Atari Jaguar Press Releases: 1996-97

LAS VEGAS — Jan. 2, 1996 — Atari Corp., founder of America's video game industry, has broadened its business with the formation of Atari Interactive, a new division dedicated to the development and distribution of multi-platform interactive entertainment.

Ted Hoff, president, Atari USA, formally announced the company's new division this week.

"With the formation of Atari Interactive, we are creating a new division to address the worldwide PC market," Hoff stated, adding, "Atari Interactive will allow consumers to receive our entertainment products on a variety of formats, from existing platforms and consoles such as our own Jaguar system, to PC, Mac, the Internet and Web sites."

Over the past 25 years, Atari's creativity and vision have led to the development of exciting and successful games such as "Tempest," "Missile Command" and "Crystal Castles." Now, the company will continue its tradition of innovation, combined with its concern for meeting consumer needs, by developing entertaining, multi-platform software.

Atari Interactive software will feature Atari's classic arcade-style games updated to play on a number of gaming environments. Interactive software enthusiasts will be able to enjoy enhanced Atari classics such as "Tempest 2000," "Missile Command 3D" and "Return to Crystal Castles."

In addition, they can experience the robust, rich environments of Atari Interactive's new games, like the "Interactive Rocky Horror Show" and "Virtual War." Atari Interactive's games will be available to preview through the Atari Web site on the Internet (address: http://www.atari.com).

Four CD-ROM titles under the Atari Interactive name will be available in the first quarter. These premier entertainment software titles are:

"Tempest 2000": An American video game classic first developed by Atari in 1981 as an arcade game. The CD title features elaborate and enhanced 3-D graphics and animation, as well as a CD-quality techno-rave soundtrack. "Highlander": A new action-adventure CD-ROM title that allows players to become Quentin MacLeod, the last immortal, known as "The Highlander." As Quentin MacLeod, players encounter challenging and complex puzzles in their quest to defeat the evil Kortan.

"Baldies": As rulers of a fictitious world populated by builders, workers, soldiers and scientists (who are bald, of course), players must determine how best to employ their resources to safeguard their world while at the same time eliminate the enemy. "Baldies" has network capability, which allows up to four players to enjoy the game at once, delivering four times the fun!

"FlipOut!": Players maneuver their way through 14 different areas of The Cheese Planet while trying to solve increasingly difficult puzzles (levels range from Normal to Psychotic). Whether they are in Mt. Rushmore or the Sphorkle Diner, players need to keep an eye out for mischievous aliens who'll trip them up just for the fun of it.

Additional titles currently under development will be available throughout 1996.

In discussing Atari Interactive's games, Hoff explained: "The introductory titles by Atari Interactive are designed to appeal to long-time fans of classic arcade games who want a different, or perhaps new medium in which to play those games, as well as novice players eager to test-drive this entertainment form on their PC.

"By offering game enthusiasts more access options to superior products, we have enhanced their opportunity for convenient, exciting and challenging entertainment."

SUNNYVALE, Calif. — Feb. 13, 1996 — Atari Corporation and JTS Corporation today agreed to merge the two companies. Atari is the pioneer in multimedia video entertainment and JTS is a manufacturer of computer disk drives.

"This merger puts us in a great position to capitalize on a very experienced management team and a rapidly growing disk drive market. JTS is using innovative technology, particularly in the 3" disk drive market, and we are excited about its prospects," said Jack Tramiel, chairman of Atari.

"Our partnership gives us the ability to expand our capabilities and pursue new opportunities," said Tom Mitchell, president and chief executive officer of JTS. "Dataquest has predicted that 115 million disk drive units will be shipped worldwide in 1996, and it is a great time for us to be participating in this market," said Mitchell.

Under the terms of the agreement, the new corporation will operate under the name of JTS Corporation and the officers of JTS will become the officers of the merged company. The Atari entertainment business and the JTS disk drive business will operate as separate divisions of the new merged company.

Atari has extended a bridge loan to JTS in the amount of $25,000,000. In the event that the merger is not consummated, the bridge loan will be convertible into shares of JTS Series A Preferred Stock at the option of Atari or JTS and subject to certain conditions.

As a result of the transaction, Atari stockholders will hold approximately 60% of the outstanding shares of the new company following the merger. The transaction is structured to qualify as a tax-free reorganization and will be accounted for as a purchase.

The board of directors of Atari and JTS have approved the definitive agreement. The merger is subject to certain shareholder and regulatory approvals and other conditions to closing. The parties anticipate the transaction will close toward the end of the second calendar quarter of 1996.

JTS was formed in 1994 by Jugi Tandon, the company's current chairman of the board. Tandon is well-known in the computer storage industry for his ability to develop innovative products for the marketplace. Tandon will remain chairman of the board of the new company.

Tom Mitchell was a cofounder of Seagate Technology and president and chief operations officer of both Seagate and Conner Peripherals. Mitchell brings unparalleled industry and operational experience in the high-volume disk drive market. He is a pioneer in disk drive manufacturing in Singapore, Thailand, China and India.

For more than twenty years, Atari has provided consumers with high-quality, value-priced entertainment. Atari markets Jaguar, the only American-made, advanced 64-bit entertainment system and licenses and markets software in the multi-platform, multimedia market. Atari is located in Sunnyvale, California.

Founded in 1994, JTS Corporation develops and manufactures hard disk drives for the computer industry. JTS has recently introduced its new 3" Nordic product for the portable computer market. Headquartered in San Jose, California, with manufacturing facilities in Madras, India, JTS employees 1,300 people worldwide.

The above statements regarding the disk drive industry and JTS' prospects are forward looking statements and involve a number of risks and uncertainties. Among the factors that would cause actual results to differ materially are the following: business conditions and growth in the portable computer industry and in the general economy; competitive factors, including pricing pressures; availability of components from third parties; risks associated with manufacturing of products in India or other overseas jurisdictions and risks associated with JTS' ability to ramp its manufacturing operations, including cost and yield issues.

BETHESDA, Md. — Feb. 13, 1996 — In today's news alert to subscribers, Multimedia Wire reports that Atari is actively in negotiations to license its video game assets including hardware, software and various patents to another company or entities.

As previously reported by Multimedia Wire, the interactive entertainment news service, Atari Corp. will merge with a computer components manufacturer (JTS Corp.). Multimedia Wire first broke news of the proposed merger in an exclusive report on Jan. 18, 1996, suggesting at that time the company would exit the video game business.

Atari's exit of the video game business is still a possibility — should no licensees surface. Licensing discussions have been taking place over the past several months, Multimedia Wire has learned. Any such licensee would likely be responsible for further software and/or hardware development, marketing and distribution.

"The news of the merger could very well hold opportunity for Atari shareholders," said Chris Sherman, editor of Multimedia Wire, "but it leaves in question the state of Atari's video game hardware and software business, particularly the Atari Jaguar."

Multimedia Wire has learned through sources close to Atari that Ted Hoff, former president of Atari's North American operations, was in discussions with several major Atari shareholders to take the video game portion of the business private. Those discussions subsequently fell apart.

Atari's video game assets include its Jaguar console game machine as well as such classic video game titles as Defender and Tempest. Additionally, Atari owns several patents.

"Regardless of the outcome, the landscape of the video game industry changed significantly today," said Sherman. From Multimedia Wire 1-18-95 Atari exiting video game business, liquidating gaming assets. Atari Corp. is throwing in the video game towel. Company sources tell MMWIRE Atari is liquidating all its video game assets, including the Jaguar, Jaguar CD and Atari Interactive, the company's recently launched PC software division.

It would appear that the Tramiel family, the largest Atari shareholders (with approx. 47%), have decided to apply Atari's $50 mill. cash reserves in a business other than video games — or any consumer product for that matter. The sudden move comes on the heels of the recently launched Atari Interactive.

Just last week Atari told MMWIRE it expected to use a portion of that $50 mill. to invest in video game software companies.

The closed video game division leaves behind an installed based of 150,000 Jaguar game systems and outstanding title development contracts amounting an estimated $6 to $8 mill. Approx. 20 employees have been laid off, leaving 30 remaining. These too are expected to depart shortly. Layoffs include the entire Interactive division including management, accounting and legal personnel.

The Tramiels intend to exit the video game business, liquidating those assets. MMWIRE believes the Tramiels intend to merge the resulting company with a computer components manufacturer.

While it is not known who Atari intends to merge with, the combined companies are expected to trade under the current Atari stock symbol .

Founded in June 1994, Bethesda, Md.-based Multimedia Wire is the leading new service dedicated to interactive entertainment and new media business. An archive of Multimedia Wire stories, including stories on Atari and other interactive entertainment companies, can be found on MMWIRE Online on the Internet at http://www.mmwire.com

SAN FRANCISCO — Feb. 13, 1996 — Rocket Science Games Inc.'s President, CEO and Co-Founder Steve Blank Tuesday announced a major step in Rocket Science's studio restructuring campaign with the hiring of a new creative team: Bill Davis, vice president of product development and Will Harvey, vice president of engineering.

"Rocket Science Games is moving forward with a simple, clear and vital philosophy, that great games begin with great game play, first and foremost, supported by leading edge technology," said Blank. "Bill and Will both have proven track records in the games business, with a high success quotient. In a relatively young industry, they have a rare level of experience."

Davis, who reports to COO Jim Wickett, leads game design and production for the Rocket Science studio and is also Rocket Science's spearhead for pursuing outside licensing relationships and forging creative partnerships for the company.

Before joining Rocket Science, Davis was vice president of creative development at Sierra On-Line. Joining Sierra in 1989 as their first art director, Davis' art and visual arts experience was critical to the development of such hit titles as Sierra's first CD-ROM game, "Mixed Up Mother Goose," and the SPA award-winning "King's Quest V." In 1992, six more of Davis' Sierra On-Line games were nominated for SPA awards.

Prior to his experience in the interactive entertainment industry, Davis honed his technical/art skills in television and film. During this period he designed and directed more than 150 animated television commercials, created numerous illustrations for a variety of television shows, and won an Emmy Award for his work on the piece "NBC, The First Fifty Years: A Closer Look."

Harvey, who also reports to Wickett, is responsible for managing the engineering and programming of games and building the technical teams. Prior to beginning his tenure at Rocket Science, Harvey headed his own company, Sandcastle, whose titles include "The Immortal." Rocket Science absorbed Sandcastle in 1995, with Will joining the Rocket Science team. Harvey's game developing experience began at the age of 15, when he developed "Music Construction Set" for Electronic Arts, which went on to sell more than 400,000 units.

Rocket Science Games has hired more than 20 experienced game designers, producers and engineers this past year, among them James "Purple" Hampton, game designer and producer on "Alien vs. Predator" for Atari Jaguar; Parker Davis, award-winning designer for Disney's "Jungle Book" for Super NES, design developer for "RoboCop vs. The Terminator" and "Ectosphere" for Virgin; Darren Atherton, Electronic Arts' "Bump in the Night" producer for PlayStation and associate producer and assistant producer for half a dozen Learning Company titles; and J. Patton, former director of licensees and contracts at Atari, who helped bring "Brett Hull NHL Hockey," "Breakout 2000," and the "Interactive Rocky Horror Show" out for Jaguar.

Rocket Science Games publishes and markets next-generation gaming and interactive entertainment software for PCs, the Internet and video game consoles. Rocket Science products and merchandise can be ordered on-line at http://www.rocketsci.com or by phone: (800) 98 ROCKET.

VIACOM NEW MEDIA ZOOPS THE WEB AGAIN WITH JAVA-POWERED DEMO! GAMING FANS CAN DEMO ZOOP IN REAL TIME USING WEB BROWSERS SUPPORTING JAVA

A real-time demo of the game developed using Sun Microsystems Inc.'s innovative Java programming language is now available on the World Wide Web. The announcement was made Wednesday my Michele DiLorenzo, president, Viacom New Media, a unit of Viacom Inc. The instantly playable single-level demo can be found on the ZOOP home page (http://www.zoop.com) or via Viacom New Media's World Wide Web site (http://www.viacomnewmedia.com).

Additionally, more than 95,000 copies of a three-level downloadable ZOOP demo have been accessed from the ZOOP home page.

"We've already had phenomenal success placing our downloadable ZOOP demo on the Web," said DiLorenzo. "It's been a terrific way to get people to try ZOOP. Now with one of the hottest Java-powered applets on the Web, we'll drive even more traffic to our site.

"Internet travelers with the latest Web browsers won't have to wait to download files to satisfy their curiosity and play the game. We think that taking advantage of this latest technology can only leave consumers wanting more ZOOP excitement."

"The real-time ZOOP demo on Viacom New Media's Web site capitalizes on Java's innovative and elegant features. Java is simple, portable, multi-threaded and dynamic. And since Java is architecture-neutral, the demo is available to PC and Mac users alike," said Ruth Hennigar, general manager, Language and Applications at JavaSoft, an operating company of Sun Microsystems.

Only those Web surfers with browsers that include the Java technology, such as Netscape 2.0b3, will be able to try the demo, though anyone can download the earlier demo.

The ZOOP home page also features strategy hints, screen shots, video and audio clips. Java aficionados can find additional applets by exploring Viacom New Media's World Wide Web site. Lively, animated icons on a floating navigation bar allow Web users with browsers incorporating Hot Java technology access to various areas of the site without searching for hotlinks in the text or on the bottom of each page.

A click on the "chatting mouth" icon takes users seeking the latest information straight to the "Buzz" section. A "blinking eyeball" icon links to the search function, and a "waving hand" offers help.

ZOOP has been garnering rave reviews since its debut in October and has just been named a finalist in the Best Strategy Software category for the Software Publishers Association's prestigious 1996 Codie Awards. Simple to learn yet impossible to master, the game challenges men, women and kids regardless of their level of gameplay skills.

Players must act fast and think even faster to defend ZOOP's center square. They fire against advancing rows of multi-colored, fast-moving shapes that simultaneously approach from four different directions. ZOOP taunts and challenges with shapes that change color and a clever background visual deception — called Opti-Challenge — that forces the eye to look one way as approaching shapes invade from other directions.

ZOOP is currently available for PC diskette, Macintosh diskette, PlayStation, Super Nintendo Entertainment System, Nintendo Game Boy, Sega Genesis and Sega Game Gear. In addition, Viacom New Media has licensed ZOOP on additional platforms including Atari Jaguar and Tiger Electronics Handheld. Internationally, ZOOP is available at retail on five platforms: PC diskette, Macintosh diskette, Super Nintendo Entertainment System, Nintendo Game Boy and Sega MegaDrive.

Some of the most creative talents in game development and design joined forces in the development of ZOOP. Peter Tattersall and Jason McGann, directors of the U.K.-based game design company Hookstone Ltd., created, designed and developed the simple, fun, non-violent concept for ZOOP.

Sandra Higashi and Byron Glaser, a renowned Virginia-based graphic design team known for their fresh, imaginative and striking "pop art" designs, created the stylized background graphics.

ZOOP is a trademark of Viacom. Java and Hot Java are trademarks of Sun Microsystems.

Viacom New Media product is distributed across Europe by CIC. With headquarters in London, CIC is a joint venture of Paramount Pictures and MCA Inc., serving as both companies' international video distribution organization. CIC currently distributes Paramount's video products through its subsidiaries and licensees worldwide, excluding the United States and Canada. Paramount Pictures is a unit of Viacom Inc.

In addition to ZOOP, Viacom New Media's 1995 line-up includes the best-selling MTV'S BEAVIS AND BUTT-HEAD IN VIRTUAL STUPIDITY, CONGO: THE MOVIE — DESCENT INTO ZINJ and MTV UNPLUGGED, for CD-ROM, and PHANTOM 2040 for SNES, Sega Genesis and Sega Game Gear. Its award-winning kids' product line was recently joined by NICK JR. PLAY MATH! and THE INDIAN IN THE CUPBOARD, for CD-ROM, and AAAHH!!! REAL MONSTERS for SNES and Sega Genesis.

This year's schedule of Viacom New Media titles includes STAR TREK: DEEP SPACE NINE HARBINGER, the cyber classic SNOW CRASH and cult favorite AEON FLUX.

Viacom New Media, a unit of Viacom Interactive Media, is a publisher of interactive entertainment software for Viacom.

SUNNYVALE, Calif. — May 20, 1996 — Atari Corporation today reported its financial results for the first quarter ended March 31, 1996.

Net sales for the first quarter of 1996 were $1.3 million as compared to $4.9 million for the first quarter of 1995. As previously reported, the Company sold the remaining balance of its holdings in a publicly traded security during the first quarter of 1996 and realized a gain of $6.3 million.

Sales of the Jaguar continue to be disappointing and the Company made substantial writedowns of inventory in the first quarter of 1996. The Net Loss for the first quarter of 1996 was $.8 million compared to a net loss of $4.4 million for the first quarter of 1995. The Company is pursuing sales of its inventory of Jaguar product in Europe and North America.

On February 13, 1996, Atari Corporation and JTS Corporation announced plans to merge the two companies. JTS is a manufacturer of personal computer hard disk drives. Under the terms of the agreement, the new corporation will operate under the name of JTS Corporation and the officers of JTS will become the officers of the merged company. The Atari entertainment business and the JTS disk drive business will operate as separate divisions of the new merged company.

In connection with the merger Atari has extended a bridge loan to JTS in the amount of $25 million. In the event that the merger is not consummated, the bridge loan may be convertible into shares of JTS Series A Preferred Stock at the option of Atari or JTS and subject to certain conditions.

The boards of directors of Atari and JTS have approved the definitive merger agreement. The merger is subject to certain shareholder and regulatory approvals and other conditions to closing. It is anticipated that the transaction will close toward the end of the second calendar quarter of 1996.

Atari has been in the video game business for over twenty years. Today, Atari markets Jaguar, the only American made, advanced 64-bit entertainment system and licenses its intellectual property to third parties. Atari is headquartered in Sunnyvale, California.

Condensed Consolidated Statements of Operations (in thousands, except per share)
	Quarter Ended
	Mar. 31, 1996	Mar. 31, 1995
Net Sales	$1,272	$4,874
Operating Income (loss)	$(7,149)	$(5,158)
Exchange Gain (loss)	(60)	5
Other Income (Expense) Net	6,640	355
Interest Income Net of Interest (Expense)	237	372
Income (loss) Before Income Taxes	$(806)	$(4,426)
Net Income (loss)	$(806)	$(4,426)
Earnings Per Common and Equivalent Share:
Net Income (loss)	$(0.01)	$(0.07)
Weighted Average number of shares used in computation	63,701	63,701

1997

ORLANDO, Fla. — Jan. 20, 1997 — Time Warner Cable's Full Service Network(tm) adds CyberCheckers and Classic Checkers, bringing the number to 30 games available to customers on the FSN.

CyberCheckers is a futuristic board game in which players' checkers pieces are represented by robots. The robots fight in various battle arenas to determine the winner of the square. Classic Checkers is the traditional board game featuring a 24-bit color checkers board which offers CD-quality background music during gameplay. Both of these games are network games which means customers can compete against other households on the network, as well as competing against the computer. "This is a fresh approach to one of the oldest and most universally known games," said Jonathan Browne, president of Gorilla Systems.

CyberCheckers and Classic Checkers can work in a one-way digital broadcast network, as well as in a two-way, multiplayer environment.

"The games we're testing on the Full Service Network will help us understand consumer demand for games available through one-way and two-way digital set-tops, such as our Pegasus box," said Hal Wolf, FSN vice president-content.

CyberCheckers and Classic Checkers join 22 Atari Jaguar 64-bit games and six other network games.

Time Warner Cable's Full Service Network is a digital, interactive television network that provides subscribers in Orlando with on-demand access to a variety of entertainment and informational services. The Full Service Network is integrating the technologies from the cable, computer, and telephone industries to provide interactive television and high-speed PC and TV access to the World Wide Web.

Time Warner Cable is the nation's second largest cable television operator, currently serving 12.1 million customers in 37 states. It is a unit of Time Warner Entertainment Co., L.P.

1998

SAN JOSE, Calif. – March 13, 1998 – JTS Corporation (Amex: JTS), announced the completion of the sale of the company's Atari Division assets to HIACXI Corporation, a wholly-owned subsidiary of Hasbro Interactive, Inc. (Amex: HAS) for $5 million in cash.

"The proceeds from the sale of these non-core assets will be utilized to support our working capital requirements as we increase our production," said Joseph Prezioso, Executive Vice President, Finance and Administration, and Chief Financial Officer of JTS Corporation.

The Atari Assets were acquired by the company in July 1996 when the company merged with Atari Corporation and consisted primarily of Atari home computer games and the intellectual property rights and agreements associated with such games.

JTS Corporation is a leader in information storage products. The company designs and manufactures hard disk drives for personal computers, and markets them to leading systems manufacturers and selected resellers. JTS is committed to providing world class hard drives at value prices to support personal computing. The president and chief executive officer of JTS, Tom Mitchell, was formerly the President and Chief Operating Officer of Conner Peripherals and Co-founder, President and Chief Operating Officer of Seagate Technology.

For further information, contact JTS Corporation at 166 Baypointe Parkway, San Jose, California, 95134. Phone: 408-468-1800 Fax: 408-468-1619. Website: www.jtscorp.com

BEVERLY, Mass. – March 16, 1998 – Leading interactive games publisher Hasbro Interactive, Inc., a subsidiary of Hasbro, Inc. (AMEX:HAS), announced today that a subsidiary has acquired copyrights, trademarks, patents and other intellectual property assets of the Atari Division of JTS Corporation, giving Hasbro Interactive rights to some of the greatest video games and play patterns ever created for multimedia entertainment. The Atari properties and assets include over 75 game properties including the legendary titles Centipede, Missile Command, Pong, Breakout and Tempest. Hasbro Interactive plans to release its first Atari title this fall with Centipede for both the PC and Sony PlayStation game console.

"We are thrilled that the classic Atari game properties will now be a part of the Hasbro family," said Tom Dusenberry, President of Hasbro Interactive. "These ground-breaking games helped pioneer the video game industry," added Dusenberry. "We intend to bring these classics back to life by updating them with the latest technology and interactive game design, while preserving their heart and spirit." Hasbro Interactive has proven its ability to bring beloved arcade classics successfully back to life with its blockbuster launch of Frogger in 1997 for both the PC and Playstation game console. Frogger, based on the 1980s' mega video game originally developed by KONAMI Co., Ltd., was a huge hit over the holidays and continues to hop its way up the best-selling interactive game charts.

"We plan to implement the same aggressive strategy we used with Frogger, in bringing back the Atari classics," added Dusenberry. "We will develop games that appeal to the players who loved the titles as kids, while attracting a whole new generation by bringing the games up to today's highest standards. Of course, like all Hasbro Interactive titles, they will be backed by major marketing and merchandising programs."

With the acquisition of Atari's deep library of game properties, Hasbro Interactive seeks to strengthen its position in the action game category. Hasbro Interactive intends to develop various titles for all viable and available gaming platforms - PC CD-ROM, the Sony Playstation and Nintendo 64 game consoles, among others.

The largest insect invasion in history was recorded when Centipede hit the arcades in the 1980s. "Getting the bugs out" was the mission in this perennial favorite. The player launched rapid-fire attacks against persistent centipedes, sticky spiders, mushroom-dropping fleas and poisonous scorpions in order to re-claim the sacred mushroom patch.

No guts, no glory was the motto in the Atari classic, Missile Command. Players needed quick thinking and rapid fire to combat the battalions of bombers, satellites, missiles and smart bombs in this fast-action shooter. Blow them away first – otherwise you're vapor!

The two games that gave birth to the video game industry were pioneers Pong and Breakout. No fancy graphics were needed in these addictive thrillers - just a good dose of quick reaction and hand-eye coordination would do the job. Pong, the game of "virtual" handball, mesmerized gamers for hours as they battled their friends and foes match after match. Breaking through walls of bricks by ricocheting balls off of a video paddle was the simple, but very addictive premise behind Breakout. The desire to get a better score, kept the early gamers coming back for more.

Hasbro Interactive, Inc. is a leading all-family interactive games publisher, formed in 1995 to bring to life on the computer the deep library of toy and board games of parent company, Hasbro, Inc. (AMEX:HAS). Hasbro Interactive has expanded its charter to include original and licensed games for the PC, the Sony PlayStation(tm) and for multi-player gaming over the Internet. Headquartered in Beverly, Massachusetts, Hasbro Interactive has offices in the U.K., France, Germany, Japan and Canada. For more information on Hasbro Interactive titles, please visit www.hasbro-interactive.com.

Frogger is a registered trademark of Konami Co., Ltd. 1981 KONAMI. All rights reserved. PlayStation and the PlayStation logo are trademarks of Sony Computer Entertainment, Inc. Nintendo is a registered trademark of Nintendo of America, Inc. 1998 Hasbro Interactive, Inc. 1998 Hasbro, Inc.