Atari Announces BattleZone(R) for PSP(TM) System

NEW YORK, May 4: Atari, Inc. (Nasdaq: ATAR) today announced the development of BattleZone for the PSP^TM (PlayStation^®Portable) system, a modern update to the 1980 classic arcade game. BattleZone immerses players in an interactive world with relentless onslaughts of quick, action-oriented battles. In development by Paradigm Entertainment, BattleZone for the PSP system will blast onto global terrain in November 2006.

Set in futuristic international military environments, BattleZone puts players in control of highly maneuverable hover tanks, challenging them in close combat scenarios against their rivals. BattleZone features fast and furious gameplay, photo-realistic environments, eight unique customizable team vehicles, an assortment of high-powered weapons and multiplayer battles. The four-player WiFi mode lets players go head to head, while unlockable weapons, vehicles and upgrades add even greater depth to the gameplay experience. In addition, extra game content will be available through the BattleZone web site, offering gamers news, leader boards and an exclusive online level builder tool that allows players to customize game maps. The extra content can then be downloaded to the players' PSP system through a local PC-USB connection.

"The BattleZone arcade game broke the mold for vehicle action combat in 1980, and today's version will reinvent this classic property into a modern day must-have," said Stephen Baer, Senior Product Manager, Atari, Inc. "BattleZone for the PSP system offers the fast-paced action and addictive gameplay that meets the demands of today's on-the-go generation."

BattleZone provides players with six popular and well-known game modes, including Deathmatch, Capture the Flag, Team Deathmatch, Hotzone, Knockout, and Fox and Hound. For casual gamers, the single player mode offers an easy learning curve for pick-up and play gaming and a tournament progression to win upgrades and enhancements.

Designed to take advantage of the PSP system's high quality display, BattleZone's crisp environments depict military combat arenas from around the world. Specific sights include abandoned cities of Russia, jungles of China, desert canyons of the United States, Antarctica's frozen tundra and the Canary Islands. Players can fight their way through the compelling open play of ten worlds in BattleZone, two of which can be customized online and transferred to their PSP system.

Capitalizing on all the PSP system offers with quick action control, close combat gameplay, familiar game modes and WiFi capabilities, BattleZone will yet again redefine vehicle combat action for the next generation of today's portable gamers.

About Atari

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is one of the largest third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining franchises such as DRIVER^TM, The Matrix^TM (Enter The Matrix and The Matrix: Path of Neo), Stuntman^TM and Test Drive^®; and mass-market and children's franchises such as Nickelodeon's Blue's Clues^TM and Dora the Explorer^TM, and Dragon Ball Z^®. Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit http://www.atari.com .

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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.

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® 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.

"PSP" is a trademark and "PlayStation" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Memory Stick Duo^TM may be required (sold separately).

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SOURCE Atari, Inc. -0- 05/04/2006 /CONTACT: Andrea Schneider Atari, Inc. 212.726.4259 andrea.schneider@atari.com; or Tara Bruno HighWater Group for Atari, Inc., 212.338.0077, ext. 302, tara@highwatergroup.com/ /Web site: http://www.atari.com / (ATAR)