Atari to Distribute First Titles With 1C

NEW YORK, Aug. 16: Atari, Inc. (Nasdaq: ATAR), one of the world's most recognized brands and a third-party video game publisher, today announced that it will distribute five new titles with 1C including You Are Empty, Death to Spies, Dawn of Magic and Fantasy Wars for Windows PC and Swashbucklers for Windows PC and PlayStation ® computer entertainment system in the U.S. this fall.

"1C has long been known for innovative gameplay and storylines," said Robert Stevenson, Vice President of Business Development, Atari, Inc. "We're thrilled to kick-off our 1C relationship with such compelling and original titles."

You Are Empty is an intense FPS (First Person Shooter) game that offers players an alternative approach to the history of the late 1950's taking place in the Soviet Union. Set in this alternate universe, Soviet Scientists attempt to create super humans capable of spreading communism around the world. However, something goes wrong when they lose control of their creation. As a result, whole cities start getting infected, and entire towns become overrun by mutants and monsters. Fighting against these mutants, the main hero tries to gain an understanding of what's happening around him and save the day.

Death to Spies is a third-person stealth action game set during World War II. As a soviet counterintelligence service officer, players will have to complete various missions in the heart of enemy territory, including stealing important documents, eliminating enemy officers or officials, kidnapping, and sabotage.

In the first action role-playing game (RPG) where players must rely solely on magic, Dawn of Magic will throw fans in the midst of a medieval world on the brink of destruction. Players will either choose to protect the medieval world from total annihilation, help aid in its destruction, or attempt to remain neutral in the struggle with almost limitless spell possibilities.

Set in a fantasy world rife with war, Fantasy Wars is a hex-based tactical strategy game with three interwoven campaigns and an in-depth storyline. In a world of Humans, Orcs, Dwarfs and Elven races, players will participate in castle sieges, reconnaissance operations all in sophisticated three-dimensional worlds. Experience epic real-time battles from afar or zoom in to see individual numbers in the ranks.

In Swashbucklers, players will become the captain of a privately owned vessel able to sail freely from the southern coasts of the United States to the North Caribbean and engage in naval combat and strong on-foot gameplay while slashing through various locations and confronting enemies. With an advanced role-playing system, gamers will be able to develop and master skills, weapons and moves while upgrading your ship at the same time.

You Are Empty, Death to Spies, Dawn of Magic, Fantasy Wars and Swashbucklers will arrive on shelves this fall 2007. More information about these 1C titles and Atari can be found at http://www.atari.com.

About Atari, Inc.

New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games for all platforms and is a third-party publisher of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining franchises such as Test Drive ® ; and mass-market and children's franchises such Dragon Ball Z ® . Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), an interactive games publisher in Europe. For more information, visit http://www.atari.com.

About 1C Company

1C Company specializes in distribution, publishing and development of mass-market software. Founded in 1991, 1C has become the leading publisher and distributor of computer games in Eastern and Central Europe. 1C Company is widely acknowledged as a game developer and has several internal studios. Internal developments of 1C include IL-2 Sturmovik, IL-2 Sturmovik: Forgotten Battles, Aces Expansion Pack, Pacific Fighters and Theatre of War. 1C Company works as a publisher and producer with over 30 independent development studios and has produced over 100 projects for PC and consoles.

For more information, please visit http://int.games.1c.ru.

Safe Harbor Statement

With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following: the loss of key customers, such as Wal-Mart, Best Buy, Target, and GameStop; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.

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

© 2007, Atari, Inc. All rights reserved. ATARI and the ATARI logo are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

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