LADYDRAGON.COM - E3 2001 -

ACTIVISION AND TRAVELLER’S TALES TO DEVELOP ORIGINAL CHARACTER-BASED PLATFORM GAME FOR THE PLAYSTATION®2 COMPUTER ENTERTAINMENT SYSTEM

Further expanding its relationship with leading developer Traveller’s Tales, Activision, Inc. (Nasdaq: ATVI) announced today that the U.K.-based studio has been in development on an original character-based platform game for the PlayStation®2 computer entertainment system. Fueled by an advanced proprietary 3D engine, the as-yet-unnamed game will take full advantage of the system’s graphic and technical capabilities to redefine platform action-adventure gaming.

The game takes players on a heroic quest of honor, courage and exploration. Beginning their adventure as a simple slave who grows to become a powerful hero, gamers must travel through a fantastic world as they uncover ancient powers and unravel a deep mystery that helps them free an enslaved race and save the galaxy. The game is slated to be released by Activision in late summer 2002.

Traveller’s Tales currently is developing Crash Bandicoot 5 for the PlayStation®2 computer entertainment system. The company has built a strong reputation for creating character-based games including Disney/Pixar’s Toy Story and Toy Story 2 and Disney/Pixar’s A Bug’s Life, as well as SonicR and Sonic 3D Blast among others. The developer recently completed two games for Activision --Disney/Pixar’s Buzz Lightyear of Star Command and Toy Story Racer.

"With more than a decade of experience in creating games based on some of the most well-known characters in entertainment, Traveller’s Tales is the perfect developer to partner with on the creation of this innovative game," states Larry Goldberg, executive vice president, Activision Worldwide Studios. "Our shared vision, coupled with Traveller’s Tales’ talent and advanced technology, will allow us to develop a game that marks an evolutionary step in character-based gaming."

"We are excited to partner with Activision on what will be our most ambitious title to date," commented Jon Burton, president of Traveller’s Tales. "We’ve been wanting to create this game for several years and feel the timing is just right. Activision is giving us a fantastic opportunity to devote the time we would like on this new game in order to deliver something truly spectacular for players. Our strong relationship with Activision makes them the perfect publishing partner to help us realize our vision."

Traveller's Tales is a UK-based developer committed to creating top-quality, innovative computer and video games for all viable platforms, including the next-generation consoles. Founded in 1990 by Jon Burton, Traveller’s Tales has worked with some of the most renowned company’s in the industry including Sony, Sega, Nintendo, Konami, Disney and Activision, among others. More information on Traveller’s Tales can be found at www.t-tales.com.

Headquartered in Santa Monica, California, Activision, Inc. is a leading worldwide developer, publisher and distributor of interactive entertainment and leisure products. Founded in 1979, Activision posted revenues of $620 million for the fiscal year ended March 31, 2001.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Japan, Australia, and the Netherlands. More information about Activision and its products can be found on the company's World Wide Web site, which is located at http://www.activision.com.