42 countries and sells products in more than 150 nations throughout the world. The Mattel vision is to be the world's premier toy brands -- today and tomorrow.

About Activision

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 and the Netherlands. 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, 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.