SUNNYVALE, Calif., Nov. 16 — Atari Corporation announced today that it has received regulatory approval in connection with its agreements with Sega and the transactions have closed.

Sega has paid Atari $50 million (Atari's net being less contingent legal fees and costs) in exchange for a license from Atari covering the use of a library of patents. In addition, Sega has made an equity investment in Atari of $40 million at a common share price of $8.50. Finally, Sega and Atari have entered into cross licensing agreements through the year 2001. The cross licensing agreement also allows the two companies to publish on each of their respective platforms.

Commenting on the announcement, Sam Tramiel, president of Atari, said, "We are very pleased to have closed these transactions. These funds will be used to increase software development for the Atari Jaguar as well as increased promotional activity and other working capital requirements."

Since its release in November 1993, Atari's Jaguar game system has been named the industry's "Best New Game System" (Video Game Magazine), "Best New Hardware System" (Game Informer) and "1993 Technical Achievement of the Year" (DieHard GameFan). The Jaguar is the only video game system manufactured in the United States.

Atari Corp. markets interactive multimedia entertainment systems, including Jaguar, the world's only 64-bit system, and the only video game system manufactured in the United States. Atari is headquartered at 1196 Borregas Ave., Sunnyvale, CA 94089.