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Atari Wins 2006 InfoWorld 100 Award for Innovative Outsourcing Project

Atari Leverages Rackspace Infrastructure to Improve TCO and Optimize Resources

NEW YORK, Nov. 28: Atari Inc., one of the world's most recognized brands and third-party video game publisher, was honored as a 2006 InfoWorld 100 Award winner. The annual awards honor IT projects that demonstrate the most creative use of cutting-edge technologies to further their business goals. Atari was recognized in the category of Computing and Technology for their IT outsourcing project, which improved total cost of ownership by outsourcing their Linux infrastructure.

Atari moved key systems to Rackspace Managed Hosting, a leading global provider of managed hosting services, thereby reducing infrastructure costs by migrating from a proprietary UNIX system to a more flexible open source solution. By hosting its entire internal infrastructure with Rackspace and redeveloping much of its systems on open source software, Atari cut capital expenditure and human resources costs. With Rackspace managing Atari's entire back-end systems such as Microsoft Exchange e-mail, Oracle EBusiness Suite -- Financials, Order Management, Purchasing and Projects and RMS (a proprietary Royalty Management System) to name a few, Atari's large IT staff can now be redeployed to focus solely on revenue-generating roles such as game development.

"We realized that hosting our backend applications internally was not strategic to our core business," said Jim O'Keefe, head of IT for Atari. "With Rackspace handling our entire IT infrastructure, we have now implemented systems that are more cost efficient."

"A reliable internal system is critical to the operation of any business," said John Engates, chief technology officer, Rackspace Managed Hosting. "Atari's innovative approach to having us host their entire infrastructure had an immediate impact on their bottom line. Our managed hosting model allowed Atari to move all of its data and applications to new hardware without the steep, upfront capital expenditures typical of an infrastructure upgrade."

About Rackspace Managed Hosting

A recognized leader in the global managed hosting market, Rackspace Managed Hosting is a world-class service organization delivering enterprise- level Web infrastructure and managed services to businesses of all sizes. Serving more than 10,000 customers across seven data centers worldwide, Rackspace integrates the industry's best technologies for each customer need and delivers it as a service via the company's award-winning Fanatical Support TM . Through trusted partnerships with its customers, Rackspace serves as an extension of their IT department, enabling customers to focus on their core business. Founded in 1998, Rackspace has grown more than 50 percent a year since the company's inception. For more information, please visit www.rackspace.com, or call 800-961-2888.

About InfoWorld Media Group

InfoWorld Media Group helps senior technologists connect technology and business strategy for maximum impact at their organizations. Through integrated channels including online, events, demand generation and a weekly print magazine, InfoWorld reaches the most influential senior-level information technologists -- those who drive their enterprises' strategies and technology purchases. Powered by a continued investment in an independent Test Center, InfoWorld analysts and editors provide both hands-on analysis and evaluation, as well as expert commentary on issues surrounding emerging technologies and products. Visit InfoWorld at www.InfoWorld.com.

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 The Matrix TM (Enter The Matrix and The Matrix: Path of Neo) 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 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; 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.

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