Foundation 9 Entertainment Acquires Shiny Entertainment

LOS ANGELES, CA - October 2, 2006 - Foundation 9 Entertainment, the largest independent game developer in North America, announced today that it acquired the non-game assets of Shiny Entertainment Studio from Atari, Inc. in an acquisition funded by Foundation 9's recent investment from Francisco Partners.

"Shiny Entertainment fits well with the current studios of Foundation 9 Entertainment and aligns with our long-term goals for the future," said Jon Goldman, Chairman and CEO. "The studio has tremendous talent and experience working with big Hollywood franchises and will be working with us on a major, as-yet-undisclosed day and date release. The Shiny team will only add to our capabilities and technology base."

Under the terms of the deal, the Shiny team will remain intact and will co-locate with The Collective, one of the Foundation 9 studios, in 2007.

Shiny Entertainment was started in 1993 and has shipped eight products including two games based on The Matrix film franchise. The studio develops for all platforms and is perhaps best known for its original property, Earthworm Jim (which remains an Atari property), which debuted on the Sega Genesis and Super Nintendo in 1994. Shiny was acquired by Atari in 2002.

Shiny will join current F9E studios - The Collective, Backbone Entertainment, Pipeworks, ImaginEngine and Digital Eclipse - solidifying Foundation 9's presence as the largest independent developer in North America. The company develops in all genres for all platforms and age groups, and has shipped more than 300 titles, including many bestsellers.

The company is currently at work on more than 20 titles, including two new editions of its original property, Death, Jr., to be published by Konami; Dirty Harry to be published by Warner Bros. Interactive Entertainment; and Sonic Rivals to be published by Sega. The company's Backbone studio just recently shipped MechAssault: Phantom War for the Nintendo DS, published by Majesco Entertainment.

About Foundation 9 Entertainment

Foundation 9 Entertainment is a premier developer of interactive entertainment products and properties, and the largest independent games developer in North America. With studios in the San Francisco Bay Area, Vancouver, Boston, Los Angeles, Newport Beach, Eugene, Charlottetown, and Honolulu, Foundation 9 Entertainment is a development powerhouse, uniquely positioned to maximize the value of entertainment properties across all entertainment genres.

Through its studios and core brands, Backbone Entertainment, The Collective, Shiny, Pipeworks, ImaginEngine, and Digital Eclipse, Foundation 9 Entertainment has worked with the largest names in the game publishing world, including Electronic Arts, Konami, Sega, Capcom and Take-Two Interactive. The company creates titles for all age groups and all platforms, through licensed and original IP, as well as contract development and its studios have developed more than 300 titles, including more than 40 in 2005 alone. For more information, please visit: www.F9E.com.

About Atari, Inc.

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.

Contact:

Nicole Tanner

Foundation 9 Entertainment

nicolet@f9e.com