The attached news release announces a very important event to all of us.
Over the next few weeks it will attract the attention of this industry,
the media and consumer public.

The information and image we, as employeees, give to the outside world
will have a great impact on how we are perceived.  For this reason, 
Rogers & Associates of Los Angeles has been retained to answer ALL 
inquiries of our new venture.  In this way the information released can be
accurate, consistent and professional.

Specifically, refer any calls to Ron Rogers or David Ellis at (213) 552-6922.
Your strict cooperation is appreciated.

                TENGEN TO MARKET FIRST INDEPENDENTLY PRODUCED
                     NINTENDO-COMPATIBLE GAME CARTRIDGES;
                 EXPECTS SALES TO MORE THAN DOUBLE NEXT YEAR

SAN JOSE, CALIFORNIA, December 12, 1988 -- Tengen Inc. a wholly-owned
subsidiary of Atari Games Corporation, has introduced the first independently
produced and manufactured Nintendo-compatible video game cartridges.

The company will launch its new line of vide game cartridges with three
current hit titles, including Pac-Man, Gauntlet and RBI Baseball.  The games 
will be available at Tengen's national network of authorized retail outlets
immediately.

The new cartridges provide complete compatibility with the Nintendo Enter-
tainment  System (NES).  The Tengen cartridges are manufactured in the
United States and built to the highest quality standards. 

Nintendo is the world's largest manufacturer of video game software and
hardware.  Introduced in 1986, Nintendo has gained 100 percent of the
manufacturing market for Nintendo-compatible games, more than 80 percent
of the home video game machines market, and projects 1988 U. S. sales to
exceed $1.7 billion.

The new cartridges were developed in respnse to widespread consumer demand
for Tengen titles, according to Randy Broweleit, Senior Vice President of
Operations.  "In the past, Nintendo was the only manufacturer of NES game
cartridges.  The only way to market games for the NES format was to have
Nintendo produce them.  As a result, Nintendo had total control over the
supply.

"As the popularity of video games increased," Broweleit continued, "both
retailers and consumers became frustrated by the unavailability of some
of our most popular titles, like RBI Baseball and Gauntlet.  Having
control over the manufacturing of our own products became a necessity.

"This development puts us in control of our own destiny," Broweleit said.
"Until now, we were only able to satisfy a fraction of the demand for our
products.  Controlling the manufacturing of our own cartridges will help
bring product supply more in line with actual consumer demand."

Pac-Man, Gauntlet and RBI Baseball will be complemented by four all-new
titles which will be introduced at the Winter Consumer Electronics Show
in Las Vegas on  January 7th.  These include NES-compatible versions of
Atari Games arcade hits, Super Sprint, Rolling Thunder and Vindicators.
Tetris, a unique skill game developed in the Soviet Union, will also be
introduced at WCES.  The new products will be available early next year.\

Tengen will also enter the home computer game market this winter with the
introduction of four new gams:  RBI Baseball, Blasteroids,  Road Blasteers
and Rolling Thunder.  The games will be produced in all popular home
computer formats including IBM, Apple and Commodore.

Headed by President, Hide Nakajima, Atari Games was formed in 1985 as a
result of the break-up of the old Warner Communications-owned Atari Inc.
Atari Games is a manufacturer of quality arcade games, and has extensive
research and development resources.  Over the past 17 years it has
created arcade hits such as Pong, Asteroids, Centipede, Gauntlet and
Super Sprint.

Tengen Inc. was created by Atari Games in 1987 in response to the growing
demand for home entertainment software.  Adapted directly from the most
popular Atari Games arcade games,  Tengen home products have the same 
graphic excitement and high-quality sound as the arcade versions.

During its first year, Tengen's initial produce line will general $35
million in revenues.  With the new manufacturing capabilities, Tengen
projects 1989 sales to more than double.

Tengen Inc. is a wholly-owned subsidiary of Atari Games Corporation, and
is headquartered at 1901 McCarthy Boulevard, P. O. Box 360782, Milpitas,
California 95035.  Atari Games is a privately held company and is not
affiliated with Atari Corporation.