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| Activision Announces Acquisition of Treyarch Invention, LLC. |
Leading Developer of Action and Action-Sports Games
Further Bolsters Activision's Market Position
SANTA MONICA, Calif., Oct. 3 /PRNewswire/ -- Activision, Inc.
(Nasdaq: ATVI) today announced that it has acquired Treyarch Invention, LLC.,
a leading console software developer with a focus on action and action-sports
video games.
The acquisition further enables Activision to implement its multi-platform
development strategy by bolstering the company's internal product development
capabilities for the next-generation console systems, and strengthens
Activision's leadership position in the action and action-sports genres. The
transaction underscores Activision's commitment to acquiring proven technical
and design talent that has a history of high-quality product creation, while
over time enhancing the company's financial operating model.
"Treyarch is an outstanding developer with an experienced management team
and a very talented group of programmers, designers and artists," said Ron
Doornink, President and COO of Activision, Inc. "The company's multi-platform
development capabilities and proprietary cross-platform technologies
complement Activision's rich brands -- making them a natural fit."
"We are tremendously pleased to be a part of Activision," said Don
Likeness, president of Treyarch. "We look forward to developing the best
action and action-sports games available and are confident that our multi-
platform development strengths will contribute to Activision's ongoing success
and leadership in the console marketplace."
Activision has had a long-standing relationship with Treyarch. The
developer is currently in production on several next-generation games for
Activision, including Tony Hawk's Pro Skater 2x, Spider-Man The Movie, Shaun
Palmer's Pro Snowboarder 2, Kelly Slater's Pro Surfer and Minority Report.
Additionally, Treyarch has developed other popular games, including Spider-Man
and Tony Hawk's Pro Skater 2 for the Dreamcast for Activision and Triple Play
Baseball, Nagano Olympic Hockey 98, Draconus: Cult of the Wyrm and Max Steel:
Covert Missions for other publishers.
Under the terms of the agreement, Treyarch becomes a wholly owned
subsidiary of Activision. Treyarch equity holders and employees will receive
545,974 shares of Activision common stock in connection with the acquisition.
Up to 224,077 additional shares of Activision common stock also may be issued
to Treyarch's equity holders and employees over the course of several years
depending on the satisfaction of certain performance requirements and other
criteria. The transaction was structured as a tax-free reorganization and
will be accounted for under the purchase accounting rules.
Activision does not expect this transaction to affect its previously
announced revenue and earnings per share guidance for the fiscal year ended
March 31, 2002 or for fiscal year 2003.
Headquartered in Santa Monica, CA, Treyarch was founded in 1996 and
currently maintains five development teams and a cross-platform technology
team. The company has numerous proprietary technologies that can be used to
create compelling interactive entertainment experiences in the action and
action-sports genres across multiple console platforms. As part of the
transaction, Treyarch's management team and key employees have signed long-
term employment contracts with Activision. The company has approximately
140 employees.
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 http://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.
SOURCE Activision, Inc.
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CONTACT:
Maryanne Lataif, VP, Corporate
Communications, Activision, Inc., +1-310-255-2704,
mlataif@activision.com
