I am pleased to announce the signing of a definitive agreement
by Atari Games to repurchase 100% of the Atari Games stock now
owned by Namco.  As a result of this transaction, Namco will
also receive Atari Operations Inc. after paying additional cash 
and other consideration to Atari Games.  Atari Operations Inc.
operates more than 40 video game arcades in the Western and
Southeastern United States.

Once completed, the transaction leaves Time Warner Inc. as
the only major outstanding shareholder of Atari Games.  The
sale of Atari Operations will not have any impact on personnel
at Atari Games or Tengen Inc.  This transaction is subject to
the approval of both companies' boards of directors.  Such
approval is expected shortly.

I'm telling you this now but please keep this information 
Company Confidential until a formal press release has been
issued by both companies.  This formal press release is
expected at the end of next week.