Long-time Associates Announce Development of QUAKE IV And An All-New Game

ACTIVISION TO PUBLISH TWO NEW ID
SOFTWARE GAMES

Long-time Associates Announce
Development of QUAKE IV And An All-New Game

Santa Monica, CA – August 31, 2001 –
Building on its tradition of bringing triple-A titles to the PC, Activision,
Inc. (Nasdaq: ATVI) announced that it will publish two new id Software games –
QUAKE IV(tm) and a new as yet untitled game.

"id Software and Activision have
enjoyed a tremendous partnership on some of the best-selling and most celebrated
action games of all time," said Larry Goldberg, vice president, worldwide
studios, Activision.  "We look forward to continuing this relationship and
working closely with id on QUAKE IV and the new franchise.  The best is yet to
come."

QUAKE IV is in development by Raven
Software and marks a return to id Software’s trademark single-player gameplay
experience set in the QUAKE IITM universe, one of the best selling franchises in
PC gaming history.  QUAKE IV will use id Software’s advanced new DOOM game
engine.

"We are thrilled to be working with
Raven, Nerve and Activision on these exciting new titles," Todd Hollenshead,
CEO, id Software said.  "Raven and Nerve are two of the most talented teams in
the industry and we look forward to continuing our tradition of killer games
with them on Quake IV and our new franchise."

The new unnamed franchise is based
on an original design by id Software and is being developed by Nerve Software, a
new development company based in Mesquite, TX.  The company was co-founded by
Brandon James, a level designer at id Software on QUAKE II and QUAKE III Arena.

About id Software
id – Freud’s primal part of the human psyche and one of the hottest game shops
on Earth – has been rocking the gaming world from Mesquite, Texas since 1991. 
As a renowned leader in the industry, id Software forged such frenetic titles as
Wolfenstein 3D®, DOOM®, DOOM II(tm), QUAKE® and QUAKE II(tm).  With intense
graphics and mind-blowing action, id’s games have helped redefine the modern
video game, continually setting industry standards for technology and gameplay. 
And, in keeping with tradition, id Software has amplified the world of
adrenaline pumping 3-D gaming with the release of their latest action titles,
QUAKE III Arena(tm) and QUAKE III: Team Arena(tm).  id’s advanced QUAKE III
Arena engine is leading the next revolution in 3-D interactive games with both
single and multiplayer technology.  Check out more about id Software at
www.idsoftware.com.

About Activision

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 revenues of $620 million for the fiscal year ended March 31,
2001.

Activision maintains operations in
the U.S., Canada, the United Kingdom, France, Germany, Japan, Australia, 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.

The statements contained in this
release that are not historical facts are "forward-looking statements."  The
Company cautions readers of this press release that a number of important
factors could cause Activision’s actual future results to differ materially from
those expressed in any such forward-looking statements.  These important
factors, and other factors that could affect Activision, are described in
Activision’s Annual Report on Form 10-K for the fiscal year ended March 31,
2001, which was filed with the United States Securities and Exchange
Commission.  Readers of this press release are referred to such filings.

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2001 Id Software, Inc.  All rights
reserved.  Wolfenstein 3D, Return to Castle Wolfenstein, DOOM, QUAKE, QUAKE II,
QUAKE III Arena, QUAKE III: Team Arena, and the id Software name are either
registered trademarks or trademarks of Id Software, Inc. in the United States
and/or other countries.  Activision is a registered trademark of Activision,
Inc. and its affiliates.  All other trademarks and trade names are the property
of their respective owners.