Shrek 2 in the works

Company Terminates Co-Development and Co-Publishing Agreement with TDK Mediactive

London, UK – December 19, 2003 - Activision, Inc. (Nasdaq: ATVI) announced today that the company will work directly with DreamWorks to develop and publish video games based on DreamWorks' upcoming animated theatrical "Shrek 2" feature film. Activision has terminated its previously announced co-publishing and co-development agreement with TDK Mediactive following Take-Two Interactive Software's acquisition of TDK. Additionally, TDK has assigned to Activision all of its rights related to future "Shrek" films. Under the terms of the agreement with DreamWorks, Activision will have the rights to develop and publish games for the console, hand-held and PC platforms for "Shrek 2."

"Activision and DreamWorks are working together to develop games based on 'Shrek 2' and future 'Shrek' sequels," stated Ron Doornink, CEO of Activision Publishing, Inc. "We are extremely pleased with the working relationship that we have developed over the past several months with DreamWorks and are very excited to further expand our commitment with them."

Activision also holds the exclusive interactive rights to publish games based on DreamWorks' three upcoming computer-animated feature films: "Shark Tale," "Madagascar," and "Over the Hedge."