ATARI Appoints David Pierce President and Chief Executive Officer; Entertainment Industry Veteran to Oversee Interactive Entertainment Company

In this role, Mr. Pierce assumes responsibility for theoperational management of Atari and will partner with Mr. Bonnell toachieve strategic objectives of the Company. Mr. Bonnell will continueto serve as the Company's Chairman and Chief Creative Officer (CCO),steering the creative vision for Atari.

Mr. Pierce has a proven record in establishing and growingcompanies. With more than 20 years of executive management experiencewith major entertainment companies such as Universal Pictures, MGM,Sony Pictures and Sony Music Entertainment, he brings an effectivemanagement style focused on the successful execution of strategicobjectives and improving profitability. Mr. Pierce has successfullylaunched and established significant market share for numerous mediadevices. Additionally, his career covers the development and launch ofbranded entertainment properties, franchise development and deliveryacross multiple distribution channels.

"Atari has been a cornerstone of a global cultural movement thatforever changed how we experience entertainment. It's an honor for meto have the opportunity to contribute to Atari's exciting future,"stated Mr. Pierce. "There's a heritage of expectation that demands ahigh level of responsibility to our consumers and the interactiveentertainment industry. I look forward to collaborating with thegifted and passionate individuals at Atari to build on that heritageand raise the bar on what consumers can expect."

Mr. Bonnell commented, "David has spent his career in theentertainment business and has a clear understanding and appreciationfor our consumers. His leadership skills, first-hand operationalexecution and keen focus on profitability and investment value makehim the ideal person to lead Atari."

"With David as my senior partner, we will strengthen thecapabilities of Atari. Our skill sets are complimentary and we share apassion for providing consumers with compelling and uniqueentertainment experiences. David's track record is stellar and we areprivileged to have an executive of his caliber and reputation leadingAtari."

As Executive Vice President and General Manager, Mr. Piercespearheaded the complete restructuring and turnaround of Sony Wonder,a division of SONY BMG Music Entertainment. Under his leadership, thecompany achieved record revenue and multiple years of record profits.Prior to Sony Wonder, Mr. Pierce was the Senior Vice President ofColumbia Tristar Home Video, a division of Sony PicturesEntertainment, from 1989 through 1994. Mr. Pierce was recruited tohelp devise and execute a complete reorganization of the company.Specific areas of focus included the reorganization of personnel,establishing sound financial controls, development of distributionstrategies and establishing sales and marketing initiatives. Over afive year period, Mr. Pierce increased revenues, achieved record netcontribution results and developed strategic distributionrelationships with several leading entertainment companies includingSony Electronic Publishing, Epic Home Video and New Line Pictures. In1984, Mr. Pierce was recruited by New World Pictures to launch thecompany's video division, New World Home Entertainment. Through uniqueadvertising campaigns and creative sales promotion, he established NewWorld as the industry leader amongst independent production companies.

About Atari

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactivegames for all platforms and is one of the largest third-partypublishers of interactive entertainment software in the U.S. TheCompany's 1,000+ titles include hard-core, genre-defining franchisessuch as The Matrix(TM) (Enter The Matrix and The Matrix: Path of Neo)and Test Drive(R); and mass-market and children's franchises such asNickelodeon's Blue's Clues(TM) and Dora the Explorer(TM), and DragonBall Z(R). Atari, Inc. is a majority-owned subsidiary of France-basedInfogrames Entertainment SA (Euronext - ISIN: FR-0000052573), thelargest interactive games publisher in Europe. For more information,visit www.atari.com.

Safe Harbor Statement

With the exception of the historical information contained in thisrelease, the matters described herein contain certain "forward-lookingstatements" that are made pursuant to the Safe Harbor provisions ofthe Private Securities Litigation Reform Act of 1995. Forward-lookingstatements in this release are not promises or guarantees and aresubject to risks and uncertainties that could cause our actual resultsto differ materially from those anticipated. These statements arebased on management's current expectations and assumptions and arenaturally subject to uncertainty and changes in circumstances. Wecaution you not to place undue reliance upon any such forward-lookingstatements. Actual results may vary materially from those expressed orimplied by the statements herein. Some of the factors which couldcause our results to differ materially include the following: the lossof key customers, such as Wal-Mart, Best Buy, Target, GameStop and EBGames; delays in product development and related product releaseschedules; inability to secure capital; adapting to the rapidlychanging industry technology, including new console technology;maintaining relationships with leading independent video game softwaredevelopers; maintaining or acquiring licenses to intellectualproperty; fluctuations in the Company's quarterly net revenues andresults of operations based on the seasonality of our industry; thetermination or modification of our agreements with hardwaremanufacturers; and other factors described in our SEC filings.

The Company undertakes no duty to update any forward-lookingstatements to conform the statement to actual results or changes inthe Company's expectations.