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ATARI ANNOUNCES BATTLEZONE® FOR PSP™ SYSTEM

Quick, Action-Based Battles Meet Today’s Consumer Demands for Engaging, On-the-Go Gaming

NEW YORK, NY, May 4, 2006 – Atari, Inc. (Nasdaq: ATAR) today announced the development of BattleZone for the PSP™ (PlayStation®Portable) system, a modern update to the 1980 classic arcade game.  BattleZone immerses players in an interactive world with relentless onslaughts of quick, action-oriented battles.  In development by Paradigm Entertainment, BattleZone for the PSP system will blast onto global terrain in November 2006.

Set in futuristic international military environments, BattleZone puts players in control of highly maneuverable hover tanks, challenging them in close combat scenarios against their rivals.     BattleZone features fast and furious gameplay, photo-realistic environments, eight unique customizable team vehicles, an assortment of high-powered weapons and multiplayer battles.  The four-player WiFi mode lets players go head to head, while unlockable weapons, vehicles and upgrades add even greater depth to the gameplay experience. In addition, extra game content will be available through the BattleZone web site, offering gamers news, leader boards and an exclusive online level builder tool that allows players to customize game maps.  The extra content can then be downloaded to the players’ PSP system through a local PC-USB connection. 

“The BattleZone arcade game broke the mold for vehicle action combat in 1980, and today’s version will reinvent this classic property into a modern day must-have,” said Stephen Baer, Senior Product Manager, Atari, Inc. “BattleZone for the PSP system offers the fast-paced action and addictive gameplay that meets the demands of today’s on-the-go generation.”

BattleZone provides players with six popular and well-known game modes, including Deathmatch, Capture the Flag, Team Deathmatch, Hotzone, Knockout, and Fox and Hound.  For casual gamers, the single player mode offers an easy learning curve for pick-up and play gaming and a tournament progression to win upgrades and enhancements. 

Designed to take advantage of the PSP system’s high quality display, BattleZone’s crisp environments depict military combat arenas from around the world.   Specific sights include abandoned cities of Russia, jungles of China, desert canyons of the United States, Antarctica’s frozen tundra and the Canary Islands. Players can fight their way through the compelling open play of ten worlds in BattleZone, two of which can be customized online and transferred to their PSP system. 

Capitalizing on all the PSP system offers with quick action control, close combat gameplay, familiar game modes and WiFi capabilities, BattleZone will yet again redefine vehicle combat action for the next generation of today’s portable gamers.