Activision Acquires Head Games Publishing, A Leading Outdoor Sports/Lifestyle Software Company Acquisition Underscores Activision's Commitment

To Create Products Targeted Toward Broader Consumer Audiences



    SANTA MONICA, Calif., July 1 /PRNewswire/ --  Activision, Inc.
 (Nasdaq:   ATVI) today announced it has acquired Head Games Publishing, a
 leading developer and publisher of outdoor sports and lifestyle PC CD-ROM
 games.  The acquisition allows Activision to expand its product offerings into
 new genres at affordable price points targeted toward broader consumer
 audiences.  Additionally, it provides a platform for the company to develop a
 value-priced software business, which is one of the fastest growing segments
 in the PC interactive entertainment business.
     Under the terms of the merger agreement, Head Games has become a wholly
 owned subsidiary of Activision and Head Games shareholders were issued
 1,000,000 shares of Activision common stock.  The transaction will be
 accounted for as a pooling of interests.
     Based in St. Paul, Minnesota, Head Games is recognized for developing and
 publishing value-priced lifestyle games including Cabela's Big Game Hunter
 which according to PC Data was a top ten title for the months of March, April
 and May.  Other prominent Head Game titles that either are currently in
 development or recently have been released include Zebco Pro Fishing 3D, AMF
 ProBowl 3D, Ducks Unlimited, Inc., DuckHunter Pro, Remington Upland Game
 Hunter, Crosman Extreme PaintBrawl, Brunswick ProPool 3D and MasterCraft
 Extreme Watersports.
     "As lower priced hardware continues to bring new consumers to the PC,
 Activision is committed to strengthening its market share by offering easily
 accessible, quality interactive entertainment at affordable prices," states
 Robert Kotick, Chairman and CEO, Activision, Inc.  "Head Games is a prominent
 publisher of branded lifestyle products.  We believe that by developing
 products with strong, recognizable consumer brands, the company has created an
 entire line of games to dominate the growing mass-market category.  In
 addition to taking advantage of the explosive growth among broad-based
 consumer audiences, this acquisition also allows us to expand our presence in
 the value-priced software business and capitalize on the tremendous
 opportunities that currently exist in this category."
     "We are honored and excited to partner with Activision and believe this
 merger is a perfect fit for both companies," adds Dan Hammett, President of
 Head Games Publishing.  "In particular, this will allow Head Games to move to
 the top of the budget category, as well as enable Activision to emerge as a
 leader in this high growth arena."
     Headquartered in Santa Monica, CA, Activision, Inc. is one of the world's
 leading interactive entertainment software companies.  Founded in 1979,
 Activision posted revenues of approximately $260 million for fiscal 1998.  The
 company is a worldwide developer, publisher and distributor of interactive
 entertainment software for Microsoft Windows compatible personal computers as
 well as advanced console game systems such as the Sony PlayStation and
 Nintendo 64.
     Activision maintains international publishing subsidiaries in the United
 Kingdom, France, Germany, Japan and Australia and distribution subsidiaries in
 the United Kingdom and Germany.
     Activision maintains North American development and publishing operations
 in Santa Monica, CA and a development studio in Madison, Wisconsin.  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 the Company's Annual Report on Form
 10-K for the fiscal year ended March 31, 1998, which was filed with the United
 States Securities and Exchange Commission.  Readers of this press release are
 referred to such filings.
 
 

SOURCE Activision, Inc.
RELATED LINKS
http://www.activision.com

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