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Atari Announces Downstream Panic!

Highly Addictive Fish-Out-Of-Water Puzzle Game to Hit PSP(R) System

NEW YORK, Sept. 19: Atari, Inc. (Nasdaq: ATAR), one of the world's most recognized brands and a third-party video game publisher, today announced that it will publish Downstream Panic! The game will offer unpredictable, fast-paced, tactical puzzle-action that places players in the position of a sea-creature preservationist out to save the world from a fantastic cyclone that has blasted the world's fish into the Earth's atmosphere. It is up to the player to protect fish from land, predators and other obstacles through the use of a variety of innovative tools as they guide fish on their descent back into the ocean. Developed by Eko Software, Downstream Panic! for the PSP ® (PlayStation ® Portable) system is expected to ship early 2008.

"Fans of fast-paced puzzle games will fall in love with this new twist on the fish-out-of-water idea," said Donny Clay, producer, Atari, Inc. "We are thrilled to deliver this fun and interesting spin on the puzzle genre and look forward to publishing this title for the PSP system."

In Downstream Panic! players will save their scaly sea-friends in more than 80 different levels with five different customizable environments. Three different game modes (adventure, free play and survival) bring more of a challenge to the aquatic mix. With more than 10 hours of standard gameplay and downloadable content, Downstream Panic! aims to offer more than just the average PSP system puzzle fare.

For more information on Atari and its entire product line-up please visit www.atari.com.

About Atari, Inc.

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre- defining franchises such as Test Drive ® and mass-market and children's franchises such as 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 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, and GameStop; delays in product development and related product release schedules; inability to secure capital; 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.

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.

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