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New Strategic Agreement With Hasbro Concerning The Dungeons&Dragons Franchise

DIGITAL GAMING RIGHTS TO BE SOLD BACK TO HASBRO FOR 19.5 MILLION US DOLLARS

Lyon, France, July 18, 2007– As part of the relaunch strategy announced by the Group on June 21 and the Group’s plan to focus its investment on major franchises with significant potential, Infogrames Entertainment SA (Euronext 5257) today announced the signing of a new agreement with Hasbro concerning:

- the extension until 2017 of the exploitation of the intellectual property rights to the Dungeons&Dragons universe, under an exclusive license covering all interactive formats, including online and wireless.

The agreement covers all current and future products that are part of this universe, including NeverWinter Nights, Baldur’s Gate, etc.

Two new games have already been announced for fiscal 2007-2008: NeverWinter Nights 2 Expansion Pack for PC and Dungeons&Dragons Tactics for PSP.

- the purchase by Hasbro of digital gaming rights (online and wireless) to nine franchises (Monopoly, Scrabble, Risk, Game of Life, Clue, Yahtzee, Battleship, Boggle and Simon), for 19.5 million dollars (*). This sale will have no significant impact on revenue for the current fiscal year.

“This agreement represents a reaffirmation of our partnership with Hasbro. It is an important step in our business strategy that will allow us to keep and strengthen a franchise with significant potential, while giving the Group additional resources to invest in the relaunch of its publishing business. Dungeons&Dragons is one of the Group’s historic intellectual properties on which we plan to expand our business, relying on one of the largest and most active gamer communities in the world of video games,” commented Patrick Leleu, Chairman and Chief Executive Officer.

(*) of which, 4 million dollars shall be paid to Atari Inc

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About Infogrames Entertainment and Atari

Infogrames Entertainment (IESA), the parent company of the Atari Group, is listed on the Paris Euronext stock exchange (ISIN code: FR-0000052573) and has two main subsidiaries: Atari Europe, a privately-held company, and Atari, Inc., a United States corporation listed on NASDAQ (ATAR).

The Atari Group is a producer, publisher and distributor of interactive entertainment software for all market segments and in all existing game formats (Microsoft, Nintendo and Sony) and on CD-ROM for PC. Its games are sold in more than 60 countries.

The Atari Group’s extensive catalogue of popular games is based on original franchises (Alone in the Dark, V-Rally, Test Drive, etc.) and international licenses (Dragon Ball Z, Dungeons&Dragons, etc.).

For more information: http://www.atari.com

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