Infogrames Entertainment: Fiscal 2006-2007 First Quarter Results (unaudited); Revenue from Ordinary Business at EUR 44.4 Million

-- Improved results by Atari, Inc.

-- Portable consoles account for 44% of sales

-- More than 15 new games to be released in 2006-2007 for next-generation consoles

Consolidated business during the first quarter (April-June 2006)

Infogrames Entertainment (IFG.PA) (FR0000052573) has announcedthat sales (reported as "revenue from ordinary business") for thefirst quarter of fiscal 2006-2007 amounted to EUR 44.4 million,compared with EUR 55.5 million the same period a year ago.

The company notes that, as reported by Atari in connection withthe sale of the Reflections studio and the Driver franchise, and asprescribed by International Financial Reporting Standards, the EUR44.4-million sales figure does not include revenue from gamesdistributed under the sold franchise. Those sales, treated as"discontinued operations," amounted to EUR 0.6 million for thequarter.

European and Asian operations accounted for 63% of consolidatedrevenue in the first quarter of the current fiscal year. Subsidiariesin the United States (including Atari, Inc. and Atari Interactive,Inc.) were responsible for the other 37% of business volume.

Because of the cyclical nature of the games market, sales aretraditionally lower during the period covered by the first quarter andthe Company's performance reflects its continued efforts to pare downits catalog, as well as the absence of major releases during thequarter.

Predominance of games for portable consoles

A breakdown of sales by format shows a significant growth in gamesfor portable consoles, which represented 44% of the group's totalsales for the quarter.

During the period, games for Sony's PSP accounted for 23% ofInfogrames Entertainment's sales, with another 10% in the Nintendo DSformat and 11% for GameBoy Advance.

These ratios are indicative of the Group's strategic orientation.

Atari, Inc.'s first quarter results (April-June 2006)

The financial statements of Atari, Inc., InfogramesEntertainment's principal US subsidiary, reported noticeably improvedresults for the first quarter of the current fiscal year, reflectingthe positive impact of an action plan started in Fiscal 2006. Theplan's objective is to adapt the company's structural budget to itssize and to position Atari to improve profitability.

The net loss of US$ 7.1 million for the period represents a sharpimprovement from the US$ 32.8-million loss of the previous year.

Atari, Inc. reported sales of US$ 19.5 million, down from US$ 23.9million the same period a year ago.

The 2006/2007 Game Catalog

Several major titles are to be released in fiscal 2006-2007,principally for next generation consoles (Xbox 360, PS3, PSP and NDS).The new games, which earned critical accolades at the recent E3 tradeshow, include:

-- The eagerly awaited Test Drive Unlimited (Xbox 360, PC, PS2, PSP) is the first-ever "massively open" online racing game and a likely future reference for the genre on next-generation consoles.

-- Arthur and the Minimoys (PS2, PSP, PC, GBA, Nintendo DS, Mobile), based on the forthcoming eponymous Luc Besson animated feature film, will be released in various countries at the same time as the movie.

-- Neverwinter Nights 2 (PC), marks the return of the celebrated RPG, which sold more than 2 million worldwide and has one of the largest and most active followings in the role-playing genre.

-- Dragon Ball Z: Budokai Tenkaichi 2 (PS2 and Wii) is the sequel to Dragon Ball Z: Budokai Tenkaichi, the best-selling DBZ game in 2005; more than ten million DBZ-franchise games have been sold worldwide since 2002.

-- Alone in the Dark (Xbox 360, PS3, PC), to be released in 2007/2008, is the latest title of the seminal "survival horror" genre franchise for PC and next-generation consoles; the original version sold more than six million copies worldwide.

-- Hot Pxl (PSP), a concept based on more than 200 mini games, will take full advantage of PSP's unique features, such as the possibility of downloading exclusive bonuses via the system's online interface.

-- Dungeons & Dragons: Tactics (PSP)

-- Earthworm Jim (PSP and Nintendo DS)

Other games scheduled to be released include:

-- Asterix and Obelix: Mission Wifix (Nintendo DS and PSP), Totally Spies 2: Undercover! (Nintendo DS and PSP), Battlezone (PSP), Saint Seiya: Knights of the Zodiac: Hades (PS2), Point Blank (NDS), Naruto: Ultimate Ninja (PS2), One Piece: Grand Adventure (PS2), Thrillville (PS2, PSP, Xbox), Dora the Explorer: Fairy Tale Adventure (PC), Dora the Explorer: Back Pack Adventure (PC), Dora the Explorer: Dance to the Rescue (PC), Age of Pirates: Caribbean Tales (PC), Dig Dug: Digging Strike (NDS), Rebelstar: Tactical Command (GBA), Rainbow Islands Revolution (PSP).Forthcoming investor events and financial announcements:

-- Late September 2006: Shareholders' Meeting - first notice

-- November 8, 2006 (to be confirmed): Fiscal 2006-2007 second quarter revenue

About Infogrames Entertainment and Atari

Infogrames Entertainment (IESA), the parent company of the AtariGroup, is listed on the Paris Euronext stock exchange (ISIN code:FR-0000052573) and has two principal subsidiaries: Atari Europe, aprivately-held company, and Atari, Inc., a United States corporationlisted on Nasdaq (ATAR).

The Atari Group is a major international producer, publisher anddistributor of interactive entertainment software for all marketsegments and in all existing game formats (Microsoft, Nintendo andSony) and on CD-ROM for PC. Its games are sold in more than 60countries.

The Atari Group's extensive catalogue of popular games is based onoriginal franchises (Alone in the Dark, V-Rally, Test Drive, RollerCoaster Tycoon, etc.) and international licenses (Matrix, Dragon BallZ, Dungeons & Dragons, etc.).

For more information: http://www.atari.com
Breakdown of sales by format

June 30, 2006 June 30, 2005
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PC 38% 45%
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PSP 23% -
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PS2 12% 32%
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NDS 10% -
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GBA 11% 12%
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XBox 360 4% -
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Xbox - 5%
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GameCube - 3%
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Other formats 2% 3%
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