Special Shareholders' Meeting Convened to Approve a Proposed Settlement Plan for the OCEANE 2005 Bond Debt

Special Shareholders' Meeting Convened to Approve a Proposed Settlement Plan for the OCEANE 2005 Bond Debt Repayment of the Medium-Term Bank Debt Continues LYON, France, Jan. 18 /PRNewswire-FirstCall/ -- Infogrames Entertainment (Paris Euronext ISIN: FR-0000052573) restated today that its annual and special shareholders' meeting would convene on second notice on January 19, 2005 to examine the settlement plan for the OCEANE 2005 convertible bonds. Bruno Bonnell explained that "the Company is engaged in a massive debt- reduction process that will significantly improve its financial structure at the onset of a new growth cycle expected over the coming five years. With our significantly improved debt-to-equity ratio, we will now be prepared to take on the challenges of the industry and create value for shareholders." * Special Shareholders' Meeting to convene on January 19, 2005 on second notice, to approve the proposed settlement of the OCEANE 2005 bonds A special meeting of Infogrames Entertainment's shareholders has been called for January 19, 2005, at which participants will be asked to approve the planned settlement of the OCEANE 2005 bond debt. The three-step repayment plan strikes a balance between the interests of the shareholders and the bondholders, and those of the Company itself by ensuring that it has sufficient cash to meet future debt repayment obligations. * New measure to reduce the medium-term bank debt As part of the Group's comprehensive restructuring of its debt and in keeping with its promise to settle its medium-term bank loans, Infogrames Entertainment announced that its wholly-owned subsidiary California US Holdings (CUSH) had sold 11 million shares of Atari, Inc., at a price per share of $2.55, raising a total of $26.6 million. After disposing of the shares, Infogrames holds 52.04 percent of Atari Inc. stock, the Group's US subsidiary. Wedbush Morgan Securities, Inc. acted as a financial advisor to Infogrames Entertainment ("CUSH") in this transaction. This announcement does not constitute an offer to sell, or a solicitation of offers to purchase or subscribe for, securities in the United States. The securities referred to herein have not been, and will not be, registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Infogrames Entertainment does not intend to register the offer in full or in part nor to offer or sell to the public in the United States. No copy of this communication has been nor must be sent or circulated in the United States, in Canada or in Japan. This communication is directed only at persons who (i) are outside the United Kingdom or (ii) have professional experience in matters relating to investments pursuant to Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2001 (the "Order") or (iii) are persons falling within Article 49(2)("high net worth companies, unincorporated associations etc.") of the Order (all such persons together being referred to as "relevant persons"). This communication must not be acted on or relied on by persons other than relevant persons. Any investment or investment activity to which this communication relates is available only to relevant persons and will be engaged in only with relevant persons. About Infogrames Entertainment and Atari: Infogrames Entertainment (IESA), the parent company of the Atari Group, is listed on the Paris Euronext stock exchange (ISIN code: FR-0000052573) and has two principal subsidiaries: Atari Europe, a privately-held company, and Atari, Inc., a United States corporation listed on NASDAQ (ATAR). The Atari Group is a major international producer, publisher and distributor of interactive entertainment software for all market segments and in all existing game formats (Microsoft, Nintendo and Sony) and on CD-ROM for PCs. Its games are sold in more than 60 countries. The Atari Group's extensive catalog of popular games is based on original franchises (Driver, Alone in the Dark, V- Rally, Unreal Tournament, Test Drive, Roller Coaster Tycoon, etc.) and international licenses (Mission Impossible from Paramount, Men In Black, Superman, Matrix, Terminator and Dragon Ball Z). For more information: http://www.atari.com/ Source: Infogrames Entertainment CONTACT: Cecile Sornay, +33-4-37-64-30-00, Fax, +33-4-37-64-30-35, cecile.sornay@atari.com Web site: http://www.atari.com/ ------- Profile: International Entertainment