Regulatory News:
Atari, Inc. (Paris:IFG) (NASDAQ:ATAR), the Infogrames
Entertainment subsidiary in the United States, announced today that a
significant decline in its market capitalization during the quarter
ended March 31, 2007 had led management to order impairment tests to
be performed on goodwill in the company's books. Although the tests
are currently in progress and no reliable estimate of the value of
goodwill can be made at this time, the management of Atari Inc.
indicated on April 26, 2007 that significant impairments would be
recognized in the financial statements for the fourth-quarter of 2007.
The write-downs will have no cash impact.
As prescribed by IFRS, Infogrames Entertainment is currently
conducting annual impairment tests of goodwill in connection with the
preparation of its consolidated financial statements for the year
ended March 31, 2007.
While the assumptions made for the purpose of this procedure take
into consideration the financial position of the US subsidiary, the
consolidated financial statements will not automatically reflect
impairments recognized by Atari Inc., as goodwill being tested and its
allocation to cash-generating units (CGUs) are not the same at the
subsidiary and consolidated levels.
However, in the event that the impairment tests now in progress at
the Group level should show that the recoverable value of goodwill is
less than its net book value, a corresponding impairment would be
recognized.
About Infogrames Entertainment and Atari
Infogrames Entertainment (IESA), the parent company of the Atari
Group, is listed on the Paris Euronext stock exchange (ISIN code:
FR-0000052573) and has two principal subsidiaries: Atari Europe, a
privately-held company, and Atari, Inc., a United States corporation
listed on NASDAQ (ATAR).
The Atari Group is a major international producer, publisher and
distributor of interactive entertainment software for all market
segments and in all existing game formats (Microsoft, Nintendo and
Sony) and on CD-ROM for PC. Its games are sold in more than 60
countries.
The Atari Group's extensive catalogue of popular games is based on
original franchises (Alone in the Dark, V-Rally, Test Drive, Roller
Coaster Tycoon, etc.) and international licenses (Dragon Ball Z,
Dungeons & Dragons, etc.).
