ATARI : names Jim Wilson CEO

ATARI NAMES JIM WILSON CEO

Jeff Lapin Completes His Role with the Company

Paris, France - December 23, 2010 - Atari SA (the « Company ») announces that Jim Wilson has been appointed as Chief Executive Officer, succeeding Jeff Lapin, who will leave the Company. Wilson, who was until today Deputy CEO of the Company, assumes this expanded role as part of the next phase of Atari's repositioning, orchestrated by Lapin, Wilson and the Atari board.

Wilson, who joined the US subsidiary (Atari, Inc.) as Chief Executive Officer and President in 2008, led the turnaround of Atari's US business before focusing on the rationalization of activities in Europe, the re-launch of a worldwide publishing plan around Atari's proven franchises and the strategic shift toward digital, online and mobile businesses. He will continue to focus on the development and execution of strategic objectives and profitability goals, including the launch of numerous branded entertainment properties across multiple distribution channels.

"Jim has the board's full support as he continues to drive new goals of growth and success. At the end of Jeff's mandates, Atari is better positioned as we enter the next strategic phase of our plan," said Frank Dangeard, Atari Chairman of the Board.

Commenting on his appointment Wilson stated: "Jeff's contributions to our efforts during Atari's time of transition are well appreciated. It was a great pleasure to collaborate with him to achieve significant progress. I look forward to working with the board and our global executive team to further develop our online and traditional publishing strategy, while growing Atari's brand equity."

Mr. Lapin said, "I thoroughly enjoyed my time at Atari, and it was one of the most rewarding periods in my career. With Jim Wilson's leadership and management skills, Atari is well positioned for the future. I wish Atari and its employees great success." 

Mr. Wilson will continue to run Atari's global operations from Los Angeles, California.

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As Chief Executive Officer, Mr. Wilson will benefit from a compensation package similar to what he had as Deputy CEO. It has been set by the Board of Directors upon recommendation from the Nomination and Compensation Committee, i.e. an annual fixed gross compensation for $466,000 and an annual variable compensation, subject to the achievement of performance criteria, of up to 60% of his annual fixed gross compensation.

As Chief Executive Officer, Mr. Wilson could benefit from an exceptional compensation of up to 40% of his annual fixed gross compensation in case of certain achievements in specific conditions.

On May 25, 2009, the Board of Directors attributed to Mr. Wilson 300,000 stock options with an exercise price of Euros 5.17 euro per stock, subject to the achievement of performance criteria. The Board decided that the CEO will have to maintain throughout the duration of his mandate at least 15% of the vested stocks resulting from the exercise of these stock options.

The Board determines annually the performance criteria applicable to the variable elements of the compensation of the management team, and to the portion of the stock options which may be permanently allocated during a given year.

On May 20, 2010, the Board of Directors approved the principle of quantitative and qualitative criteria applicable for the fiscal year 2010/2011, and has given relative weights to these criteria for the purpose of calculating the overall performance of senior management, as follows: quantitative criteria weighted at 60%, and qualitative criteria weighted at 40%. Select quantitative criteria will be
evaluated on a sliding scale.

These criteria will be applicable to Mr. Wilson, with some adjustments due to the fact that he is appointed at the end of the third quarter of the fiscal year. The quantitative criteria relate to online revenues, current operating income and free cash flow. The qualitative criteria are based on: (i) substantially deliver the product publishing plan schedule, (ii) re-adjustment of the online products schedule, (iii) develop cash management process and reporting, (iv) continue structure optimization to fully support on-line game development, marketing and publishing, (v) develop and recommend future strategies for Cryptic and Eden studios: deliver key Q4 products, create mission statement, product strategy and organizations at the company's two studios, in order for them to contribute meaningfully to the 2012 FY in revenue and margin terms.

In the event Mr. Wilson is removed from office before the end of his appointment, the Board has also agreed a fixed severance package equal to one year of his annual fixed gross compensation plus applicable bonus and benefits as determined by the Board according to the performance criteria described above.

About Atari, SA

Atari group is a global creator, producer and publisher of interactive entertainment. Atari's brands and content are available across all key traditional and digital distribution touch points, including browser-based and social online platforms, PC, consoles from Microsoft, Nintendo and Sony, and advanced smart phones (i.e. iPhone, Android and RIM devices). Divisions of Atari, SA include Cryptic Studios, Eden Studios, Atari Interactive, Inc. and Atari, Inc.

Atari benefits from the strength of its worldwide brand and its extensive catalogue of contemporary classic game franchises (Asteroids®, Centipede®, Missile Command®, Lunar Lander®), original owned franchises (Test Drive®, Backyard Sports®, Deer Hunter®), MMO games from Cryptic Studios (Star Trek(TM) Online, Champions(TM)) and third party franchises (Ghostbusters®, Rollercoaster Tycoon®, Dungeons and Dragons®). Atari also leverages the power of its franchises to deliver movies and merchandise to consumers around the world.

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