In April 1988 Atari Games purchased 15.62 acres in the Oakmead-San Jose
Business Park to build a new factory and a new office building.  The 
site also provided us with room to build another building to handle
future expansion.

Recently, the Executive Committee made a decision to sell the land, 
because it was discovered that much more management time than originally
anticipated would have to be devoted to the project to make it a success.
Further, the matter was complicated by the ongoing litigation with
Nintendo.  For these reasons, we believe it is better to continue
leasing our present buildings, as we have very good leases, and sell
the 15.62 acres.

In addition, we purchased the land at a rock bottom price, so we stand
to make a nice profit when the land sale is final.  We certainly can
use the money to grow our business with Tengen's.

If you have any questions on the land sale, please see your departmental
Vice President.
                             Dennis Wood