Activision Signs Agreement to Publish First Three Titles and to Acquire Equity Stake in Newly Formed Redline Games

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Santa Monica, CA, September, 1997 - Continuing its quest to bring great games to the interactive marketplace, Activision, Inc. (Nasdaq: ATVI) has signed a long-term exclusive agreement with Redline Games to publish the company's first three titles and acquire an equity interest in the newly formed game developer.

The first Redline title will be a role-playing/strategy game which Activision expects to release in 1998. The recently formed development company is headed by James Anhalt and Ronald Millar, two experienced and accomplished programmers and designers who between them have held prominent positions on a number of hit games including Diablo, Warcraft II, MechWarrior 2 and Pitfall: The Mayan Adventure.

The announcement underscores Activision's mandate to significantly expand its publishing efforts through internal product development, external product acquisitions, to acquire premier game developer Raven Software, and it maintains strong relationships with such renowned third-party developers as id Software, Ritual Entertainment, ParSoft Interactive, Titanic Entertainment, Eutechnyx, Ltd. and Kalisto Entertainment. The agreement also marks Activision's second equity investment in a game developer. Last year, the company acquired a stake in Titanic Entertainment, which is currently developing NetStorm, Activision's upcoming Internet-based strategy game.

"The opportunity to team up with talent like James and Ron happens only rarely," said Bobby Kotick, Chairman and CEO, Activision, Inc. "We are honored that they chose Activision as their partner."

"Activision has an exciting future and this is a great opportunity for us," states James Anhalt, President and Lead Programmer of Redline Games. "They have an excellent understanding of the gaming industry and their vision for the future is second to none."

A longtime consultant to Activision and other premier game developers, Anhalt has programmed for a number of hit titles including MechWarrior II, Pitfall: The Mayan Adventure, Muppet Treasure Island, Battle Chess II, The Lost Vikings and The Death and Return of Superman.

"Now that this relationship is in place, we can focus our minds on creating what we feel will be some of the best games of the coming years," adds Ronald Millar, Vice President and Lead Designer of Redline Games.

Millar held the title senior game designer at Blizzard Entertainment where he worked on such hits as Diablo and Warcraft II, in addition to such highly anticipated titles as Warcraft Adventures and Starcraft. An industry veteran, Millar has served as artist, writer, producer and creative ddirector on a number of console and PC games including The Lost Viking Series, Rock `n Roll Racing, The Death and Return of Superman and Blackthorne. Millar currently is a design consultant for Dark Reign, Activision's real-time strategy title.

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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 Sony PlayStation, Sega and Nintendo game systems. Activision is headquartered in Santa Monica with offices in Madison, Wisconsin, the United Kingdom, Germany, Japan and Australia.

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