NEXT GENERATION ACTIVISION
August 2, 2000

Activision today announced financial results for the first fiscal quarter ended June 30, 2000. Net revenues were $84.5 million, compared to net revenues of $84.1 million reported for the first quarter last fiscal year. Net loss for the first fiscal quarter was $5.2 million ($0.21 per share), compared with a net loss of $4.6 million ($0.19 per share) reported for the same period last year.

Robert A. Kotick, Chairman and CEO, stated, "According to NPD TRSTS, Activision ranked as the #2 third-party U.S. publisher for the quarter and the only console publisher to show triple digit year-over-year growth on a monthly basis in dollars for the last eight consecutive months. U.S. retail sell through of our console and PC games increased 125% over last year's first quarter, versus the market's overall increase of 23%. For the quarter, Activision achieved an overall market share of 6.9% of dollar sales, almost double our 3.8% share for the same period last year, as reported by NPD TRSTS and PC Data.

"Our continued success was the result of strong consumer demand for our products. Tony Hawk's Pro Skater has sold approximately three million units worldwide and remains a top 10 title for the PlayStation, Nintendo 64, Dreamcast and Game Boy Color. Additionally, during the quarter we released seven new games including Vampire: The Masquerade Redemption and Dark Reign 2 for the PC, Covert Ops: Nuclear Dawn for the PlayStation and Virtual On: Oratorio Tangram for the Dreamcast."

Kotick continued, "We look forward to the impending launch of PlayStation 2 in October and currently have 12 titles in various stages of development, including four extreme sports games -- Tony Hawk's Pro Skater 3, Mat Hoffman's Pro BMX 2, Kelly Slater's Pro Surfer and Shawn Palmer's Pro Boarder Cross. We expect that the release of our first PlayStation 2 game, Orphen, will coincide with or shortly follow the platform's launch. We believe that Orphen will be a leading game for the PlayStation 2."

Kotick concluded, "We plan to expand our presence on the handheld platforms and expect to have at least three titles to coincide with the release of Nintendo's Game Boy Advance next spring. We also are preparing to aggressively support Microsoft's X-Box and Nintendo's Dolphin, both of which are slated to launch next year."