Atari Games has entered into negotiations to purchase approximately 15.6
acres of land in San Jose at the corner of Tasman and Vista Montana near
North First Street.  Final negotiations have not been completed and the
possibility does exist that the deal may not go through.  If everything
goes well, we are expecting to finalize the purchase of the property
during the latter part of April or the first part of May.

The purpose in buying the property is to build a series of buildings, the
first one being for Manufacturing.  It is anticipated that if all goes
according to schedule, Manufacturing would move into the new facility by
March 31, 1989.  Thereafter, a second building will be started with the
expectation that company personnel in building 675 would move into that
building during the first half of 1990.

We will keep you advised on the status of the company's plans as they
develop.

This is to confirm that today we purchased 15.6 acres of land at the
corner of Tasman and Vista Montana near North First Street in San Jose.
We plan on commencing construction within the next several months, subject
to obtaining the necessary approvals from the City of San Jose.  We will
keep you advised as the date firms up on construction.  As soon as we
have the approved site development plan from the City of San Jose, we 
will put the plan on display.