ATARI ANNOUNCES MASS MARKET PRICE FOR 64-BIT JAGUAR

SUNNYVALE, Calif. March 21, 1995 Atari Corporation today announced that the 64-Bit Jaguar Interactive Multimedia system will have a suggested retail price of under $160. This Atari Jaguar system will be called the "64-Bit Power Kit" and includes the Jaguar console, a controller, power adapter and video cable (game cartridge not included). "64-Bit Power Kit" packages will be specially marked to highlight the "Mega-Power, Maximum Value" that the new price point represents.

"With this new Jaguar price, and the great software now available in stores with more to come the Atari Jaguar will lead the next generation of video games into the homes of America. This price puts the 64-Bit Jaguar within the grasp of a broad market looking for the most advanced system at an affordable price," said Sam Tramiel, President of Atari.

Technological advances have allowed Atari to take this aggressive pricing action, as the cost of components has been reduced through a planned chip set integration and further design advances.

Tramiel further stated, "We are very excited to provide these great values, and look forward to strong sales for both the 64-Bit Jaguar Hardware and Jaguar software. The current library includes such major hits as 'Tempest 2000," "Alien Vs. Predator," "Doom," Troy Aikman Football, "Val D'Isere Skiing" and "Iron Soldier." As the Jaguar software library increases with great titles like "Fight For Life," "Hover Strike," "Rayman" and "Super Burnout," we expect solid hardware sales growth. Our Retail Dealers are equally excited about the new pricing, and anticipate that a broad base of consumers will rush to the store to buy the Jaguar."

To launch the new Jaguar unit, Atari will deliver a targeted marketing campaign to build awareness of the new Jaguar system value and the great current games (and pending new titles). Advertising is scheduled to commence in the spring. Special in-store merchandising materials have been developed to reinforce the Mega-Power/Maximum Value message and encourage the consumer to "Do the Math."

Atari Corporation markets the Jaguar, the world's first and only 64-Bit interactive multimedia entertainment system. Atari is headquartered at 1196 Borregas Avenue, Sunnyvale, California 94089.

NOTE: Jaguar is a trademark of Atari Corporation. Atari is a registered trademark of Atari Corporation. Other products named may be trademarks or registered trademarks of their owning companies.