Infogrames Entertainment S.A. Announces Complete Redemption of Nexgen Financing

Business Wire, Dec 27, 2004

NEW YORK -- Infogrames Entertainment S.A. ("IESA"), the majority shareholder of Atari, Inc. (Nasdaq: ATAR), today announced it has redeemed the remaining $2.1 million of the $28.2 million Nexgen financing raised through its wholly owned subsidiary California US Holdings, Inc. ("CUSH").

On June 17, 2004, CUSH received $28.2 million from Nexgen Capital Limited and, in exchange, transferred 10.6 million Atari shares, with a one-year maturity date (the "Transaction").

The remaining amount due by CUSH to Nexgen, $2.1 million, was fully redeemed through the sale of 827,982 shares of Atari, Inc. by Nexgen. The CUSH payment obligations to Nexgen have been completely extinguished. Therefore, the Transaction has been terminated.

Upon the subsequent transfer of approximately 3.1 million shares of Atari, Inc. to CUSH from Nexgen, the underlying number of shares of Atari, Inc. held by Nexgen has now been reduced to zero and IESA holds approximately 60% of the outstanding shares of Atari, Inc.