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Atari Announces the Next Round of Kao the Kangaroo for Multiple Platforms

Pugnacious Kangaroo Makes His Second Appearance in Atari's Action Platformer

NEW YORK, Feb. 1: Atari, Inc. (Nasdaq: ATAR) today announced the upcoming multiplatform release of Kao the Kangaroo Round 2 for the PlayStation®2 computer entertainment system, Xbox® video game and entertainment system from Microsoft, Nintendo GameCubeTM and for Windows platform. Kao Challengers will ship simultaneously for the PSPTM (PlayStation®Portable) system. Developed by Tate Interactive, the game is an action, 3D platformer starring Kao the yellow kangaroo. Kao the Kangaroo Round 2 and Kao Challengers are scheduled for release in March 2006 for a suggested retail price of $19.95 for all platforms.

"For consumers looking for accessible, fun, pick-up-and-play games, Kao the Kangaroo fulfills that need," said Emily Anadu, brand manager, Atari, Inc. "With colorful graphics, a lovable main character, witty humor and addictive gameplay, Kao the Kangaroo is sure to leap into the minds of gamers."

Kao the Kangaroo Round 2 places gamers in the role of Kao, a brave kangaroo straight out of Australia. Players are challenged to save the world of animals from an evil hunter and his wicked henchmen. With over 30 challenging enemies to overcome, Kao players are equipped with an array of fighting techniques from boomerang throwing to devastating tail attacks. Kao the Kangaroo Round 2 features an action-packed single player mode, and offers various gameplay experiences, including platform action, fighting and racing. The multi-player mode in Kao Challengers is enhanced with wireless capabilities for the PSP system. Quick to pick up and play, but with a depth of gameplay that keeps players absorbed, Kao the Kangaroo Round 2 presents a rich and colorful gaming universe with over 21 vividly rendered levels set across five diverse worlds ranging from Kao's natural habitat of Australia to the rather less sun-baked Arctic. Kao Challengers includes a bonus world with 4 additional levels set in a mysterious swampland ruled by an evil witch and her magical minions.

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 DRIVERTM, The MatrixTM (Enter The Matrix and The Matrix: Path of Neo), StuntmanTM and Test Drive®; and mass-market and children's franchises such as Nickelodeon's Blue's CluesTM and Dora the ExplorerTM, 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.

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.

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 DuoTM may be required (sold separately).

Xbox is a registered trademark of Microsoft Corporation in the United States and/or other countries.

TM,® and Nintendo GameCube is a trademark of Nintendo. ® 2001 Nintendo. All rights reserved.

All other trademarks are the property of their respective owners.

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