ATARI  ANNOUNCES SECOND 
-  Experience  Racing Reinvented with New Demo on Xbox Live Marketplace  -
NEW YORK, NY,  August 24 2006 – Atari, Inc.  (Nasdaq: ATAR), one of the world’s most recognized  brands and leading third-party video game publisher, today announced the upcoming launch  of a new Test Drive  Unlimited playable demo  for Xbox 360™ video game and  entertainment system from Microsoft, via Xbox Live®  Marketplace.  The new demo will be released on  August 21 2006 and will feature four new vehicles, new challenges, and a host of  gameplay enhancements to provide gamers with a taste of racing reinvented.   Test Drive Unlimited  is scheduled for release on September 5, 2006.  
The new demo  gives players a sample of  online and offline play on 40 miles of open roads on the  Hawaiian 
“The first Test  Drive Unlimited demo was an amazing success, placing  third for all downloads during E3,” said Rick Mehler, Director of Marketing,  Atari, Inc.  “As a result of the demo, Atari’s belief that gamers want and  deserve more from gaming – in terms of content, graphics, gameplay and online  options – was confirmed.  With this new Test  Drive Unlimited demo, we will deliver  M.O.O.R., Massively Open Online Racing and a gaming experience that is  reinventing the racing genre.” 
The first Test Drive  Unlimited playable demo, released during E3 2006, was downloaded  close to 200,000 times from Xbox Live Marketplace in one week, making it the  second most popular demo and the third most popular piece of content amongst all  downloads during the period.  In addition to being downloaded 350,000 times  since E3, Test Drive  Unlimited continues to receive accolades from industry media as  one of the top racing games this decade.  GameDaily declared “This is  the kind of racing game I live for,” while IGN.com  stated “there's no denying Test Drive  Unlimited is looking like one of recent memory's most  unique racers.”  TeamXbox  described Test Drive  Unlimited as a “revolutionary  online driver” and The New York Times reported Test Drive  Unlimited as “…a sprawling, sumptuous experience  that seems poised to become one of the more engaging games of the  year.”  
“We’re excited to give gamers a  taste of the eagerly anticipated Test Drive  Unlimited on Xbox 360, which brings a new level of innovation to  Xbox Live by allowing thousands of gamers to cruise the island of Oahu or  challenge one another,” said Albert Penello, Group Marketing Manager, Microsoft.  “Publishers like Atari recognize that with the majority of Xbox 360 owners  connected to Xbox Live, releasing a playable demo on Xbox Live Marketplace is  the ideal way to get the community excited about this game leading up to the  retail release.”  
Test  Drive Unlimited is the ultimate lifestyle and  automotive gaming experience packed with many of the world’s most luxurious  vehicles, incredible customization options, unique character personalization,  more than 1000 miles of diverse photo-realistic Hawaiian terrain, a challenging  single player game and a host of online options with M.O.O.R.™: Massively Open  Online Racing, which enables gamers to interact with thousands simultaneously.   The game offers 90 licensed vehicles – cars AND bikes - from exclusive  manufacturers that are fully customizable with unrivalled interior and exterior  details and functions. Car packs featuring six or more vehicles, complete with  genre-specific radio stations, will be available for download monthly,  beginning six weeks after launch on Xbox Live®  Marketplace for the Xbox 360™ video game and entertainment system from  Microsoft.  With these realistic features and more, Test  Drive Unlimited is racing reinvented.  
Test  Drive Unlimited is scheduled for release on  September 5, 2006.  For more information visit www.testdriveunlimited.com.  
About  Atari
New York-based Atari, Inc. (Nasdaq: ATAR) develops interactive games  for all platforms and is one of the largest third-party publishers of  interactive entertainment software in the 
With the exception of  the historical information contained in this release, the matters described  herein contain certain "forward-looking statements" that are made pursuant to  the 
The Company undertakes  no duty to update any forward-looking statements to conform the statement to  actual results or changes in the Company's  expectations.