INFOGRAMES ENTERTAINMENT

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• INFOGRAMES ENTERTAINMENT
• FISCAL 2005/2006 FIRST HALF RESULTS
• Paris, November 23, 2005

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• Half-year results
• Revenue from ordinary business of 125.7
  million
• Continued improvement in income
• Operating loss 16.7 million for the half vs.
  26.1 million on Sept. 30, 2004
• Group net income after minority interest 10.1
  million vs. 36.3 million
• on Sept. 30, 2004

Operating loss
Net loss
0
9/30/2005
-5
-10,1
9/30/2005
-16.7
-10
9/30/2004
-26.1
-15
9/30/2004
-36.3
M
-20
-25
-30
-35
-40
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Revenue breakdown
by region
2004-2005 first half
2005-2006 first half
Asia
Asia
8
12
United States
38
Europe
41
United States
Europe
51
50
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Revenue breakdown
by format
2
Others
1
PSX
1
to 9/30/2005
1
Nintendo DS
to 9/30/2004
3
GC
3
4
PSP
6
XBOX
17
9
GBA
10
33
Playstation 2
48
42
PC
20
0
10
20
30
40
50
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• FIRST-HALF HIGHLIGHTS
• Financial statements prepared in accordance with
  IFRS
• Positive impact of the Hasbro licenses resale
• Uniform method for reporting RD costs

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FINANCIAL RESULTS TO 9/30/2005
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Income statement (unaudited figures)
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• PRINCIPAL IMPACT OF CHANGEOVER TO IFRS
• Revenue
• deduction of coop. advertising
• deduction of cash discounts

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• PRINCIPAL IMPACT OF CHANGEOVER TO IFRS
• Operating income
• elimination of the concept of non recurring
  income (loss)

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• PRINCIPAL IMPACT OF CHANGEOVER TO IFRS
• Stock options
• Recognition of cost of options granted starting
  11/7/2002

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• PRINCIPAL IMPACT OF CHANGEOVER TO IFRS
• Valuation of goodwill
• No goodwill assigned to market shares
• Assignment of goodwill to cash-generating units
  of the Group
• Value of goodwill based on discounted cash
  flows of cash-generating units.

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• PRINCIPAL IMPACT OF CHANGEOVER TO IFRS
• Financial debt
• Notion of fair value and effective interest rate
• Application of IAS 32-39 effective 4/1/2005

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• UNIFORM REPORTING OF GROUP RD EXPENDITURES
• In-house RD
• Modification of technical feasibility notion
• RD expenses accounted on the balance sheet (not
  as an expense) effective 4/1/2005
• Amortization over 18 months
• Impact 15.4 million on 9/30/2005 balance
  sheet

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• UNIFORM REPORTING OF GROUP RD EXPENDITURES
• External RD
• Modification of technical feasibility notion
• Change in the treatment of prepayments
• Amortization over 18 months
• Impact -9.1 million on 4/1/2004 balance sheet
  Impact -15 million on 9/30/2005 balance sheet

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Income statement (unaudited figures)
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Income statement (unaudited figures)
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Income statement (unaudited figures)
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Balance sheet for 9/30/2005 (unaudited figures)
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Net debt as of 9/30/2005 (unaudited figures)
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REINFORCEMENT OF MANAGEMENT STRUCTURES
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• Reinforcement of group management structures
• Appointment of two Deputy Chief Operating
  Officer
• Evence-Charles Coppée, for Administration and
  Finance
• Jean-Michel Perbet for Marketing and Sales
• Appointment of Group Chief Financial Officer
• Thierry Dettloff

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• Enlargement of the IESA
• Board of Directors
• Appointment of three new Board director
• Evence-Charles Coppée
• Claude de Saint Vincent (independent director)
• Dominique dHinnin (independent director)
  Chairman of the Audit Committee

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• Enlargement of the IESA
• Board of Directors
• The new, expanded Infogrames Board now has the
  following membership
• Bruno Bonnell Chairman and CEO
• Evence-Charles Coppée Deputy Chief Operating
  Officer
• Jean-Michel Perbet Deputy Chief Operating
  Officer
• Christophe Sapet Deputy Chief Operating Officer
• Thomas Schmider Deputy Chief Operating Officer
• Claude de Saint-Vincent Independent director
• Dominique DHinnin Independent director -
  Chairman of the Audit Committee

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PROSPECTS
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FAHRENHEIT PC, PS2, Xbox Good performance by
this new franchise since its September release
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• Successful releases of major
• games in the second half
• DBZ TENKAICHI PS2
• ASTERIX OBELIX XXL2 PS2
• MATRIX PATH OF NEO

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DBZ TENKAICHI PS2 Topping the charts
worldwide since its release last October
Source GFK France, GFK Germany, Chart Track UK
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• ASTERIX OBELIX XXL 2 PS2
• A local product
• always among the
• top ten in sales
• since its mid-October
• release

Source GFK France, GFK Germany, Chart Track UK
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• MATRIX PATH OF NEO
• PS2, XBOX, PC
• November release
• A top-ten game in
• the leading markets
• France, PC Jeux 85 - Spain, Meristation.com 75
  - US, Gamer Magazine 9,5/10 - US, Cheat Code
  Central 4/5 - US, Game Pro 4/5 - UK, Eurogamer
  shaping up to be one of the most enticing movie
  tie-ins of all time, and something no Matrix fan
  will want to miss out on

Source GFK France, GFK Germany, Chart Track UK
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Third-quarter releases

• Dragon Ball Z Tenkaichi for Playstation 2
• The Matrix Path of Neo for Playstation 2, Xbox
  and PC
• Flashback 2 in the United States
• Dragonshard (Dungeons Dragons) for PC in
  Europe
• Titeuf for Nintendo DS
• Kao Challengers for PSP in Europe
• Duel Masters Shadow of the Code for GameBoy
  Advance
• RollerCoaster Tycoon Wild for PC
• Totally Spies for GameBoy Advance
• Ghost in the Shell for PSP in Europe
• GT Legends
• Driv3r for GameBoy Advance

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• Major fourth-quarter releases
• Tycoon City New York for PC
• Marc Eckos Getting Up Contents Under Pressure
  for
• Playstation 2, Xbox, PC, mobile,
• Driver Parallel Lines for Playstation 2 and Xbox
• Timeshift for Xbox 360 and PC
• Act of War Expansion Pack for PC
• Desperados 2 Coopers Revenge for PC
• DD online Stormreach for PC
• Dragon Ball Z Supersonic Warriors 2 for Nintendo
  DS
• Tamagotschi for Nintendo DS
• Crashday for PC
• Hasbro 4-Pack (Monopoly, Boggle, Yatzhee,
• Battleship) for Nintendo DS

Visuel non définitif
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2006

• GETTING UP
• PS2 XBOX - PC
• UK - Knowledge it's the big boys of the graff
  world bashing their creative heads together to
  bring you the definitive tagging experience.
• Nordic, Pelaaja The ambience is unique and
  moody and the actual feel of painting is captured
  extremely well.
• UK - PSM2 Getting up is going to be something
  original and special.
• Official PlayStation Magazine Do for graffiti
  what Tony Hawk did for skateboarding.

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2006
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• 2006
• TIMESHIFT
• Italy Xgamers It seems like Halo with a
  great plot
• Germany - Computerbild Spiele "With good and
  fresh new ideas, paired to good looking graphics
  and a huge load of weaponry the game could be
  extremely enjoyable.
• UK Xbox World Despite initial skepticism,
  were becoming more and more impressed with this
  master of time malarkey

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