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The Atari Group provides an update on recent business developments and its perspectives on the occasion of the Game Developers Conference 2019 in San Francisco

Paris & New York, March 18, 2019 at 9pm CET– On the occasion of the Game Developers Conference(« GDC »), one of the business’s largest annual occasions being held in San Francisco till March 22, 2019, the Atari Group provides an update on recent developments for its 4 business models and their perspectives.

Atari Video games: the video video games division, led by Jean-Marcel Nicolai, represented 84% of Group revenues in the fiscal yr 2017/2018 and constitutes the Group’s DNA. Atari Video games continues its robust progress because of RollerCoaster Tycoon Touch, the launch of new games and new licensing agreements.

Atari VCS: the hardware division, led by Michael Arzt, will begin contributing to Group revenue in the fiscal yr 2019/2020, as initially anticipated. The Atari VCS will now be powered by the new, more highly effective AMD Ryzen chip. The incorporation of the new processor will result in a supply at the finish of 2019 of the pre-orders made via the Indiegogo platform, with a business launch in 2020. Discussions with distributors are ongoing.

Atari On line casino: the regulated online real-money gaming division, led by Frédéric Chesnais, represented 10% of Group revenues for the fiscal yr 2017/2018, primarily by way of licensing activities. Atari On line casino has strengthened its partnership with Pariplay via the acquisition in December 2018 of a 2.5% stake in the latter in trade for the extension of the ongoing recreation licensing agreement. Pariplay is one of the Group’s companions in the improvement of the Atari Lotto venture.

Atari Companions: the fourth division is that of partnerships and know-how. Led by Frédéric Chesnais, it represented 6% of Group revenues for the fiscal yr 2017/2018. Recent developments embrace notably (i) in the blockchain area, the redefinition of the contract with Infinity Networks and the improvement of two new tasks, and (ii) a assessment of the participation in Kizzang.

At the holding firm degree of Atari SA,the Group is working on a secondary itemizing on the Nasdaq First North phase in Stockholm.

Frédéric Chesnais, Atari CEO, stated: « The Game Developers Conference all the time represents a great alternative to assessment our recent achievements and the outlook for each facet of our business, every of them advancing at their very own pace and following a selected cycle. Our aims for the next few years are clearly identified: proceed our investments in games, our DNA; establish Atari VCS as a platform of reference, supported by a robust on-line group; develop Atari Casino by means of selective opportunities; place ourselves for the long-term in the blockchain area, by creating decentralized platforms in the Leisure area alone or with partners. Lastly, to additional improve our visibility, we are learning a potential secondary itemizing of the Atari shares on the Nasdaq First North phase in Stockholm, which is already house to a quantity of well-known videogame corporations.”

Atari Video games:

RollerCoaster Tycoon Touchis celebrating its two-year anniversary this month and continues its robust efficiency with an common of 175,000 day by day lively customers and over 20 million downloads since the recreation’s release. It has been enriched with a number of recreation updates and was just lately launched in South Korea and Japan infully localized versions, managed instantly by the Atari Group. The Chinese language model is operated by an area associate and has just been featured in the App Retailer in China.

RollerCoaster Tycoon Adventuresreleased on December 13, 2018 on Nintendo SwitchTMand turned the first recreation in the RollerCoaster Tycoonfranchise to be obtainable on Nintendo’s new flagship console. The recreation is an off-the-cuff recreation, together with over 120 differing types of points of interest that gamers can build whereas enjoying on their TV or on the go. Press outlet Gaming Age gave the title an A evaluate grade. In consequence of its success, a PC version of the recreation has been developed and an unique distribution agreement shall be announced during GDC.

Citytopia,a new city-building simulation launched worldwide on iOS on January 31, 2019. The recreation launched with a worldwide function by Apple on the App Retailer, a four-star score and has reached over 380,000 downloads. The Android version will launch on Google Play after GDC.

Foodgod’s Food Truck Frenzy, is a match3 puzzle cellular recreation developed in partnership with Foodgod (Jonathan Cheban). The recreation is presently in delicate launch in Australia, New Zealand and Denmark. The rollout in additional nations on the App Retailer and Google Play will begin the week following GDC.

Days of Doomis one of the first post-apocalyptic survival RPGs on cellular platforms, iOS and Android. The recreation was launched on February 20, 2019 first in select territories.

Ninja Golfan action-oriented cellular recreation based mostly on the Atari basic options combative golfing and deadly ninjas. The recreation will launch in March 2019 first in choose territories.

In the licensing actions, the Group is constant to actively work on the conclusion of definitive agreements. Tastemakers LLC, has launched a collection of arcade machines underneath Atari license in a compact design, and in consequence of the success of these machines the licensing settlement with the firm has been extended till 2024. Concerning the licenses for televised recreation exhibits, where the Atari Group has developed 2 concepts Player Up and Codebreaker, (with a internet asset worth of €1.8M), the economic potential of these tasks will probably be assessed based mostly on definitive distribution and licensing agreements at present beneath negotiation.

Atari VCS:

Over the past a number of months, the engineering workforce behind the Atari VCS challenge has worked in close collaboration with the groups of chip manufacturer AMD on the system architecture. So as to deliver the absolute best consumer experience, the Atari VCS will now be powered by the extra highly effective AMD Ryzen chip. This new processor from AMD’s latest era will substitute the mannequin initially selected in 2017 and will significantly improve the performance of the VCS, notably offering enhanced native 4K video capabilities.

The incorporation of the new processor will result in a supply at the finish of 2019 for pre-orders made via the Indiegogo platform, with a business launch in 2020. The VCS will begin contributing to Group revenue in the fiscal yr 2019/2020, as initially expected.

Atari On line casino:

Pariplay, Ltd:The Group has strengthened its partnership with Pariplay by way of the acquisition in December 2018 of a 2.5% stake in the latter in change for the extension of the ongoing recreation licensing agreement.

Atari Lotto: So as to pursue the improvement of the exercise, Atari is working on Atari Lotto, a subsidiary devoted to direct and indirect exploitation of on line casino video games, scratch video games and small lottery video games on cellular and online platforms. The Group is working on a selected fundraising plan, which is described hereafter.

Atari Partners:

The Atari Group remains basically satisfied of the long-term potential of the blockchain know-how and has determined on the one hand to redefine its licensing settlement with INL in a mutual agreement, and on the other hand to pursue two specific tasks, a recreation financing platform and an Atari Lotto platform. INL’s strategy is far broader, which justifies the existence of two very focused tasks with totally different dynamics.

Infinity Networks Limited (INL).Atari is in the process of renegotiating the agreement with INL, making an allowance for the recent evolution of the blockchain and cryptocurrency area as well as INL’s particular requirements. Atari would improve its stake in INL from 15% to 30% with a restricted cash funding, whereas also redefining INL’s commitments, with a model licensing settlement over 10 years mixed with near-term improvement milestones and a quarterly cost schedule of royalties.

Atari Capitalis a recreation financing platform beneath improvement. The platform would utilize blockchain know-how to automate the distribution of recreation revenues to their buyers. Atari is learning with Entoro Capital a possible personal placement of most popular shares of Atari Capital, an entity presently in formation, which shall be entitled to dividend distributions based mostly on the performance of the video games financed by way of the platform. This fundraising would not result in any dilution at the degree of Atari, SA.

Atari Lottois an online real-money gaming platform, utilizing blockchain know-how to track sure funds. The principal goal is Europe, via the agreement with Pariplay, Ltd, as well as specific alternatives in Africa underneath native operating licenses. Atari Lotto notably benefits from the license obtained from Kizzang for a period of 10 years. Atari is learning with Entoro Capital a possible personal placement of most popular shares of Atari Lotto, an entity presently in formation, which can be entitled to dividend distributions based mostly on the internet revenues generated by Atari Lotto and which might be transformed into no more than 10% of the share capital of Atari Lotto. This fundraising would not result in any dilution at the degree of Atari, SA.

Atari has built a minority stake in Kizzang during the fiscal yr 2016/2017 by means of the change of Kizzang shares towards a 5-year Atari recreation license. In fiscal yr 2017/2018, Kizzang granted Atari a 10-year license overlaying patents and associated belongings, which shall be utilized by Atari Lotto. The e-book worth of the license is nil, though it presents promising perspectives. The royalties due for this license may be paid as much as two thirds of their amount by remitting shares of Kizzang valued at their acquisition value. The Securities and Change Commissionhaving lately filed a grievance towards Kizzang’s management for fraud for elevating money from sure buyers aside from Atari, among different issues, the Group will reevaluate this minority stake (€2.0 million as of September 30, 2018), making an allowance for that the worth of the Kizzang shares may also be thought-about as an advance on royalty funds for the license.

Atari SA – Challenge of a secondary itemizing of the shares on the Nasdaq First North phase in Stockholm

Atari, SA has utilized for a secondary listing of the Atari SA shares on the Nasdaq First North phase in Stockholm, an change that’s house to a quantity of well-known video game corporations. This listing will probably be achieved with none issuance of new shares, but by means of the itemizing of present shares, which shall be placed in a retail offering in Sweden for an quantity around €1 million.

These present shares will come from a share buyback on the French market, by way of the implementation of the share buyback program approved by the Common Assembly of Shareholders on September 28, 2018. An outline of this share buyback program limited to a most quantity of €1 million might be revealed by method of a separate press release previous to its implementation.

So as to assure the delivery of these shares in Sweden and to offer the company with full flexibility in its implementation of the share buyback program Ker Ventures, the holding firm of Frédéric Chesnais, has given its approval to the Board of Administrators for a short lived non-remunerated inventory mortgage that might cowl the maximum amount of the putting.

Disclaimer
There’s nonetheless inherent uncertainty in the completion of these tasks, their working finances and financing plan, and the failure of these assumptions to materialize might affect their worth.

About Atari
Atari, comprised of Atari SA and its subsidiaries, is a worldwide interactive leisure and multiplatform licensing group. The true innovator of the video game, founded in 1972, Atari owns and/or manages a portfolio of greater than 200 games and franchises, together with globally recognized brands reminiscent of Asteroids®, Centipede®, Missile Command® and Pong®. From this essential portfolio of mental properties, Atari delivers engaging online games for smartphones, tablets, and other related units. Atari additionally develops and distributes interactive entertainment for Microsoft, Sony and Nintendo recreation consoles. Atari also leverages its brand and franchises with licensing agreements by way of other media, by-product products and publishing. For extra info: www.atari.com and www.atari-investisseurs.fr Atari shares are listed in France on Euronext Paris (Compartment C, Code Isin FR0010478248, Ticker ATA) and are eligible for the Nasdaq International program in the United States (OTC – Ticker PONGF).