Activision, Inc. (Nasdaq: ATVI) announced today that the company has signed an exclusive, long-term agreement to publish games developed by Infinity Ward, a newly formed studio comprised of 22 of the individuals who developed the critically acclaimed PC title Medal of Honor Allied Assault, which was the #1 best-selling PC game in the United States for the January through March 2002 quarter, according to NPD Intelect. This partnership further solidifies Activision�s position as the leading publisher and distributor of first-person action games. Activision also announced that it has made a 30% equity investment in Infinity Ward with an option to acquire the remaining 70%.

�We always want to collaborate with top development talent and deliver outstanding first-person action games to the marketplace,� said Larry Goldberg, executive vice president of Activision Worldwide Studios. �Our deal with Infinity Ward furthers this strategy and our equity position reinforces our intention to invest in high-quality entertainment software studios.� The Infinity Ward announcement follows Activision�s recent acquisitions of Treyarch Inventions, LLC, Gray Matter Interactive Studios and Shaba Games, each of which has developed a title that has shipped more than one million units within the past nine months.