ACCLAIM POSTS LOSS
November 29, 2000

Acclaim today reported a net loss for the fiscal year ended August 31, 2000.

"Fiscal 2000 was a difficult, transition year for Acclaim", the Company said. "However, expenses have been sharply reduced and we have an exciting product line-up for fiscal 2001. As the key post-Thanksgiving sell-through reports appear to indicate, our new products are being positively accepted, especially Mary Kate and Ashley's Magical Mystery Mall for Playstation, and Dave Mirra's Freestyle BMX. Reflecting as well the benefits of a more tightly focused marketing effort, we anticipate a profitable first quarter and based on the plan that we have put in place, expect fiscal 2001 as a whole to be a turnaround year."

Revenues for fiscal 2000 were $188.6 million compared to $431.0 million for the fiscal year ended August 31, 1999. For the fiscal year ended 2000, the Company reported a net loss of $131.7 million, or 2.36 per fully diluted share, compared to net earnings of $36.0 million or $0.57 per fully diluted share for the fiscal year ended August 31, 1999.

The lower net revenues for fiscal year 2000 were predominantly caused by delays in the introduction of new titles, lower than anticipated sales of certain titles, a decline in the market for N64 software, and a significant slowdown in the rate of growth for 32/64-bit hardware systems.

Operating expenses were also negatively impacted by increased research and development expenses, a necessary expenditure during the industry's shift to new platforms. For fiscal 2001 and beyond, Acclaim is focusing its internal development resources exclusively on next gen systems.

The Company has implemented certain cost reduction measures, which it believes should reduce aggregate operating expenses by approximately 30% in fiscal 2001 compared to fiscal 2000. These cost reduction measures include cancellation of certain development projects, selected staff reductions, reduced selling and marketing expenses, and stricter expenditure controls.

Current plans call for the release of 43 SKU's during fiscal 2001, namely: 12 titles for PS2, 12 titles for PS1, 4 PC titles, 5 Dreamcast titles, 7 titles for the Game Boy Color, and 3 titles for Game Boy Advanced.