Atari Announces First Ever DUNGEONS & DRAGONS(R) Game for PSP(TM) System

NEW YORK, May 2: Atari, Inc. (Nasdaq: ATAR) today announced the development of DUNGEONS & DRAGONS^®: Tactics^TM for the PSP^TM (PlayStation^®Portable) system, marking the first time the highly- coveted D&D^® license has ever graced a next-generation portable system. D&D^®: Tactics authentically utilizes the D&D 3.5 rule-set created by Wizards of Coast, a subsidiary of Hasbro, Inc. (NYSE: HAS) and allows players to take a party of six adventurers into a wide variety of dangerous environments to experience deep and exciting turn-based action. Developed by Kuju Entertainment, D&D: Tactics is not yet rated and is planned for a 2006 holiday season release. DUNGEONS & DRAGONS is under license from the Hasbro Properties Group, the intellectual property development arm of Hasbro, Inc.

"DUNGEONS & DRAGONS: Tactics will offer role-playing game fans and PSP system owners the only chance to bring this fantasy-based game wherever they go," said Rick Mehler, Director of Marketing, Atari, Inc. "With wireless cooperative game modes, downloadable content, customizable characters and the acclaimed 3.5 rule-set, Atari is thrilled to extend the D&D world to the handheld market."

"The PSP system has proven to be a very exciting platform to work with and an ideal choice to expand the world of DUNGEONS & DRAGONS within the interactive gaming space," said Jerry Chu, Senior Licensing Manager, Hasbro. "Making full use of the PSP system's unique capabilities, gamers will be granted an accurate D&D experience and story combined with a robust multiplayer system and the ability to extend gameplay thru downloadable content."

D&D: Tactics offers an original, intriguing DUNGEONS & DRAGONS storyline. Players take on the role of a mortal child caught in a conflict of two competing dragons striving for godhood. Alignment is critical, as it affects the end of the story and allows players to change from good to evil, or the other way around, depending on which quests they choose. Gamers will play through a series of adventures, completing various objectives along the way. D&D: Tactics offers all the DUNGEONS & DRAGONS base character classes including Barbarian, Bard, Cleric, Druid, Fighter Monk, Paladin, Ranger, Rogue, Sorcerer and Wizard. Five Prestige Classes are available, as are two Psionic classes, the Psion and the Psychic Warrior. Players will be able to customize their characters and store as many as their memory stick can handle.

D&D: Tactics will take full advantage of the PSP system's wireless capability and offer gamers a multiplayer mode. The co-operative mode allows a group of gamers to play the single-player campaign with their friends as a team. In Deathmatch mode a series of special arenas, such as the randomly- generated and populated Dungeon Bash, allows players to fight one another with their saved parties. D&D Tactics also features the ability to utilize downloadable content helping extend the play in the form of new dungeon maps.

About THE HASBRO PROPERTIES GROUP

The Hasbro Properties Group (HPG), the intellectual property development arm of Hasbro, Inc., (NYSE: HAS), translates one of the industry's richest portfolios of brands into a world of fun and excitement for children and adults globally. Through a host of publishing, digital media, lifestyle and entertainment platforms, HPG is able to surround fans worldwide with consumer products that expand Hasbro's core brands, such as TRANSFORMERS, LITTLEST PET SHOP, MY LITTLE PONY, MONOPOLY, G.I. JOE, TONKA and PLAYSKOOL.

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.

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.

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). Certain limitations apply to Wi-Fi compatible connectivity. See manual for details. Player responsible for Wi-Fi compatible fees.

All other trademarks are the property of their respective owners.

DUNGEONS & DRAGONS, D&D, and TACTICS are trademarks of Wizards of the Coast, Inc. in the USA and other countries. Used with permission.

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