THE WORLD'S MOST FAMOUS MONSTER TO INVADE THE WII, NINTENDO DS AND PSP® SYSTEM

ATARI ANNOUNCES DEVELOPMENT OF GODZILLA®: UNLEASHED

NEW YORK, Jan. 31, 2007 - Atari, Inc. (Nasdaq: ATARD), one of the world's most recognized brands and third-party video game publisher, today announced the development of Godzilla®: Unleashed, the ultimate giant fighting monsters game. Godzilla®:
Unleashed will tear its way onto Wii(TM), Nintendo DS(TM) and PSP®
(PlayStation®Portable) system in fall 2007.

Godzilla: Unleashed is a fighting game on a giant scale. The game stars the legendary Godzilla and a slew of the most renowned monsters of all-time. Gamers are challenged to ultimately save the planet from mayhem and destruction. Set in urban arenas, Godzilla: Unleashed's interactive 3D cityscapes, big destructible buildings, soaring skyscrapers and towering alien formations provide the backdrop to epic worldwide destruction.

"We are building on the famous Godzilla franchise by focusing on multiple story paths, devastating urban destruction, and utilizing the most imposing creatures in film history, all in one hard-hitting fighting game," said Rick Mehler, Director, Marketing, Atari, Inc. "In Godzilla: Unleashed for the Wii, players will tap into their inner monster powers when using the system's wireless, motion-sensing controller."

Players will claw, kick, stomp, throw and blast their way through the streets of major world cities in order to claim the ultimate, beastly title: King of the Monsters. In addition to a fully reinvented combat system, Godzilla: Unleashed will feature an innovative non-linear storyline which will allow players to influence how the story unfolds through their choices within battles.

For more information on Godzilla: Unleashed, Atari and its entire product line-up please visit www.atari.com.

About Atari
New York-based Atari, Inc. (Nasdaq: ATARD) develops interactive games for all platforms and is a third-party publishers of interactive entertainment software in the U.S. The Company's 1,000+ titles include hard-core, genre-defining franchises such as The Matrix (Enter The Matrix and The Matrix: Path of Neo) and Test Drive®; and mass-market and children's franchises such as Nickelodeon's Blue's Clues and Dora the Explorer, and Dragon Ball Z®. Atari, Inc. is a majority-owned subsidiary of France-based Infogrames Entertainment SA (Euronext - ISIN: FR-0000052573), the largest interactive games publisher in Europe. For more information, visit www.atari.com .

Safe Harbor Statement
With the exception of the historical information contained in this release, the matters described herein contain certain "forward-looking statements" that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this release are not promises or guarantees and are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. These statements are based on management's current expectations and assumptions and are naturally subject to uncertainty and changes in circumstances. We caution you not to place undue reliance upon any such forward-looking statements. Actual results may vary materially from those expressed or implied by the statements herein. Some of the factors which could cause our results to differ materially include the following:
the loss of key customers, such as Wal-Mart, Best Buy, Target, GameStop and EB Games; delays in product development and related product release schedules; inability to secure capital; adapting to the rapidly changing industry technology, including new console technology; maintaining relationships with leading independent video game software developers; maintaining or acquiring licenses to intellectual property; fluctuations in the Company's quarterly net revenues and results of operations based on the seasonality of our industry; the termination or modification of our agreements with hardware manufacturers; and other factors described in our SEC filings.

The Company undertakes no duty to update any forward-looking statements to conform the statement to actual results or changes in the Company's expectations.

© 2007, Atari, Inc. All rights reserved. ATARI, the ATARI logo, and classic Atari game titles and logos are trademarks or registered trademarks of Atari Interactive, Inc. or its affiliates.

Nintendo DS and Wii are trademarks of Nintendo. (C) 2006 Nintendo.

"PlayStation", "PS" Family logo and "PSP" are registered trademarks of Sony Computer Entertainment Inc. Memory Stick Duo(TM) may be required (sold separately).

Godzilla (R), all related characters and the character designs are trademarks of Toho Co., Ltd. (c) 2007 Toho Co., Ltd. All Rights Reserved.

All other trademarks are the property of their respective owners.