ATARI GAMES WINS LAWSUIT FILED BY AUSTRALIAN
                 OVER GAME DISTRIBUTION RIGHTS

MILPITAS, CA  August 8, 1990 - Atari Games Corporation today announced
it has won a jury verdict in a two year old lawsuit brought by 
Australia's largest video game distributor/operator over the right
to exclusively distribute the entire line of Atari Games' arcade
products in Australia.

Avel Pty. Ltd., one of several Australian video game companies owned
by Malcolm Steinberg, filed a lawsuit in September 1988 claiming that
Atari Games had breached an oral and implied contract that would have
given Avel exclusive distribution rights for all Atari products in
Australia for an unlimited period of time.  Atari Games, which had for
many years granted distribution rights to Avel only on a game-by-game 
basis, conuntered that Avel's claims were simply self-serving fabrications.
Avel was seeking $3.6 million inn compensatory damages as well as
unspecified punitive damages.

A two week trial, heard by a jury in the U. S. Federal District Court
in San Francisco, ended on August 2, 1990 with an unanimous verdict
in favor of Atari Games on all claims brought by Avel.

"Atari Games has been a leader in the video game industry for many
years and has excellent long-term relationships with all of its
distributors throughout the world," stated a company spokesperson.

"Atari Games was shockedf and disa
"Atari Games was shockedf and disa
"Atari Games was shocked and disappointed when Malcolm Steinberg
instigated this unwarranted lawsuit to create rights he did not
have.  As an importer/operator, we believe a conflict of interest
existed that had a negative impact on the distribution of Atari
Games product in Australia," the spokesperson said.  Steinberg
admitted during the trial that his companies control sixty percent
of Australia's video game market.