11.2) What is the history of Atari?

Subject: 11.2) What is the history of Atari?

Here is a history of Atari, with heavy emphasis on the 400/800/XL/XE
computers.

1972
June 27: Atari, Incorporated was formed by Nolan K. Bushnell and Ted Dabney,
with an initial investment of US$500 (US$250 each.). First location for the
company: Santa Clara, California, USA.

November: Pong, the first Atari product, shipped.

1973
Nolan Bushnell bought out Ted Dabney's share of Atari, making Bushnell the
sole owner.

1975
Atari shipped Home Pong.

1976
Atari headquarters moved to Sunnyvale, CA.

October 1: Nolan Bushnell sold Atari to Warner Communications, Inc. for US$28
million, as a way to secure funding for development of the Video Computer
System (VCS). Bushnell stayed on at Atari as chairman.

1977
Atari shipped the VCS.

1978
March: Raymond E. Kassar joined Atari as a consultant, at the request of
Warner Communications. Before Atari, Kassar had been an executive vice
president at Burlington Industries, the textiles company.

Ray Kassar became president of Atari's consumer products division. In this
capacity, Kassar steered the ongoing development of home video game technology
into the development of a personal computer system.

October: Atari contracted with Shepardson Microsystems, Inc. (SMI, headed by
Bob Shepardson) to create both a version of BASIC and a File Management System
(FMS) for the upcoming Atari personal computers.

1979
January: Ray Kassar was president and chief executive of Atari. Company
founder Nolan Bushnell was no longer with Atari.

January: The Atari 400 and Atari 800 personal computers systems were
introduced at the Winter Consumer Electronics Show (CES) in Las Vegas. The
400 would come standard with 8K RAM and retail for US$500; the 800 would ship
with 8K RAM (user-expandable in 8K or 16K increments to 48K) and retail for
US$1,000. They were scheduled to ship in limited quantities in August 1979,
with full availability later in the fall.

January: Atari ran an advertisement for the 400/800 on pp. 54-55 of
_Merchandising_, vol. 4, no. 1, January 1979. See:
http://home.centurytel.net/hunmanik/atariads/gallery.htm

January 8: Atari filed with the USPTO for a patent for a "Data processing
system with programmable graphics generator" (the 400/800 computer system).
Inventors listed: Mayer, Steven T. (Auburn, CA); Miner, Jay G. (Sunnyvale,
CA); Neubauer, Douglas G. (Santa Clara, CA); Decuir, Joseph C. (Mountain
View, CA).

Summer: Atari received FCC approval for the 400/800 computers.

August:
"The first official small shipment of the 400/800 was on August 29th 1979.
These were hand-built pilot run units to Sears that needed to be in stock by
Sept. 1 so they could be placed in the big fall catalog. The units were
placed in the Sears warehouse and then immediatly returned to Atari after
the "in stock" requirement had been met." --Jerry Jessop

September 4: The New York Times reported on p. D7, "Atari Inc., the maker of
home video games, will introduce two new personal computer systems in the
fall. The inaugural ad campaign, created by Doyle Dane Bernbach, will break
in October in 12 national publications. TV commercials will also be aired in
Los Angeles in November and December."

October: "Atari's production lines were stalled for about a week in October
due to yield problems at one of its chip suppliers, Synertek. The low yields
at the semiconductor manufacturer resulted in significantly reduced delivery
of the MPU to Atari, resulting in about a 3-week delay in getting the
computers into the marketplace." Electronic News, December 10, 1979, p. 83.

November:
"The first "real" consumer units were shipped in Nov. of '79 and were 400s
to Sears followed very shortly by 800s." --Jerry Jessop

November/December: The initial Atari 400 personal computer package consisted
of the 400 computer (8K RAM), 400 Operator's Manual, power supply, TV switch
box, CXL4002 Atari BASIC (cartridge), Atari BASIC: A Self-Teaching Guide
(book, see http://www.atariarchives.org/basic/). Package retail: US$549.99.

November/December: The initial Atari 800 personal computer package consisted
of the 800 computer with 8K RAM module, 800 Operator's Manual, power supply,
TV switch box, 410 program recorder, CXL4001 Educational System Master
Cartridge, CXL4002 Atari BASIC (cartridge), CX-4101 An Invitation to
Programming 1: Fundamentals of Programming (cassette), Atari BASIC: A Self-
Teaching Guide (book, see http://www.atariarchives.org/basic/). Package
retail: US$999.99.

December: "Atari is funneling large quantities of its 400 and 800 personal
computers and software to Sears, Roebuck, while retail computer stores have
been faced with late hardware deliveries and received very little, if any,
software. Sears is offering the Atari 400, priced at $549.99, through its
catalog, and is spot-marketing the machine in its retail stores throughout
California and the Chicago area. In addition, the firm is selling the Atari
800, priced at $999.99, in its California stores, but not through the catalog,
a Sears spokesman said." Electronic News, December 10, 1979, p. 83.

1980
Winter: Atari shipped the 810 disk drive and 820 printer.

Summer: Atari modified the 800 computer package. The computer would now ship
with 16K RAM (up from 8K); the 410 program recorder and Educational System
Master Cartridge were removed from the package; the Atari BASIC Reference
Manual was added to the package.

Summer/Fall: Atari shipped the 825 printer, 830 modem, and 850 interface.

October: Roger H. Badertscher was named president of the newly established
Computer Division at Atari. He was previously vice president and general
manager of the microprocessor division of Signetics, an electronics
semiconductor manufacturer.

1981
Winter: Atari shipped the 822 printer.

Winter: The development rights to Atari BASIC, the Atari FMS (DOS) and the
Atari Assembler/Editor program were purchased from SMI by Bill Wilkinson for
his new company, Optimized Systems Software (OSS).

Spring: First issue of The Atari Connection, the glossy magazine published by
the Atari Computer Division in support of the 400/800.

May 5: At the National Computer Conference in Chicago, Atari announced that
the 400 would now ship with 16K RAM (up from 8K), and would now retail for
US$399 (previously, US$630).

May: Atari launched the Atari Program Exchange (APX), a user-written software
distribution unit within the Atari Computer Division. Guided by Fred Thorlin
since its inception in February 1981. See http://www.atariarchives.org/APX/

Summer?: Atari created the Atari Institute for Educational Action Research,
which began awarding major grants of Atari home computer products, cash
stipends, and/or consulting services to selected individuals and non-profit
institutions or ogranizations interested in developing new educational uses
for computers in schools, community programs, or in the home. Founded and
directed by Dr. Ted M. Kahn, Ph.D. More than US$250,000 would be awarded in
the program's first year.

Fall: Atari began shipping the 810 disk drive with DOS 2.0S (replacing
the original Atari DOS). Developed by SMI/OSS for Atari.

October: Atari 810 disk drives began shipping with ROM C, supporting a more
efficient sector layout, and the Data Separator Board, improving reliability.

October 20: The USPTO granted U.S. Patent 4,296,476 to Atari, for the 400/800
computer system. Read the full text of the patent here:
http://makeashorterlink.com/?M2561456

November: Atari 400/800's began shipping with the new GTIA chip in place of
CTIA, increasing the palette of simultaneously displayable colors to 256 and
adding 3 new graphics modes. 400/800's also began shipping with OS ROM
version B, improving peripheral I/O control routines.

December 30: Atari said that it would cut the retail price for the 800 home
computer (with 16K RAM) to US$899 from US$1,080.

1982
Winter: Atari's Computer Division was renamed the Home Computer Division.

Winter: Ted Richards' name first appeared as editor of The Atari Connection
magazine.

June 8: Atari announced the 5200 Home Entertainment System. Later dubbed the
SuperSystem, the cartridge-based 5200 would be marketed alongside the ultra-
popular Atari VCS (soon to be known as the 2600). While the 5200 required
unique game cartridges and controllers, the internal hardware and operating
system were nearly identical to that of the 400/800 computers. Suggested
retail price: US$299.95.

June: At the Summer CES in Chicago, Atari introduced the 835 modem, and
announced that the U.S. retail price for the 400 computer was reduced to
US$300.

June: Roger Badertscher resigned from his position as president of Atari's
Home Computer Division.

Summer: First year of Atari Computer Camps, held in 3 locations: The
University of San Diego (CA), The Asheville School (Asheville, NC), East
Stroudsburg State College (PA).

August 24: John C. Cavalier was named president of Atari's Home Computer
Division. His most recent job was vice president and general manager of
American Can Company's Dixie and Dixie/Marathon unit, makers of consumer paper
products.

October: Atari shipped the 5200 SuperSystem.

September: Steven T. Mayer (chief inventor of the 400/800) resigned as senior
vice president of engineering at Atari to form WCI Labs, Inc. as a wholly
owned subsidiary of Warner Communications. The unit would help develop the
next generation of Atari home computers, with Mayer as chairman and chief
executive.

December 13: Atari announced the 1200XL home computer at a press conference
in New York. "We believe that the Atari 1200XL will set the standard for a
new generation in home computing and, once again, positions Atari on the
leading edge of electronic technology and creative computing," Atari chairman
Ray Kassar said.

Atari sold 400,000 of its 400 and 800 computers in 1982, according to The
Yankee Group, a Boston-based computer consulting firm, accounting for 17
percent of all home computer sales.

1983
January: Atari introduced the 1200XL computer at the Winter CES in Las Vegas.
Peripherals introduced: the 1010 program recorder and the 1020/1025 printers.

Winter: The Atari 800 would now retail for US$499 with 48K RAM standard.
(These late-production pre-expanded 800 units were delivered with the
expansion bay screwed shut.)

Winter: All new Atari computer production was shifted overseas.

Winter: Atari shipped the 1200XL, and also the 835 modem.

Winter: Atari shipped the AtariWriter cartridge, developed by William
Robinson (via DataSoft) for Atari. He had previously written Text Wizard for
DataSoft.

Winter/Spring: "Computers: Expressway to Tomorrow" was an Atari-produced
assembly program for junior and senior high schools in the U.S., offering both
entertainment and computer education using films, slides, music, and a live
host to explore the role of computers in society. (MC's note: I remember that
this came to my school!)

June 2: Atari announced the consolidation of the Home Computer Division with
the Home Video Game Division. The new combined division would have three
segments: Products (development and marketing), Sales and Distribution, and
Manufacturing. The presidents of the three segments would report to Ray
Kassar, chairman and chief executive. (Atari's other two divisions, Coin-
Operated Games and AtariTel, were not affected.)

June: At the summer CES in Chicago, Atari introduced the 600XL and 800XL home
computers. The 400/800/1200XL would be discontinued. (The 1400XL and 1450XLD
computers were also introduced, but these never made it into production.)
Peripherals introduced: the 1027 printer, 1030 modem, and 1050 disk drive.
(Also shown: the 1060 CP/M Add-On Module and the 1090 XL Expansion System,
neither of which made it into production.)

Summer: Atari Computer Camps expanded to seven sites nationwide (U.S.):
Greenfield MA, Faribault MN, East Stroudsburg PA, Asheville NC, Glencoe MD,
Danville CA, San Diego CA

June 11-Sept 10: Atari co-sponsored the Punta Cana Club Med/Atari Computer
vacation getaway on the island of Hispaniola in the Dominican Republic.

Summer: Atari's 48K Memory Expansion Kit was released, for both the 8K and
16K versions of the 400 Home Computer.

July 7: Warner Communications announced that Atari chairman Ray Kassar had
resigned, to be replaced by James J. Morgan. Morgan was previously executive
vice president of Philip Morris USA, handling the company's US$4.3 billion
cigarette operations.

September 6: James Morgan arrived at Atari as chairman and chief executive
officer.

Sept83-June84: The "Catch On to Computers" program, a joint effort between
Atari and General Foods' Post Cereals, offered Atari computers, equipment, and
educational software to schools for collecting Post cereal proof-of-purchase
points over the 1983-1984 school year.

September: Ted Kahn stepped down as executive director of the Atari Institute
for Educational Action Research. More than US$1 million worth of computers,
software, and cash stipends had been awared to over 100 nonprofit
organizations since the program's founding in 1981.

Fall: Atari begin shipping the 1050 disk drive with DOS 3 (replacing DOS
2.0S).

Fall: The Atari 600XL/800XL both shipped, retail price US$199/$299, though
limited early production fell far short of initial demand.

October-December: "Catch on to Computers" computer literacy training programs
for children, adults, and teachers, sponsored by Atari and General Mills' Post
Cereals, ran in 10 cities across the U.S.

November: Atari opened the first Atari Adventure center in St. Louis, MO. The
concept combined a traditional video game arcade with a hands-on public
computer classroom/lab featuring Atari XL computers, along with a new
technology display area.

1984
January 1: Atari _increased_ U.S. dealer prices for the Atari 600XL and 800XL
by US$40 each, to US$180 and US$280, respectively.

January: (At the Winter CES in Las Vegas Atari again showed the highly-
anticipated 1450XLD, previously introduced at the Summer 1983 CES. The
1450XLD did not make it into production.)

January 23: In an organizational realignment, most operations at Atari were
consolidated into a single division called Atari Products Company, under Atari
chairman and CEO James Morgan.

February: Atari 5200 production ended.

April: Atari shut down the APX operation, directed by Fred Thorlin since 1982.
Software rights were returned to the original authors.

May 21: Atari announced the 7800 ProSystem. Atari also disclosed that the
5200 was no longer in production. More than 1 million 5200's had been sold to
date. (Washington Post, May 22, 1984, C3)

June: (At the Summer CES in Chicago Atari again encouraged anticipation for
upcoming higher-end XL computers, but the 1450XLD first shown at the Summer
1983 CES had been dropped, and no newer models were ready for demonstration.)

July 2: The assets of the Atari home computer and home video game businesses
were sold by Warner Communications to Tramel Technology Ltd., which had been
formed in May 1984 by Jack Tramiel, founder and former president of Commodore
International. The transaction included the "Atari" name and "Fuji" logo,
along with intangible property rights (patents, trademarks, and copyrights)
owned by Atari in conjunction with its computer and video game businesses, all
for exclusive use in all areas other than coin-operated video game use.

Warner received no cash, but received US$240 million in long-term notes and
warrants for a 32 percent interest in Tramiel's new venture. Tramiel, in
return, received warrants giving him the right to purchase one million shares
of Warner common stock at US$22 a share.

Tramel Technology was renamed Atari Corporation, with Jack Tramiel as
chairman.

( You may be interested in "A Brief Timeline of the Atari Divisions Initially
Retained by Warner Communications, July 1984 to Present" which is located
at http://home.centurytel.net/hunmanik/atariholdings.html )

Summer: The new Atari Corp. initially halted all manufacturing. Upon a review
of the existing product line, production of the 800XL and the 2600 was
resumed. The 600XL was discontinued, the 5200 firmly abandonded, and the yet-
to-be-shipped 7800 canceled. (Atari later re-introduced the 7800 in 1986.)
Atari Connection magazine was shut down.

July 13: Warner Communications announced the sale of 78% of its WCI Labs
subsidiary (internal co-developer of the Atari XL computers) to WCI Labs'
management. As a result of the transaction, which was made effective
retroactive to June 1, 1984, a new privately held company, the Take One
Company, was formed, with Steven T. Mayer as chairman and chief executive.
Warner Communications initially retained 22% ownership of Take One.

August: Atari reduced the retail price for the 800XL from US$250 to US$179.

November 13: Atari chairman Jack Tramiel declared that "business is war" and
announced the U.S. price for the 800XL would be reduced from US$179 to US$119.

December 6: It was reported that Atari would make an immediate 23 per cent
reduction to DM 499 (US$160) in the price of its 800XL home computer in West
Germany and similar cuts in the UK and Italy. Atari estimated the company's
share of the West German home computer market at 8%, compared with 2% in 1983.
In the UK, the 800XL price cut was from 170 to 130 pounds.

"The 800XL has sold almost 500,000 units through 1984" --Atari's Sigmund
Hartmann, Atari Explorer magazine, Summer 1985, p. 33.

1985
January: Atari introduced the 65XE and 130XE home computers at the Winter CES
in Las Vegas. The 800XL would be discontinued. (The 65XEM and 65XEP
computers were also shown, but these never made it into production.)
Peripherals introduced: the XMM801/XDM121 printers and the XM301 modem. (Also
introduced: the XTM201/XTC201 printers, XC1411/XM128 monitors, and XF521 disk
drive, but these never made it into production.) Also introduced: the Atari
ST personal computers, including the 520ST.

February: First issue of Atari Explorer magazine, the glossy published by
Atari (U.S.) Corp. in support of the XE and ST computers. Headed by Neil
Harris.

April: Atari shipped the 130XE, retail price US$149.95. (The 65XE was held
out of production due to ample supply of the 800XL.)

April: Atari began shipping the 1050 disk drive with DOS 2.5 (replacing
DOS 3).

Spring?: John Skruch became XE line product manager at Atari.

Fall: Atari shipped the disk-based AtariWriter Plus, developed by William
Robinson with Ron Rosen (Mail Merge module) and Stan Kistler (Proofreader
module) (via Microfantasy) for Atari. It was a complete rewrite of
AtariWriter, and the package included a version for 48K/64K Atari computers
as well as a version supporting the 128K RAM of the 130XE.

Fall: Atari shipped the XM301 modem.

1986
January: Atari announced the XC11 program recorder at the Winter CES in Las
Vegas. Also: a new "2600jr" version of the 2600 was introduced, the 7800
ProSystem (first announced in May 1984 but not shipped) was re-introduced, and
the 1040ST personal computer was introduced.

Winter: Atari shipped the XMM801 printer.

March: Atari introduced the XEP80 interface at the German Hanover Fair.

Summer: Atari shipped the 65XE, retail price US$99.95.

Sept/Oct: First issue of Atari Explorer magazine produced by the new
subsidiary, Atari Explorer Publications Corp. of Mendham, NJ, headed by David
H. Ahl, former editor of Creative Computing magazine.

November 7: Initial public offering of shares of Atari Corp. common stock on
the American Stock Exchange, under ticker symbol ATC. Atari chairman Jack
Tramiel and his associates retained control over the company.

November: Atari showed the SX212 modem and the XEP80 interface at the Fall
COMDEX show in Las Vegas.

1987
January: Atari showed the XE Game System for the first time at the Winter CES
in Las Vegas. Also introduced: the Mega ST personal computers and the PC/XT-
compatible Atari PC.

February: The Atari XE Game System was "formally introduced" by Atari at New
York's American/International Toy Fair.

June: Atari introduced the XF551 disk drive at the Summer CES in Chicago
(ending anticipation for a 3.5" disk drive for the XE).

Summer: Atari shipped the XDM121 printer.

September: Atari shipped the XEP80 interface and the SX212 modem (SX-Express!
disk software to be sold separately upon its completion).

Fall: Atari shipped the XE Game System in late September, and it reached most
dealer shelves by mid-October, retail price US$150.

October 4: Atari acquired all the outstanding capital stock of The Federated
Group, Inc., a retailer of consumer electronic and home entertainment products
with 91 outlets in Arizona, California, Kansas, New Mexico and Texas for $64.1
million in cash.

November: At the fall Comdex show Atari introduced the ABAQ, later named the
Atari Transputer Workstation (ATW), along with the PC/XT-compatible Atari PC2
and the PC/AT-compatible Atari PC3 computers.

December: Atari sold 100,000 XE Game Systems in the U.S. at Christmas and did
not meet demand (Antic magazine, May 1988, p. 39)

December 31: From the Atari Annual Report: "In Czechoslovakia, the German
Democratic Republic, and Poland the Atari 800XE and 65XE computers have gained
brand dominance and are among the most popular systems being sold in these
countries."

1988
January: Atari shipped the XF551 disk drive (with DOS 2.5).

November: At the fall Comdex show in Las Vegas Atari introduced the PC/AT-
compatible Atari PC4 and the 80386-based OS/2-compatible Atari PC5 computers.

December 31: From the Atari Annual Report: "Our XE line of 8-bit computer
systems is extremely popular throughout Eastern Europe, and most recently, has
begun to appear on retail shelves in the Soviet Union."

1989
January: Atari shipped DOS XE, and also began shipping the XF551 disk drive
with DOS XE (replacing DOS 2.5). Developed by Bill Wilkinson for Atari.

March: The Atari board of directors gave final approval to the decision to
discontinue the operation of Federated. All stores in the money-losing chain
would be closed or sold by the end of 1990.

Spring: At the Spring Comdex show Atari introduced the STacy laptop computer
(ST compatible) and the Portfolio palmtop computer (MS-DOS compatible).

May/June: Premier issue of Atarian magazine, "the official magazine of the
Atarian Video Game Club sponsored by Atari (U.S.) Corp." Published by Atari
Explorer Publications, David H. Ahl, Publisher/Editor, in support of the 2600,
7800, and XE Game System.

June: At the Summer CES Atari introduced the Portable Color Entertainment
System, re-named the Lynx by the time it shipped.

Summer: Atari shipped AtariWriter 80, developed by William Robinson and Ron
Rosen (via Micro Fantasy) for Atari. Package included Proofreader and
Mail Merge, and required the XEP80 interface.

October: Third and final issue of Atarian magazine.

September: At the Atari show in Duesseldorf Atari introduced the STE personal
computers along with the TT030 computer workstation.

November 9: Atari said it had agreed to sell 26 of its Federated Group
consumer electronics stores to Silo Inc., a Philadelphia-based electronics
retailer. Silo would take over 21 Federated stores in Los Angeles and Orange
counties and five in San Diego. After the transation Atari would still own 14
Federated stores in Texas, Kansas and Arizona.

December 31: From the Atari Annual Report: "sales of games products such as
the 2600 and 7800 game systems and the range of older XE 8 bit computers
decreased by 35% to $101.6 million, or 24% of total net sales for the year
ended December 31, 1989, from $155.5 million, or 34%, of total net sales in
1988." From the Atari 10-K: "The Company's traditional video game offerings
include the 2600 VCS, the 7800 ProSystem, and the XE Game System."

1990
March 15: Atari Explorer Publications was shut down, and Atari Explorer
magazine went on hiatus.

Winter/Spring?: Atari introduced the Atari ABC 286/30 PC-compatible computer.

May?: At the Atari shareholders meeting, Atari stated that last year, 250,000
XE computers were sold. In Poland, the XE sold 70,000 units, making it the
most popular computer in Poland. (Atari Interface, June/July 1990, p. 6)

November: At the fall Comdex show in Las Vegas Atari introduced the Mega STE
personal computers.

1991
Jan/Feb: Return of Atari Explorer magazine, now headed by John Jainschigg in-
house at Atari.

March: At the CeBIT show in Hannover, Atari introduced the STBook notebook
computer. (Atari also introduced the STPad, later known as the STylus, but
this never made it into production.)

May 14: At the Atari shareholders meeting, Atari stated that the XE was still
in production, being sold in South America, Eastern Europe and the Middle
East. (Atari Interface magazine, June 1991, p. 10)

October: At the fall Comdex show Atari introduced the Atari ABC 386SX and ABC
386DX desktop PC-compatible computers and the ABC N386SX laptop PC-compatible
computer.

November 23-24: Chicago Computerfest by Atari / Lake County Atari Computer
Enthusiasts (LCACE), Ramada Hotel O'Hare, Rosemont, Illinois. Atari (U.S.)
brought substantially all of their remaining inventory of 8-bit computer
products for clearance sale.

December 28: From the Atari 10-K SEC filing: "Atari's XE series computers are
targeted for the price conscious markets. The 65XE and 130XE have 64k and
128k of internal RAM, and generally retail for less than $100 and $150,
respectively. Both are supported by a variety of peripheral equipment and a
variety of software titles including entertainment software. This computer
line retains compatibility with the Company's previous generation 8-bit
computer systems, i.e., the 400 and 800XL computers."

1992
Atari announced that support for all 8-bit products was discontinued as of the
beginning of this year, according to Atari Classics magazine. (Dec. 1992, p.4)

June 2: At the Atari stockholders meeting, Atari stated that the XE line of
computers was still being made. Though not available in the U.S. market, XE
systems were being made for sale in Mexico, South America, Eastern Europe and
Germany. (Atari Interface magazine, Fall 1992, p. 19) These were apparently
800XE computers, manufactured in China.

August: Atari introduced the Falcon030 personal integrated media computer
system at the Dusseldorf AtariMesse.

December 31: For the first time, the XE was not mentioned in Atari's Annual
Report to Shareholders.

1993
Jan/Feb: Final issue of Atari Explorer magazine.

August 18: Atari introduced the Jaguar 64-bit interactive multimedia system at
a press conference held at company headquarters in Sunnyvale, Calif.

1994
January 1: From the Atari Annual Report: "The Company also has some inventory
of its older 16-bit computer products and 8-bit game products, namely ST and
TT series of computers, 2600 and 7800 video games systems and XE computer and
Portfolio products. As a result of these inventories being technologically
obsolete and noncompetitive, the Company has written off these inventories.
The Company is expecting minimal sales from these products in the future."

1996
July 31: Atari merged with pivately-held hard disk drive maker JTS (Jugi
Tandon Storage) Corp. The resulting company adopted the name of JTS Corp.
and the officers of JTS, along with Jack Tramiel from Atari, became the
officers of the merged company. Atari stockholders became stockholders in
JTS. For accounting purposes the merger was accounted for as a purchase of
JTS by Atari.

The prior business of Atari would now be conducted through the Atari Division
of JTS; however "the Atari Division was not expected to represent a
significant portion of JTS business," JTS said.

1996-1998
The Atari Division of JTS was responsible for selling off remaining Atari
product inventories.

1998
February 23: JTS sold substantially all of the assets of the its Atari
Division, consisting primarily of Atari intellectual property rights and
license agreements, to HIAC XI Corp., a wholly-owned subsidiary of Hasbro
Interactive (itself a unit of toy company Hasbro, Inc.), for US$5 million.
HIAC XI was then renamed Atari Interactive, Inc.

(JTS filed for Chapter 11 Bankruptcy Protection on December 11, 1998, and
then converted it to Chapter 7 (liquidation) on February 28, 1999.)

1998-2001
Hasbro Interactive produced games for home computers and gaming platforms,
sometimes utilizing the Atari brand and the Atari Interactive name. Atari
Interactive was sometimes termed "a Hasbro Affiliate."

2001
January 29: Infogrames Entertainment announced completion of its acquisition
of Hasbro Interactive from Hasbro, renaming the subsidiary Infogrames
Interactive, Inc. Atari Interactive, including all its assets, properties and
licenses, was also included in the transaction. Atari Interactive became a
wholly owned subsidiary of Infogrames Interactive.

2001-2003
Infogrames utilized the Atari brand on some of its "premiere" gaming titles.

2003
May 7: Infogrames adopted the Atari brand and registered trademark for all
operations. Accordingly, NASDAQ-traded Infogrames, Inc. became Atari, Inc.
(symbol: ATAR). Operations were split into Atari, Inc. and Atari Europe, with
Infogrames Entertainment remaining the name of the parent holding company.

Additionally, the Infogrames Interactive subsidiary and its Atari Interactive
subunit were folded together, with the resulting unit adopting the Atari
Interactive name.

TODAY: The Atari copyrights/trademarks/patents associated with the 8-bit Atari
computer line, along with all other Atari intellectual properties secured by
Atari Corp. from Warner Communications in 1984, and along with all Atari Corp.
and Atari Interactive properties created since 1984, are owned by the Atari
Interactive unit of Atari, Inc., the U.S. subsidiary of Infogrames
Entertainment.

Infogrames Entertainment (IESA), the parent company of the Atari Group, is
listed on the Paris Euronext stock exchange (ISIN code: FR-0000052573) and has
two principal subsidiaries: Atari Europe, a privately-held company, and
Atari, Inc., a United States corporation listed on NASDAQ (ATAR).

The Atari Group is a major international producer, publisher and distributor
of interactive entertainment software for all market segments and in all
existing game formats (Microsoft, Nintendo and Sony) and on CD-ROM for PC. Its
games are sold in more than 60 countries.

The Atari Group's extensive catalogue of popular games is based on original
franchises (Driver, Alone in the Dark, V-Rally, Unreal Tournament, Test Drive,
Roller Coaster Tycoon, etc.) and international licenses (Matrix, Dragon Ball
Z, Dungeons & Dragons, ...).

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