SUNNYVALE, Calif. — Oct. 25, 1994 — Atari Corporation , the name that created the video game industry, has joined forces with Virtuality Group PLC, the leader in virtual reality technology and arcade games, to create the world's first immersive virtual reality games for the home market.

According to the just signed agreement, Virtuality will finalize development of a consumer version of its head mounted display technology (virtual reality headset) that Atari will manufacture and market for use with the Atari Jaguar 64-bit multimedia home entertainment system. Terms of the agreement call for Atari to contribute toward the development cost and pay a license to Virtuality to produce and market the product. The virtual reality headset will be available to consumers by Christmas 1995 with a targeted price of less than $200.

"The Atari Jaguar platform is the only 64-bit system currently on the market and is ideally suited for immersive, virtual reality games," said Jon Waldern, chief executive officer of Virtuality. "This deal propels both companies to the forefront in the home market for virtual reality gaming. Thanks to the Atari Jaguar, fans of our many hit arcade titles will soon be able to play their favorite virtual reality games at home."

Atari President Sam Tramiel explained that both Atari and Virtuality have worldwide reputations for offering the most advanced gaming technology and performance. "Combining Virtuality's ability to deliver low cost solutions for virtual reality technology applications with the processing power capabilities of the 64-bit Atari Jaguar will result in a very high quality virtual reality experience at a very affordable price," he said.

Tramiel added, "By Christmas 1995, Jaguar owners will already be wearing their virtual reality headsets and playing virtual reality games at home. While others in the industry play catch up trying to offer 32 and 64-bit systems, Atari is extending our technological advantage over our competitors by delivering a high-quality virtual reality experience."

Atari Corporation markets interactive multimedia entertainment systems, including Jaguar, the world's only 64-bit game system, and the only video game system manufactured in the United States.

Virtuality Group PLC is the world leader in the design of high quality virtual reality technology, arcade gaming systems and software.