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Activision Signs Agreement With DreamWorks


        Company Terminates Co-Development and Co-Publishing Agreement
                             With TDK Mediactive

SANTA MONICA, Calif., Dec. 19 /PRNewswire-FirstCall/ -- Activision, Inc. (Nasdaq: ATVI) announced today that the company will work directly with DreamWorks to develop and publish video games based on DreamWorks' upcoming animated theatrical "Shrek 2" feature film. Activision has terminated its previously announced co-publishing and co-development agreement with TDK Mediactive following Take-Two Interactive Software's acquisition of TDK. Additionally, TDK has assigned to Activision all of its rights related to future "Shrek" films. Under the terms of the agreement with DreamWorks, Activision will have the rights to develop and publish games for the console, hand-held and PC platforms for "Shrek 2."

"Activision and DreamWorks are working together to develop games based on 'Shrek 2' and future 'Shrek' sequels," stated Ron Doornink, CEO of Activision Publishing, Inc. "We are extremely pleased with the working relationship that we have developed over the past several months with DreamWorks and are very excited to further expand our commitment with them."

Activision also holds the exclusive interactive rights to publish games based on DreamWorks' three upcoming computer-animated feature films: "Shark Tale," "Madagascar," and "Over the Hedge."

About Activision

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 net revenues of $864 million for the fiscal year ended March 31, 2003.

Activision maintains operations in the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia, Scandinavia 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 www.activision.com .

The statements contained in this release that are not historical facts are "forward-looking statements." The Company cautions readers of this press release that a number of important factors could cause Activision's actual future results to differ materially from those expressed in any such forward- looking statements. These important factors, and other factors that could affect Activision, are described in Activision's Annual Report on Form 10-K for the fiscal year ended March 31, 2003, which was filed with the United States Securities and Exchange Commission. Readers of this press release are referred to such filings.

SOURCE  Activision, Inc.

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