Atari S.A. — Earnings Release 2014

Oct 20, 2014

Very significant revenue growth for the first half of FY 2014-15

(Half-year ended September 30, 2014 - Preliminary unaudited data, approved by the Board of Directors on October 15, 2014)

US\$ 4.6 million in revenues, equivalent to €3.5 million, compared with €1.0 million for the first half of the previous year

Performance on mobile products

Product catalogue investments for 2014-2015

Paris, France – October 20, 2014. For the half-year ended September 30, 2014, the Atari Group is reporting very significant growth in its revenues. In this way, revenues came to US\$ 4.6 million, equivalent to €3.5 million, compared with €1.0 million for the first half of the previous year.

REVENUES FOR THE FIRST-HALF ENDED SEPTEMBER 30

HY revenues	2014/2015 (april - sept.)	2013/2014 (april - sept.)	%
Million US Dollars	4,6	1,3	253%
Million euros	3,5	1,0	245%

First-half business was marked by the good performance on download games and mobile games. The RollerCoaster Tycoon mobile game has stood out in particular, achieving strong success as soon as it was launched. Indeed, this has been the top-ranking game in many European countries and the United States. The Android version (Google Play and Amazon platform) has just been launched.

Atari's strategy is built around five business lines: Single-player download games for PC, Multiplayer download games for PC (MMO), Mobile games (iOS, Android), Licensing activities and Atari Capital Partners (ACP), making it possible to capitalize on the brand's strong reputation by developing several strategic partnerships in promising business areas.

The business combines the back catalogue, which is gradually being relaunched (the Atari Group has over 300 titles), and the development of new games.

During the first half of this year, the Atari Group continued moving forward with its investments in new games, with its new titles including:

• Single-player games (download games for PC): Haunted House: Cryptic Graves will be released at the end of 2014; Alone in the Dark Illumination PC in single-player version will be released in 2014; RollerCoaster Tycoon World PC in single-player version for PC, following the global success of previous editions, will be released in early 2015. Other products will also be released in 2015;
• Multiplayer games (PC): Alone in the Dark Illumination, the latest instalment from the Group's longstanding franchise, will be released at the end of 2014; RollerCoaster Tycoon World in multiplayer version is scheduled for early 2015; a new multiplayer game, Asteroids, will be announced in detail shortly;
• Mobile games (iOS, Android): the Android version (Google Play and Amazon platform) of RollerCoaster Tycoon Mobile will be released in 2014; Atari Fit, the new fitness application, will be released in early 2015; the same is true for PrideFest, a game for the LGBT community;
• Licenses: the very latest edition of the Atari Flashback, a replica of the initial Atari 2600 console, will be available this winter.
• Atari Capital Partners / Atari Casino: this product line covers all the partnership-based investments under which the Atari Group is capitalizing on its brand by teaming up with partners. These partners cover the bulk of the initial investments in return for a share in the revenues. In this area, Atari Casino illustrates this partnership strategy. Atari Casino comprises two casino platforms:
• o Atari Casino: this platform works with real money. Developed in partnership with Pariplay, it will be released in Europe, except in countries with specific regulations (such as France);
• o Atari Jackpots: this platform works with virtual money. It will be available worldwide.
• o These two platforms, with the corresponding investments covered by each partner studio, will be marketed by Atari and operated by the partner. They complement one another and cover this market's two key segments.
• o The main games will be slot machines and scratch card games. Initially available on PC, these platforms will be launched for mobiles and tablets.

The Group is maintaining its strategic focus, based around a production model limiting its fixed costs and optimizing its return on investments.

Commenting on this announcement, Frédéric Chesnais, Atari's Chairman and CEO and one of the Group's main shareholders, declared: "The catalogue summarized above clearly shows the Group's strategic focus. As indicated previously, we are making good progress and the level of business for the first half of the year is in line with our objectives for the full year. For FY 2014-15, we have set ourselves a target to break even financially in terms of our income from ordinary operations, with a profitable second half of the year, factoring in the investments in new products developed during the first half of FY 2014-15".

About Atari

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®, Ghostbusters®, 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.

Contacts

Atari - Philippe Mularski, CFO Tel +33 1 83 64 61 57 - pm@atari-sa.com Calyptus – Marie Calleux Tel + 33 1 53 65 68 68 - atari@calyptus.net

APPENDIX I – DETAILED BREAKDOWN OF REVENUES

HY revenues		2014/2015 (april - sept.)	2013/2014 (april - sept.)	%
Million US Dollars		4,6	1,3	253%
Million euros		3,5	1,0	245%
Million euros		Q1	Q2	TOTAL
		(april - june)	(july - sept.)
FY 2014/2015	Actual	1,6	1,9	3,5
	% of revenues	46,2%	53,8%	100%
FY 2013/2014	Actual	0,3	0,7	1,0
	% of revenues	30,0%	70,0%	100%

Revenues are generated primarily in the United States.

2014-15 FIRST-HALF REVENUES (April-September)

Revenues for the first half of 2014-15 came to:

• US\$ 4.6 million, compared with US\$ 1.3 million for the same period the previous year, up 253%;
• €3.5 million, compared with €1.0 million for the same period the previous year, up 245%.