Take-Two Interactive Software, Inc. Announces Final Settlement with SEC
New York, NY - June 9, 2005 - Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced that the Securities and Exchange Commission (SEC) has accepted the Company's previously announced settlement offer, thereby concluding the SEC's investigation of Take-Two.
Without admitting or denying any wrongdoing, the Company has agreed to consent to the entry of an order enjoining it from future violations of specified provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934 ('34 Act), including section 10(b)(5) of the '34 Act and Rule 10b-5 thereunder. In addition, the Company has agreed to pay a $7.5 million civil penalty which Take-Two previously recorded as an expense in its fourth fiscal quarter ended October 31, 2004.
The SEC investigation related to the Company's accounting, which was the subject of the Company's previously reported restatements of its financial statements in February 2002 and February 2004. Certain of the Company's employees and former employees also reached settlements with the SEC.
aul Eibeler, Take-Two's President and Chief Executive Officer, commented, "We have cooperated fully and are pleased to have resolved Take-Two's outstanding issues with the SEC. The comprehensive company-wide changes we have instituted in recent years, including implementing a series of internal controls and procedures designed to ensure that our financial reporting processes meet the highest standard of integrity and professionalism, and making key additions to our senior executive team and Board of Directors, have made our company much stronger. We remain focused on delivering shareholder value through our leadership in the global interactive entertainment software market."
b>About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is an integrated global developer, marketer, distributor and publisher of interactive entertainment software games and accessories for the PC, PlayStation® game console, PlayStation®2 computer entertainment system, PSP? handheld entertainment system, PlayStation®3 computer entertainment system, the Xbox® video game and entertainment system from Microsoft, the Xbox 360? video game and entertainment system from Microsoft, Nintendo GameCube?, Nintendo DS? and Game Boy® Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K Games, 2K Sports and Global Star Software; and distributes products in North America through its Jack of All Games subsidiary. Take-Two also manufactures and markets video game accessories in Europe, North America and the Asia Pacific region through its Joytech subsidiary. The Company maintains sales and marketing offices in Cincinnati, New York, Toronto, London, Paris, Munich, Madrid, Vienna, Milan, Sydney, Breda (Netherlands) and Auckland. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com.
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Safe Harbor Statement under the Private Securities Reform Act of 1995: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in the Company's Form 10-Q for the quarter ended January 31, 2005 in the section entitled "Cautionary Statement and Risk Factors".
Safe Harbor Statement
Safe Harbor Statement under the Private Securities Reform Act of 1995: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These important factors are described in the Company's Form 10-Q for the quarter ended January 31, 2005 in the section entitled "Cautionary Statement and Risk Factors".