ATARI : ATARI : December 27, 2012 press release

               ATARI : ATARI : December 27, 2012 press release

Paris, France, December 27, 2012 - The Board of Atari met on December 23^rd to
review discussions  on  capital  raising initiatives  and  to  review  current 
trading and financial projections.

To date discussions with potential  investors for the underwriting and  launch 
of a rights issue and/or a reserved capital increase have not enabled such  an 
operation to  proceed due  to general  market conditions  and the  complicated 
nature of the  Company's capital  and debt  and structure.  Consequently,the 
restructuring agreement entered  into on  September 28^th,  2012 with  BlueBay 
will lapse at  its term, i.e.  on December 31^st,  2012. AlthoughBlueBay  has 
agreed to extend  the credit facility  agreement to March  31^st, 2013 and  to 
continue to  forbear  from  requesting payment  of  interest  due  thereunder, 
BlueBay has indicated that it cannot  make available new money thereunder,  or 
in any other form, directly or in  the form of an underwriting. The Board  was 
informed that BlueBay is pursuing other options in respect of its stake in the
Company, which have yet to be finalized.

The Board  also  reviewed  current  trading and  noted  the  difficult  market 
environment in on-line and  mobile games, which is  affecting all players.  In 
addition, Atari's management has been heavily involved throughout the last few
months in discussions with potential investors for capital needed to invest in
the day-to-day  operation  of  the business.  Pending  finalization  of  these 
discussions, the  Group's financial  resources and  assets have  been  managed 
carefully thus causing delays  in key marketing  programs, title releases  and 
licensing initiatives.

Despite these circumstances, Atari continues to pursue its efforts to maximize
revenue from previously released digital  games based upon its highly  popular 
game franchises:

  *Super Bunny Breakout for iOS (iPhone, iPad) was released in October 2012

  *Atari Outlaw(TM) was released for iOS (iPhone, iPad) in November 2012

  *Centipede: Origins Free to Play Update was released for iOS (iPhone, iPad)
    in November 2012 

  *Pong World was released for iOS (iPhone, iPad) in November 2012

  *Dungeons and Dragons: Warbands(TM) is anticipated to be released for  iPad 
    in the 1^st quarter of 2013

  *Atari Casino(TM) is anticipated to be  released for iOS (iPhone, iPad)  in 
    the 1^st quarter of 2013

  *RollerCoaster Tycoon is anticipated to be released for iOS (iPhone,  iPad) 
    and Android in the 1^st quarter of 2013

Consequently, management now expects Current  Operating Income for the  second 
half of the fiscal year to be negative, exceeding the loss of the first  half. 
Therefore for the fiscal year 2012/2013,  the Company now expects to record  a 
significant loss^(^[1]^).

The impact of these negative conditions  is putting significant strain on  the 
cash resources  of the  Company and  its subsidiaries  in the  short-term.  In 
addition to the normal  operation of the business,  the Company is looking  at 
all additional  means of  raising or  preserving cash,  including  specialised 

About Atari, SA
Atari ( is  a multi-platform,  global interactive  entertainment 
and licensing  company. The  original innovator  of video  gaming, founded  in 
1972, Atari  owns  and/or manages  a  portfolio of  more  than 200  games  and 
franchises, including  world  renowned  brands  like  Asteroids®,  Centipede®, 
Missile Command®,  Pong®,  Test  Drive®, Backyard  Sports®  and  RollerCoaster 
Tycoon®.  Atari  capitalizes  on  these  powerful  properties  by   delivering 
compelling games online  (i.e. browser,  Facebook® and  digital download),  on 
smartphones and tablets and other connected devices. The Company also develops
and  distributes  interactive  entertainment  for  video  game  consoles  from 
Microsoft, Nintendo  and Sony.  As a  licensor, Atari  extends its  brand  and 
franchises into other media, merchandising and publishing categories.

For more information:


Investor relations     Media relations
Calyptus - Marie Ein   Relations presse
Tel + 33 1 53 65 68 68 FTI - Guillaume Granier / Nicolas Jehly     Tel: + 33 1 47 03 68 10

[1]() Previous guidance last published on October 25, 2012: "Given 1H  2012/13 
release and promising  outlook for the  rest of the  fiscal year, the  Company 
expects to  be profitable  in  2H 2012/13,  as  Digital activities  should  be 
fostered by a  strong pipeline  and thus significantly  contributed to  margin 
improvement during the second half of this fiscal year. Thus, the Company  now 
expects Current Operating Income  to be at or  near breakeven for this  fiscal 

Atari: December 27, 2012 press release


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(ii) they are solely responsible for the content, accuracy and originality  of 
information contained therein.

Source: ATARI via Thomson Reuters ONE
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