GT INTERACTIVE AND MICROPROSE AGREE TO END MERGER PLAN, BUT WILL WORK TOGETHER ON MARKETING, DISTRIBUTION INITIATIVES

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New York, NY/Alameda, CA, December 5, 1997 -- MicroProse, Inc. (NASDAQ:MPRS) and GT Interactive Software Corp. (NASDAQ: GTIS) today announced that both companies' boards of directors have unanimously and mutually agreed to terminate the definitive merger agreement which was announced on October 5. The two companies will continue to work together on a number of marketing and distribution initiatives. Because the agreement to terminate the merger is mutual, there will be no breakup fees to either company.

According to both Ron Chaimowitz, president and chief executive officer of GT Interactive, and Stephen M. Race, MicroProse's chief executive officer: "Both managements agreed that the time simply is not right for combining the two businesses. Nevertheless, there are important areas in which we can work together. For example, GT Interactive will continue distribution of MicroProse products in certain major mass market chains in the U.S. as well as that of Macintosh versions of MicroProse products, under prior agreements. GT also holds PC budget rights to the MicroProse back catalog."

"While our acquisition of MicroProse will not be completed, through both increased investment in our internal development studios and acquisitions of new development studios, we will continue to focus on the expansion of our publishing business, which accounts for more than 60 percent of our total revenues," said Ron Chaimowitz, president and chief executive officer of GT Interactive. "We believe that this successful ongoing strategy will further strengthen our global leadership position in interactive entertainment."

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Headquartered in NY, GT Interactive is a leading global publisher of entertainment and edutainment software under the GT Interactive, Humongous Entertainment, Cavedog Entertainment, SingleTrac and MacSoft brands for personal computers as well as video game systems from Sony, Nintendo and Sega. GT Interactive operates development studios in Seattle, Salt Lake City and San Luis Obispo, CA. The company is also a leader in value-priced software under the WizardWorks, GameWizards and Slash brands.

MicroProse is a leading developer and publisher of interactive entertainment software for use on CD-ROM-based personal computers. The company is also developing software for use on Internet and online gaming services. MicroProse has its headquarters in Alameda, California and employs approximately 400 people worldwide. Its five development studios are located in Alameda, California; Hunt Valley, Maryland; Chapel Hill, North Carolina; Austin, Texas; and Chipping Sudbury, England. Products are available worldwide and are sold through major distributors, retailers and mass merchants.

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