cdv USA and Atari, Inc. Enter into Exclusive Third-Party Distribution Agreement

New York, NY and Cary, NC. October 22, 2008– cdv Software Entertainment USA, a premier North American publisher of video games, and Atari, Inc, a leading distributor and publisher of interactive entertainment, today signed a multi-year third-party distribution agreement. Through the deal, Atari will serve as the exclusive North American distributor for key console, handheld and multi-platform video games released under the cdv USA brand.

To launch the partnership, Atari, Inc will initially release several of cdv USA's key titles, including the upcoming action-RPG Sacred 2: Fallen Angel (Games For Windows®, Xbox 360® video game and entertainment system from Microsoft and PLAYSTATION®3 computer entertainment system), I Heart Geeks! and My Little Baby (Nintendo DS™). Sacred 2: Fallen Angel will ship for PC on November 11, 2008, and will be released for consoles on February 17, 2009.

Tom Gross, CEO and President of cdv Software Entertainment USA said, "Atari's extensive distribution network means consumers will have ready access to our exciting list of upcoming titles on console and handheld. Atari offers us the support of a leading sales and distribution partner, while our top-notch line-up that mixes hardcore and casual titles will significantly strengthen Atari’s third-party distribution business.”

“We are pleased to join forces with cdv in North America to release great titles such as Sacred 2: Fallen Angel to the marketplace. This new relationship further demonstrates Atari’s commitment to growing our retail distribution business in North America,” said Jim Wilson, President and CEO, Atari, Inc.

About cdv Software Entertainment USA

cdv Software Entertainment USA, a wholly owned subsidiary of cdv Software Entertainment AG, is a leading publisher of third-party video games and interactive entertainment with offices in New Jersey and headquarters in Cary, North Carolina. cdv Software Entertainment USA has published critically acclaimed and commercially successful titles including Divine Divinity, Blitzkrieg, American Conquest, Codename: Panzers, City Life, DarkStar One, War Front: Turning Point and the acclaimed Sherlock Holmes: The Awakened. The company will continue to expand its offerings with upcoming titles including the highly anticipated Sacred 2: Fallen Angel, as well as the Marc Ecko Entertainment co-produced I Heart Geeks! (DS) and My Little Baby (DS). For more information, please visit http://www.cdvus.com.

About Infogrames Entertainment and Atari

The Infogrames group, including Atari, Inc., is a global producer, publisher and distributor of interactive entertainment software for all market segments and all interactive game platforms including consoles from Microsoft, Nintendo and Sony Computer Entertainment, advanced smartphones, Personal Computers, web and online. Its games are sold in more than 60 countries through an international distribution network and direct to consumers via www.atari.com.

The Infogrames group’s extensive catalogue of popular games is marketed under the Atari brand and based on original franchises (Alone in the Dark, Test Drive, V-Rally, My Horse&Me, Backyard Sports franchise, Total Annihilation, Outcast etc.), publishing properties (The Witcher, Legendary, Race Pro etc.), international licenses (Dragon Ball Z, Dungeons&Dragons, Jamie Oliver etc.) and classic games covering the entire history of the video game industry (Pong, Missile Command, Asteroids etc).

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For media enquiries, please contact:

Mario Kroll, CDV Software Entertainment USA, mario.kroll@cdvus.com, at (919) 386-3475.

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Safe Harbor Statement

With the exception of the historical information contained in this release, the matters described herein contain certain forward-looking statements. 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; delays in product development and related product release schedules; inability to secure capital; loss of our credit facilities, adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent videogame software developers; maintaining or acquiring licenses to intellectual property; fluctuations in 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.

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.

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© 2008, 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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“Playstation”,“PLAYSTATION” and“PS” Family logo are registered trademarks of Sony Computer Entertainment Inc.

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All other trademarks are the property of their respective owners.


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