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MGM And EON Grant Activision Rights To James Bond Video Game License

FOR IMMEDIATE RELEASE



Santa Monica, CA., May 3, 2006
- MGM Interactive and EON Productions Ltd. have awarded Activision Inc. (Nasdaq: ATVI) the rights to develop and publish interactive entertainment games based on the James Bond license through 2014.

This marriage of best-in-class intellectual property and next-generation gaming expertise continues the Bond franchise's long legacy of providing thrills to audiences around the globe. Since the initial release of Dr. No in 1962, James Bond films have grossed more than $3.6 billion theatrically worldwide and approximately 30 million units of video games based on the world of James Bond have been sold to date. James Bond continues to delight audiences worldwide with a quintessential blend of action, glamour and sophisticated style synonymous with top secret agent 007.

"James Bond is the ultimate action movie franchise, and we look forward to establishing a long-term relationship with MGM and EON," said Mike Griffith, president and CEO of Activision Publishing Inc. "The James Bond franchise creates tremendous global expansion opportunities for Activision as it is one of the few video game licenses that appeals equally to domestic and international consumers. James Bond storylines are rich with style, drama and action, all of which lend themselves perfectly to developing extraordinary games that capture the thrill of being the most celebrated secret agent in the world."

Under the terms of the agreement, Activision will obtain the worldwide rights to create video games for all current and next-generation consoles, PC and hand-held platforms. The license will grant Activision the right to develop and publish games based on all of the James Bond movies, as well as non-movie based games.

"MGM Interactive continues to work with best in class publishing and development teams, to ensure we deliver both memorable and fully immersive interactive gaming experiences for both core and mass-market gamers," said Travis Rutherford, MGM's executive vice president, Consumer Products and Location-Based Entertainment. "Activision's proven expertise in developing cutting edge games, their core competency in managing large movie franchises combined with the global appeal of the James Bond property, will create a new benchmark for the next-generation gaming experience. We are excited to be partnered with Activision and look forward to a long and mutually successful partnership."

"Activision's track record of developing engaging and sophisticated games across all platforms makes it the ideal partner to introduce the Bond videogame experience to a new generation of game players, as well as to provide new thrills and excitement for the legions of people who are already fans of the Bond films and games" said David Pope, CEO of EON Productions Limited, maker of the James Bond films.

About Metro-Goldwyn-Mayer Inc.

MGM Interactive manages Metro-Goldwyn-Mayer Studio Inc.'s business, development and production of interactive products for a variety of multi-media platforms, as well as talent and developer relationships.

Metro-Goldwyn-Mayer Inc., through its operating subsidiaries is actively engaged in the worldwide production and distribution of motion pictures, television programming, home video, interactive media, music, and licensed merchandise. The company owns the world's largest library of modern films, comprising around 4,000 titles. Operating units including Metro-Goldwyn-Mayer Studios Inc., Metro-Goldwyn-Mayer Pictures Inc., United Artists Films Inc., MGM Television Entertainment Inc., MGM Networks Inc., MGM Distribution Co., MGM International Television Distribution Inc., Metro-Goldwyn-Mayer Home Entertainment LLC, MGM ON STAGE, MGM Music, MGM Consumer Products and MGM Interactive. In addition, MGM has ownership interests in international TV channels reaching nearly 110 countries. Under the supervision of new Chairman and CEO Harry Sloan, MGM is revitalizing all areas of the company. As a result, the studio is now being positioned as an independent, vertical integrated multi-media company.

MGM ownership is currently as follows: Providence Equity Partners (29%), Texas Pacific Group (21%), Sony Corporation of America (20%), Comcast (20%), DLJ Merchant Banking Partners (7%) and Quadrangle Group (3%). For more information, visit www.mgm.com.

About EON Productions

EON Productions/Danjaq LLC is owned by the Broccoli family and has produced 20 James Bond film since 1962. The Bond films make up the most successful franchise in film history and include such blockbuster films, Goldeneye, Tomorrow Never Dies, The World is Not Enough and Die Another Day produced by Michael G. Wilson and Barbara Broccoli. EON Productions and Danjaq LLC are affiliate companies and control all worldwide merchandising of the James Bond franchise.

About Activision

Headquartered in Santa Monica, Calif., Activision Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted net revenues of $1.4 billion for the fiscal year ended March 31, 2005. Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia, Spain and the Netherlands. More information about Activision and its products can be found on the company's World Wide Web site, which is located at www.activision.com.

The statements made in this press release that are not historical facts are "forward-looking statements". These forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties. The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. Such factors include, without limitation, product delays, retail acceptance of our products, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities. These important factors and other factors that potentially could affect the Company's financial results are described in our filings with the Securities and Exchange Commission, including the Company's most recent Annual report on Form 10-K and Quarterly Report on Form 10-Q. Readers of this press release are referred to such filings. The Company may change its intention, belief or expectation, at any time and without notice, based upon any changes in such factors, in the Company's assumptions or otherwise. The Company undertakes no obligation to release publicly any revisions to any forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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