1002607--9/18/2007--ATARI

related topics

{property, intellectual, protect}

{customer, product, revenue}

{product, market, service}

{capital, credit, financial}

{personnel, key, retain}

{debt, indebtedness, cash}

{provision, law, control}

{cost, operation, labor}

{condition, economic, financial}

{loss, insurance, financial}

{competitive, industry, competition}

{investment, property, distribution}

Our revenues will decline and our competitive position will be adversely affected if we are unable to introduce successful new products on a timely basis. Our rights to use the Atari name are limited. Lack of funds and limits on our license rights may limit our ability to expand into new business activities. The loss of Wal-Mart, GameStop, Target, or Best Buy as key customers could negatively affect our business. Our results of operations and competitive position may be adversely affected if we are unable to anticipate and adapt to rapidly changing technology, including new console technology. We may be unable to develop and publish new products if we are unable to secure or maintain relationships with leading independent video game software developers. If we are unable to maintain or acquire licenses to intellectual property, our operating results will be adversely impacted. Termination or modification of our agreements with hardware manufacturers will adversely affect our business. The loss of our senior management and skilled personnel could negatively 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. If our distribution arrangements with IESA are adversely modified or terminated, we may lose revenue or incur disruption in the distribution of our products. Revenues from our distribution business may decline as competition increases and Internet technology improves. Revenues from our distribution business may decline if the products which we distribute for IESA are reduced or products we distribute for third-party developers become unavailable to us. 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 Our performance may be affected by IESA s performance and financial stability. 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. Our restructuring efforts will create short term costs that may not be offset by increased efficiencies. Our credit facility could be terminated.

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1002607--9/18/2007--ATARI_INC