Activision Blizzard (ATVI)

The company and its independent auditors are reviewing the findings and recommendations of the independent investigation. The special sub-committee found inaccuracies in the determination and reporting of measurement dates for certain stock options granted by the company during the period between 1994 and 2006.

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The exact amount of additional expense, and the allocation of this additional expense among particular periods, remain to be finally determined by the company in conjunction with its outside auditors. In addition, the company is continuing to review and analyze the potential tax implications and any impact of the matters identified by the special sub-committee.

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products.  Founded in 1979, Activision posted net revenues of $1.47 billion for the fiscal year ended March 31, 2006.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia, Spain, the Netherlands and South Korea.  More information about Activision and its products can be found on the company’s World Wide Web site, which is located at www.activision.com.

Cautionary Note Regarding Forward-looking Statements:  Information in this release that involves the company’s expectations, plans, intentions or strategies regarding the future are forward-looking statements that are not facts and involve a number of risks and uncertainties.  In this release they are identified by words such as “will,” “will be,” “remains,” “to be,” “plans,” “believes,” “may,” “expects,” “intends” and similar expressions.  These risks and uncertainties relate to, but are not limited to, the completion of remaining work by the special sub-committee, the company and its auditors arising out of the review of the company’s historical stock option granting practices and any related restatements of the company’s financial statements that may be required, the completion of required filings with the SEC, the implementation, acceptance and effectiveness of the remedial measures recommended or adopted by the special sub-committee, the board or the company, the outcome of the informal inquiry opened by the SEC in July 2006, the delisting proceedings pending before the Nasdaq, and the derivative litigation filed in July 2006 against certain current and former directors and officers of the company relating to the company’ stock option granting practices, the possibility that additional claims and proceedings will be commenced, including additional stockholder litigation, employee litigation, and additional action by the SEC and/or other regulatory agencies, and direct and indirect expenses and diversion of management time resulting from or relating to the special sub-committee review and related regulatory proceedings and litigation.

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Other factors that could cause the company’s actual future results to differ materially from those expressed in the forward-looking statements set forth in this release include, without limitation, other litigation (unrelated to stock option granting practices), sales of the company’s titles, shifts in consumer spending trends, the seasonal and cyclical nature of the interactive game market, the company’s ability to predict consumer preferences among competing hardware platforms (including next-generation hardware), declines in software pricing, product returns and price protection, product delays, retail acceptance of the company’s products, adoption rate of new hardware and related software, industry competition, rapid changes in technology and industry standards, protection of proprietary rights, maintenance of relationships with key personnel, vendors and third-party developers, international economic and political conditions, integration of recently acquired subsidiaries and identification of suitable future acquisition opportunities, and the risks identified in the company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q and Current Reports on Form 8-K.  The forward-looking statements in this release are based upon information available to the company as of the date of this release, and the company assumes no obligations to update any such forward-looking statement.  The company may change its intention, belief or expectation, at any time and without notice, based upon any changes in the enumerated factors or in the company’s assumptions, or otherwise, and forward-looking statements believed to be true when made may ultimately prove to be incorrect.  These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond the company’s control and may cause actual results to differ materially from our current expectations.

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