Atari Announces General and Administrative Overhead Action Plan

Atari, Inc. (Nasdaq: ATAR), an interactive entertainment company, today announced a reorganization of its general and administrative functions.

The reorganization plan reduces Atari's total workforce by approximately 20%, which includes a reduction of administrative workforce of approximately 26%. This plan was approved by the Board of Directors on April 10, 2007 and communication to employees was completed on April 30, 2007. The Company anticipates the workforce reductions to be completed by July 31, 2007 and will record a restructuring charge during fiscal 2008 of approximately $0.8 million to $1.1 million.

"We expect that today's reorganization will continue to reduce Atari's general and administrative cost," stated David Pierce, President and Chief Executive Office of Atari, Inc. "These actions, though difficult, are a significant first step in reorganizing Atari and demonstrate our commitment to restoring shareholder value."