Infogrames Entertainment S.A. Announces $28.2 Million Financing

Business Wire, June 18, 2004

NEW YORK -- Infogrames Entertainment S.A. ("IESA"), the majority shareholder of Atari, Inc. (Nasdaq: ATAR), today announced the closing of a financing through its wholly-owned subsidiary California US Holdings, Inc. ("CUSH"), in the aggregate amount of $28,161,020 with a one-year maturity date (the "Transaction").

On June 17, 2004, CUSH received $28,161,020 from Nexgen Capital Limited and, in exchange, transferred 10.6 million Atari shares, based on the volume-weighted average closing price of Atari stock on the Nasdaq National Market on June 15, 2004 (the "Initial Price"). At maturity, CUSH will redeem the loan and will receive in exchange the Atari shares. Alternatively, at maturity, CUSH will have the option to receive if positive (or pay if negative), the difference between the Atari stock price at maturity and the Initial Price. The financing bears interest and the lender is entitled to a portion of the upside if the Atari stock price at maturity exceeds 120% of the Initial Price. The Transaction also provides that CUSH will request the registration of some Atari shares.

Prior to the Transaction, IESA and its affiliates were the beneficial owners of 67% of Atari, Inc. During the one-year period of the Transaction, this ownership will be temporarily reduced to 58%.