ATARI : ATARI : UPDATE ON CURRENT SITUATION AND REVENUES FOR THE 3RD QUARTER OF FY 2012/2013

 ATARI : ATARI : UPDATE ON CURRENT SITUATION AND REVENUES FOR THE 3RD QUARTER
                               OF FY 2012/2013

                         UPDATE ON CURRENT SITUATION
              AND REVENUES FOR THE 3^RD QUARTER OF FY 2012/2013

  * New Atari SA management continues to assess the situation and evaluates
    its options 

  * Revenues fall 64% in third quarter (October 1 to December 31, 2012) and
    51% over 9 months (March 1 to December 31, 2012) 

  * While visibility is reduced current activities are strictly limited to the
    operation of the existing catalog 

  * All solutions implemented will seek to meet the best interests of the
    Company and all of its shareholders 

Paris, France,  February  17,  2013  -  On February  5,  2013  Atari  SA  (the 
"Company") announced the arrival of  new shareholders, Ker Ventures and  Alden 
Capital, and the appointment  of Frederic Chesnais as  CEO of Atari SA.  Since 
then, new Atari SA management has been conducting a detailed assessment of the
situation  of  the   Group  to   evaluate  the  various   options  and   their 
implementation. This will be the subject of a subsequent communication.

In the  meantime,  the Group  releases  its  revenues for  the  quarter  ended 
December 31, 2012 and an update on the status of the Chapter 11 proceedings of
the U.S. subsidiaries, proceedings  which do not apply  to the Group's  French 
companies.

Q3 2012/2013 (October 1 to December 31, 2012) revenues down 64%

Revenues for the quarter  ended December 31, 2012  was generated prior to  the 
Chapter 11 filings in the United  States, the arrival of the new  shareholders 
and the change of directors.  During this particularly difficult quarter,  the 
sharp decline in revenues was mainly due to the lack of financial resources:

  * The decrease in digital revenues (77%  of the total revenue, -32%) is  due 
    to the interruption of the mobile and online games launch plan in light of
    the lack of resources to promote this type of games. 

  * The decline  in retail  and  other revenues  (23%  of Group  sales,  -81%) 
    continues to  reflect the  Group's  intention to  withdraw from  this  low 
    margins market segment. 

  * The  absence  of  licensing  agreements  is  linked  to  the  difficulties 
    encountered during the period. 

                    Q3 2012/2013       Q3 2011/2012    Change Change
                  €m  % of revenues  €m  % of revenues   €m      %
Digital           3.0         76.9%  4.4         40.0%   -1.4  -31.8%
Licensing         0.0          0.0%  1.8         16.4%   -1.8 -100.0%
Retail and others 0.9         23.1%  4.8         43.6%   -3.9  -81.3%
Total revenues*   3.9        100.0% 11.0        100.0%   -7.1  -64.5%

* Since FY 2011/2012  the Company decided, in  conjunction with the  Company's 
evaluation of  its  segments,  to  change the  presentation  of  the  "digital 
revenues", and that the  mobile and social portions  of the "Digital"  segment 
should be reflected on a gross basis. For consistency of presentation purposes
the Company has reflected the respective digital distribution revenues in  the 
same manner its accounts accordingly.

For the current quarter (ending on  March 31, 2013) and the following  months, 
the operations are exclusively focused  on the existing catalog and  potential 
distribution agreements  in  Europe. In  light  of the  current  context,  the 
outlook^[1] previously published by the Company has not yet been updated.

9 months 2012/2013 (March 1 to December 31, 2012) revenues down 51%

For the 9 months of 2012/2013, revenues breakdown is as follows:

                     Q3 2012/2013       Q3 2011/2012    Change Change
                   €m  % of revenues  €m  % of revenues   €m     %
Digital            7.1         48.0% 14.6         47.9%   -7.5 -51.4%
Licensing          0.4          2.7%  4.7         15.4%   -4.3 -91.5%
Retail and others  7.3         49.3% 11.2         36.7%   -3.9 -34.8%
Total revenues*   14.8        100.0% 30.5        100.0%  -15.7 -51.5%

* Since FY 2011/2012  the Company decided, in  conjunction with the  Company's 
evaluation of  its  segments,  to  change the  presentation  of  the  "digital 
revenues", and that the  mobile and social portions  of the "Digital"  segment 
should be reflected on a gross basis. For consistency of presentation purposes
the Company has reflected the respective digital distribution revenues in  the 
same manner its accounts accordingly.

Update on the US subsidiaries' Chapter 11 proceedings in the United States^[2]

On January 21, 2013,  Atari, Inc., Atari  Interactive, Inc., Humongous,  Inc., 
and California U.S. Holdings, Inc.  (the "U.S. Debtors") commenced chapter  11 
bankruptcy  proceedings  (the  "Chapter  11  Cases")  in  the  United   States 
Bankruptcy Court for the Southern District of New York (the "U.S. Court").  On
January 25, 2013, the  U.S. Debtors received interim  authority from the  U.S. 
Court to enter into a post-petition debtor-in-possession financing arrangement
(the "DIP Facility") with Alden  Global Distressed Opportunities Master  Fund, 
L.P., Alden Global  Value Recovery  Master Fund, L.P.  and Turnpike  Limited.  
 The U.S. Court has  approved the retention of  Perella Weinberg Partners  LP, 
the U.S. Debtors'  financial advisor,  for purposes of  marketing and  selling 
assets of the U.S. Debtors. 

The Board and  the management of  Atari SA  will review the  situation of  the 
Atari group in more detail, assess and seek to obtain the financing needed for
ongoing operations and work closely with the Atari group's US subsidiaries  in 
reviewing  the  options  available  to  them  under  the  pending  Chapter  11 
proceedings. The management will  keep the markets  regularly informed of  the 
changes in the Company's situation and of major decisions taken.

Since most of  the employees  and valuable assets  are located  in the  United 
States, the  outcome of  the US  bankruptcy procedure  will be  of  particular 
importance to  the Company.  Atari  SA Management  expects  to have  a  better 
appreciation of the outcome of this proceeding within the next few months  and 
before the maturity date of the DIP financing on July 25, 2013.

No assurances can be made at this point regarding any potential recoveries  to 
the existing shareholders.

For more information regarding the Chapter 11 Cases, please visit
http://bmcgroup.com/restructuring/geninfo.aspx?ClientID=316.

As previously  stated, the  inventory  work, the  evaluation of  the  possible 
options and the Chapter  11 proceedings will carry  on for several weeks.  All 
solutions which could  be implemented  seek to  respect the  interests of  the 
Company and all of its shareholders, subject to applicable law in the  Chapter 
11 cases. The  resumption of the  flotation will occur  when the situation  is 
clarified, within an estimated 4 to 6 weeks. The market will be informed  with 
48 hours notice.

About Atari
Atari (www.atari.com) 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: www.atari.com

Contacts

Investor relations
Calyptus - Marie Ein
Tel + 33 1 53 65 68 68
atari@calyptus.net

Media relations France
FTI - Guillaume Granier / Nicolas Jehly
Tel : +33 1 47 03 68 10 / + 33 6 32 65 79 28
guillaume.granier@fticonsulting.com
nicolas.jehly@fticonsulting.com
[1] Dec. 27, 2013 press release: "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"
[2] This update refers to the Atari February 5, 2013 release, available here :
http://www.atari.com/sites/default/files/Atari_Pong_Press-release_US_20130205.pdf

Atari: UPDATE ON CURRENT SITUATION AND REVENUES FOR THE 3RD QUARTER O

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