1002607--7/1/2008--ATARI

related topics

{property, intellectual, protect}

{customer, product, revenue}

{debt, indebtedness, cash}

{provision, law, control}

{personnel, key, retain}

{competitive, industry, competition}

{loss, insurance, financial}

{product, market, service}

{capital, credit, financial}

{investment, property, distribution}

Our revenues are dependant to a substantial extent on the ability of IESA to develop, or obtain the right to publish, successful video game products. Our rights to use the Atari name are limited. Our success depends on continued popularity of packaged games. The loss of GameStop, Wal-Mart, or Best Buy as key customers could negatively affect our business. Termination or modification of our agreements with hardware manufacturers will adversely affect our business. If returns and other concessions given to our customers exceed our reserves, our business may be negatively affected. Significant competition in our industry could adversely affect our business. We may face increased competition and downward price pressure if we are unable to protect our intellectual property rights. We may face intellectual property infringement claims which would be costly to resolve. We may be burdened with payment defaults and uncollectible accounts if our customers do not or cannot satisfy their payment obligations. Our software is subject to governmental restrictions or rating systems. We may become subject to litigation which could be expensive or disruptive. RISKS RELATED TO OUR CORPORATE STRUCTURE AND FINANCING ARRANGEMENTS IESA controls us and could prevent a transaction favorable to our other stockholders. Our affiliates retain considerable control over the Atari trademarks, and their oversight or exploitation of such trademarks could affect our business.

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1002607--7/1/2008--ATARI_INC