UPDATE ON CURRENT SITUATION

  *Stabilization of Atari SA's situation in France, business at a standstill

  *Ongoing Chapter 11 Proceedings of Atari's US Subsidiaries on which Atari
    SA has only a limited influence

  *Suspension of trading of Atari shares maintained, pending better
    visibility over the outcome of the ongoing Proceedings in the US

  *Modification of the Board

Paris, France,  April  24, 2013  -  Atari SA  (the  "Company" or  "Atari")  is 
communicating on  the  latest developments  regarding  its situation  and  the 
progress of the Chapter 11 Proceedings in the US (the "Proceedings") of the US
subsidiaries (i.e. Atari Interactive, Inc., California US Holding Inc.,  Atari 
Inc. and Humongous Inc.) (the "US Subsidiaries").

Readers  are  invited   to  refer  to   Atari's  previous  communications   on

Recent actions taken by Atari's management in France

Atari's situation in France has been stabilized:

  *Atari's business in  France is being  maintained but at  a standstill  and 
    consists only in following the Proceedings  in the US. The liquidation  of 
    Eden Games, started on January 29, 2013, is in process. 

  *Alden^[1] and Ker  Ventures have  agreed to  postpone the  payment of  any 
    interest due by the Company under  the ORANEs they hold until the  earlier 
    of: September 30,  2013 or a  period expiring thirty  (30) days after  the 
    termination of the Chapter 11 Proceedings in the US. The coupons have been
    paid to  the  other  ORANEs  bondholders in  accordance  with  the  stated 
    contractual maturity date.
  *Negotiations with Alden have also  been made, permitting the extension  of 
    the maturity date  of the EUR  21.4 million credit  facility (the  "Credit 
    Facility") and the corresponding interest to July 25, 2013, which is  also 
    the maturity date of the $5 million DIP financing granted by Alden to  the 
    US subsidiaries.

The cash position of Atari SA as at  March 31, 2013 is about EUR 1.5  million, 
which should be sufficient for the Company to cover its financial  obligations 
until July 25, 2013 (excluding repayment of the Credit facility) and therefore
follow the US Proceedings over the period.

In order  to  enable Atari  to  repay its  Credit  Facility and  maintain  (if 
possible) its operations after  July 25, 2013, sales  of assets in  accordance 
with the Chapter 11  Proceedings in the  US are necessary.  The scope of  such 
sales and their prices will be determined in the course of the Proceedings and
under the final control of the US bankruptcy judge, as further detailed below.
The outcome of the Proceedings, which will also need to be approved by the  US 
creditors, will be of  particular importance for  Atari and its  shareholders. 
The possible options for continuing operating will be assessed at this  point, 
depending on the  remaining assets, as  the case may  be, their potential  and 
financing available.

Progress on Chapter 11 Proceedings in the United States

The Chapter 11 Proceedings with the Bankruptcy Court in New York, handling the
case submitted by the US subsidiaries  on January 21, 2013 (the "Court"),  are 
still pending. The various  stages in the Proceedings  and the main  documents 
and motions are being published directly  by the Court as they progress.  They 
may be consulted online at the following link:

As at January 21, 2013, the US Subsidiaries did not have sufficient  resources 
to compensate the  US creditors repay  the abovementioned loan  and finance  a 
reorganization of  its  business.  Today,  the  situation  remains  unchanged. 
Therefore, the option chosen by the US Subsidiaries during the Proceedings has
been to solicit offers from third parties as part of a sale process (the "Sale
Process") for all or part of the US assets, in accordance with section  363(c) 
of the US Bankruptcy  Code. These assets  form the bulk  of the Atari  Group's 

As indicated  in the  Company's press  release  of February  5, 2013,  in  the 
context of the Chapter  11 Proceedings, Alden made  available a maximum USD  5 
million debtor-in-possession  (DIP) cash  financing  to the  US  Subsidiaries, 
enabling them  to  keep  operating.  The  creditors'  committee  hasalso  been 

The Court entered  an order establishing  April 30, 2013  as the deadline  for 
filing proofs of  claims by parties  who may hold  claims against the  Debtors 
that arose prior to the date of filing for bankruptcy.

Regarding the  offer submission  process,  the next  step  will be  for  third 
parties to submit binding offers. Atari SA will have no authority to accept or
reject them. Indeed,  due to the  US bankruptcy law,  the independence of  the 
parties in the Proceedings and the powers  granted to the Court, Atari SA  has 
limited  influence  over   the  decisions   taken  in   connection  with   the 
restructuring of its subsidiaries and the progress schedule.

Potential buyers (the "Potential Buyers") include both financial and strategic
buyers,  the  latter  category  consisting  of  both  gaming  and   non-gaming 
companies. They have executed  non-disclosure agreements to  gain access to  a 
virtual data room established by the US Subsidiaries to assist them with their
due diligence regarding the assets.  The discussions and negotiations  between 
the US  Subsidiaries  and  the  Potential Buyers  are  still  ongoing.The  US 
Subsidiaries anticipate that,  in the  coming weeks,  these negotiations  will 
culminate in  the  submission  of  binding offers  by  the  Potential  Buyers. 
Following the submission  of such offers,  the Debtors will  seek the  Court's 
approval of bid procedures, which  will set forth the  next steps in the  Sale 
Process as  well as  the procedures  for the  selection of  higher and  better 
offers and a potential auction.

For this  auction phase,  the  US Proceedings  may  include the  mechanism  of 
"stalking horse" offers. Under this mechanism, certain offers may be  accepted 
in advance(i.e. stalking horse  offers). If such an  offer is accepted,  this 
offer will be the subject  of a motion to the  Court, notice to creditors  and 
other interested parties, in order to seek authorization to proceed with  such 
offer in accordance with its terms unless a higher offer is submitted.

Therefore, the prospects of Atari SA  and its shareholders will depend on  the 
outcome of such Proceedings and the proceeds received from the sale of all  or 
part of the assets, net of all legal and transactional costs, staff costs  and 
other operating costs approved by the Court in the context of the  Proceedings 
and after distributions to creditors, including repayment of the DIP financing
of $5 million maximum and the Euro 21.4 million Credit Facility.

Suspension of trading maintained

Considering the  complexity  and  uncertainties of  the  US  Proceedings,  the 
Company is  not at  this stage  in a  position to  request the  resumption  of 
trading of Atari shares on the NYSE Euronext Paris market.

The Board of Directors  expects the Sale Process  to be complex. It  therefore 
believes that it  is preferable to  be in a  position to provide  shareholders 
with details of the offers received before considering a resumption of trading
of Atari's shares. Details of the  offers will be released by US  Subsidiaries 
in the  course  of  the Proceedings  and  Atari  will seek  to  ensure  prompt 
communication of the information.

At this stage, no  guarantees can be given  concerning the potential  recovery 
for existing shareholders. The  market and the  shareholders will be  informed 
with 48 hour prior notice if trading is to resume.

Changes at the Board of Directors

Alyssa Padia Walles, president of Amplitude Consulting, has joined the  Board, 
effective  April  4,  2013,  replacing  Alexandra  Fichelson.  Ms  Walles  has 
extensive experience in media start-ups to multinational companies.

Alyssa Walles has a wide expertise, notably in the development and  management 
of companies, sales, brand promotion as well as international marketing in the
interactive business (video games, apps, on-line games, etc.).

She  had  high  management  positions  in  companies  such  as  Sony  Computer 
Entertainment Europe  where she  contributed to  the PlayStation  launch.  She 
knows Atari well,  as she was  Senior Vice President,  Corporate Evolution  of 
Infogrames / Atari  from 2000  to 2003  and played  an important  role in  the 
integration of GT Interactive and Hasbro Interactive and handled the marketing
intiative to enhance the Atari brand.

As  a  strategy  consultant,   Alyssa  Walles  has   worked  on  brands   like 
Fisher-Price, Nimbus Games,  Leapfrog, Nutri-Ventures,  Integrity Media,  Sony 
Pictures Home Entertainment and Backyard Sports, in particular as co-president
of Humongous, Inc.

Alyssa  Walles  holds  a  degree  in  "Cinema"  from  University  of  Southern 
California and is  also a mentor  at the  USC Marshall School  of Business,  a 
founding member  of  the  Long  Beach TEC  (a  multimedia  incubateur)  and  a 
consultative member of the [a]list games.

According to French regulations, the Board  of Atari has reviewed on April  4, 
2013 the composition and independance of its directors. As of today, the Board
of Atari is the following:

  *Frédéric Chesnais - Président Directeur Général (CEO)

  *Frank Dangeard - Independent Director, Chair of the audit committee

  *Tom Virden - Independent Director, Chair of the recruiting and
    compensation committee

  *Erik Euvrard - Independent Director

  *Alyssa Padia Walles - Independent Director 

Alexandra Fichelson  has  resigned from  the  Board for  personal  reasons.The 
ratification of  the cooptation  of Ms  Walles, following  the recruiting  and 
compensation  committee  recommandation,  shall  be  submitted  to  the   next 
shareholders general meeting of Atari.

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

Investor relations
Calyptus - Marie Ein
Tel + 33 1 53 65 68 68

[1]Alden Global Capital on behalf of Alden Global Value Recovery Master Fund,
L.P. (hereafter "Alden")



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(i) the releases contained herein are protected by copyright and other
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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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