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Activision Launches MechWarrior 2: Mercenaries with One of the Industry's Largest Consumer Specific Promotional Programs

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Best Buy, CompUSA, Computer City, Electronics Boutique, Egghead and Media Play Have Teamed Up for Unique Mech Month Promotions

Los Angeles, CA, October 3, 1996 -- Activision, Inc. (Nasdaq: ATVI) has teamed up with Best Buy, CompUSA, Computer City, Electronics Boutique, Egghead and MediaPlay to create one of the interactive entertainment industry's largest consumer-specific promotions -- Mech Month -- to support the launch of MechWarrior 2: Mercenaries. Currently available at 10,000 retail outlets nationwide, Mercenaries is the sequel to the blockbuster hit MechWarrior 2, which has shipped more than 700,000 retail units to date. Running from October 1 - October 31, 1996, the million dollar Mech Month campaign features retail-specific promotions that include instant rebate programs, special coupon offers and significant in-store merchandising programs.

The promotion is backed by a multi-tiered marketing campaign that includes in-store merchandising such as shelf-talkers, standees and 70-unit floor displays as well as extensive advertising in consumer, retail and online publications.

Additionally, participating retailers nationwide are offering consumers special price promotions that allow them to purchase titles from Activision's MechWarrior library at a reduced cost. Consumers can buy MechWarrior 2 and MechWarrior 2 Expansion Pack: Ghost Bear's Legacy for either MS-DOS or Windows 95 for approximately $5-10 off everyday retail prices.

"MechWarrior 2: Mercenaries is one of the industry's most highly anticipated sequels," said Bobby Kotick, CEO and Chairman, Activision. "We're launching this triple A title with our most comprehensive and aggressive marketing campaign to date. This broad-based promotional strategy will give Activision and MechWarrior 2: Mercenaries premium placement as we enter the holiday season."

Details of the retail store promotions are outlined below:

CompUSA

In an exclusive offer, CompUSA customers can buy MechWarrior 2: Mercenaries and receive a free copy of MechWarrior 2 for MS-DOS through the mail. Details of the program will be available on tear pads in approximately 100 CompUSA stores.

Computer City

Available in approximately 110 locations through October 31, Computer City customers can participate in a mail-in rebate program that enables them to receive a $10 rebate off the purchase price of MechWarrior 2: Mercenaries.

Egghead

Through a special promotion with Computer Life magazine, Egghead consumers will be eligible for a $10 rebate off the purchase of MechWarrior 2: Mercenaries. The rebate coupon offer will be bound inside the November issue of Computer Life and is redeemable at any one of approximately 150 Egghead stores.

Electronics Boutique During Mech Month, more than 430 Electronics Boutique stores will feature window displays of MechWarrior 2: Mercenaries. The Mercenaries themed-displays will include 5 standees and 3 x 2 banners.

MediaPlay

MediaPlay customers have the opportunity to receive a free, limited edition MechWarrior 2: Mercenaries poster with purchase of the game. Posters will be available at approximately 90 MediaPlay locations while supplies last.

Best Buy

Approximately 260 Best Buy stores nationwide are offering customers a $10 instant rebate on MechWarrior 2: Mercenaries.

# # #

Activision, Inc. is a publicly held developer and publisher of interactive entertainment software for Microsoft Windows and MS-DOS-compatible, Macintosh and other computers, as well as Nintendo, Sega, and Sony PlayStation game systems. Headquartered in Los Angeles with offices in London, Tokyo and Sydney, the company sells and markets products under the Activision and Infocom trade names.

The statements contained in this release that are not historical facts are "forward-looking statements." The company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward-looking statements. These important factors, and other factors that could affect Activision, are described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1996. Readers of this press release are referred to such filings.

MechWarrior, BattleTech, BattleMech, Mech are registered trademarks and MechWarrior 2: Mercenaries, Ghost Bear's Legacy and MercNet are trademarks of FASA CORPORATION.

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