Atari Announces Corporate Action Plan

Feb 17, 2006: Atari, Inc. (Nasdaq: ATAR), a leader in interactive entertainment, today announced the implementation of its corporate action plan.

This announcement follows the company's statement in early February that it would act on cost control, dispose of non-core assets and place a stronger emphasis on external development studios. The Company announced today the restructuring of its operations, which will result in a worldwide workforce reduction of approximately 20%.

"Today's decisive action will provide us with the flexibility necessary in a changing business environment," said Bruno Bonnell, Chairman and Chief Executive Officer. "Adjusting our cost structure is a significant first step and demonstrates our commitment to restoring shareholder value."