'Alone In The Dark' Brings Action Survival To PlayStation(R)3

New York, NY, May 10, 2006 - Atari, Inc. (Nasdaq: ATAR) today announced that Alone in the Dark* will launch for PLAYSTATION®3 computer entertainment system simultaneously with versions for Xbox 360 video game and entertainment system from Microsoft and Windows platform. Sony Computer Entertainment's next-generation console will play host to the latest chapter of the franchise that gave birth to the modern survival horror gaming genre. Alone in the Dark will deliver an edge-of-the-seat survival experience facilitated by state-of-the-art real-time physics and unparalleled environmental interaction within a meticulously detailed, open game world.

Developed by Eden Games, Alone in the Dark will propel the survival horror genre into the future with the new level of available technology that allows for unprecedented advances in gameplay and unmatched action-orientated gaming experiences in wide-open environments.

"The team is having a fantastic time bringing Alone in the Dark to life using the incredible processing power of the PlayStation 3 kits," said David Nadal, Game Director, Eden Games. "It's a very exciting time for us, when we begin to see how the powerful new generation of hardware can help us realize our ideas in a way that hasn't been possible before."

With this upcoming installment of the hugely successful Alone in the Dark franchise, Eden and Atari aim to re-establish Alone in the Dark as the genre-leader on PlayStation 3 system, Xbox 360 and the Windows platform.

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About Eden Games
The second largest game development studio in France, Eden Games has achieved international recognition through the creation of games including V-Rally 1, 2 and 3, Need For Speed: Porsche, Kya: Dark Lineage and Titeuf. Base in Lyon, France, Eden Games is a wholly owned subsidiary of Infogrames Entertainment SA.

About Infogrames Entertainment and Atari
Infogrames Entertainment (IESA), the parent company of the Atari Group, is listed on the Paris Euronext stock exchange (ISIN code: FR-0000052573) and has two principal subsidiaries: Atari Europe, a privately-held company, and Atari, Inc., a United States corporation listed on NASDAQ (ATAR). The Atari Group is a major international producer, publisher and distributor of interactive entertainment software for all market segments and in all existing game formats (Microsoft, Nintendo and Sony) and on CD-ROM for PC. Its games are sold in more than 60 countries. The Atari Group's extensive catalogue of popular games is based on original franchises (Driver, Alone in the Dark, V-Rally, Test Drive, Roller Coaster Tycoon, etc.) and international licenses (Matrix, Dragon Ball Z, Dungeons & Dragons, etc.). For more information: http://www.atari.com

Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, GameStop and EB Games; delays in product development and related product release schedules; inability to secure capital; loss of our credit facility; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings, including our Annual Report on Form 10-K for the year ended March 31, 2005 and our quarterly reports on Form 10-Q, as amended.

The Company undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in the Company's expectations.

® 2006, Atari, Inc. All rights reserved. ATARI, the ATARI logo, and classic Atari game titles and logos are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

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*This title has not yet been concept approved by Sony Computer Entertainment America.

Contact: Andrea Schneider Tara Bruno
Atari, Inc. HighWater Group (For Atari)
212.726.4259 212.338.0077 x. 302
andrea.schneider@atari.com tara@highwatergroup.com