Activision Establishes Development Foothold in Quebec With Acquisition of Beenox Studios

Activision Establishes
Development Foothold in Quebec With Acquisition of Beenox Studios

Quebec Province Recognized as One
of the Fastest Growing Development Talent Pools in North America

SANTA MONICA, Calif., May 25, 2005:
Continuing to expand its roster of premier development talent, Activision, Inc.
(Nasdaq: ATVI) today announced that it has acquired game developer Beenox, Inc.
The acquisition further bolsters Activision’s internal development capabilities
by providing it with a foothold in the province of Quebec, one of the fastest
growing development talent pools in North America.

Activision has worked with Beenox
since 2003 on numerous games including such titles as Shrek 2, Tony Hawk’s
Underground 2, and its upcoming release, Fantastic Four. Beenox has established
itself as a leader in platform conversion technologies that allow for
simultaneous multiplatform game development. On March 17, 2005, the studio was
honored with the prestigious "Innovative Enterprise of the Year" award at the
22nd edition of the Fideides Awards, organized by the Quebec Business Council.

"We are excited about the talent and
experience that Beenox brings to Activision," said Kathy Vrabeck, president of
Activision Publishing. "Beenox’s extensive porting background will be a key
component of our console transition strategy by allowing us to focus our
resources on next-generation technologies while continuing to develop games for
current-generation systems. Quebec’s expanding innovative talent pool will
provide Activision with future growth opportunities."

"We are thrilled to partner with
Activision and believe that this acquisition is a perfect fit for both
companies," added Dee Brown, president and CEO of Beenox. "In particular, it
will allow Beenox to continue to develop high-quality titles based on
well-established brands."

Under the terms of the agreement,
Beenox has become a wholly owned subsidiary of Activision and Beenox’s
management team and key employees have signed long-term employment contracts
with Activision. The 32 person team will continue to be based in Quebec City,
Canada.

About Beenox

Founded in 2000, Beenox, Inc. is a
rapidly expanding game development studio based in Quebec City, Canada,
specializing in creating innovative technology and original games for personal
computer platforms and game consoles. In 2002, the Beenox Shift division was
created to give another life to hit titles by porting them to additional
platforms. Since its founding, the company has delivered over a dozen AAA title
ports, including simultaneous releases such as Tony Hawk’s Underground 2 for the
PC.

About Activision, Inc.

Headquartered in Santa Monica,
California, Activision, Inc. is a leading worldwide developer, publisher and
distributor of interactive entertainment and leisure products. Founded in 1979,
Activision posted net revenues of $1.4 billion for the fiscal year ended March
31, 2005.

Activision maintains operations in
the U.S., Canada, the United Kingdom, France, Germany, Italy, Japan, Australia,
Scandinavia, Spain and the Netherlands. More information about Activision and
its products can be found on the company’s World Wide Web site, which is located
at www.activision.com