Activision Completes Call for $15 Million of Its 6-3/4% Convertible Subordinated Notes Due 2005

Company Calls for Redemption of Additional $15 Million In

Aggregate Principal Amount of Its 6-3/4 % Notes Due 2005



Apr 17, 2001, 01:00 ET from Activision, Inc.

    SANTA MONICA, Calif., April 17 /PRNewswire/ --
 Activision, Inc. (Nasdaq: ATVI) announced today that it completed the
 redemption of $15 million aggregate principal amount of its 6-3/4% Convertible
 Subordinated Notes due 2005.  The Notes were called for redemption on April
 17, 2001.  All of the holders of the Convertible Subordinated Notes selected
 for redemption elected to convert such Notes to common stock prior to the
 redemption date.  The Company will issue approximately 795,000 shares of
 common stock as a result of the conversions.
     Additionally, Activision has called for a May 9, 2001 redemption of an
 additional $15 million in aggregate principal amount of its 6-3/4% Convertible
 Subordinated Notes due 2005.  Depending on market and business conditions, the
 company may take other actions in the near future with respect to the
 outstanding Notes not called for redemption, including negotiated or
 open-market purchases and/or additional redemptions.
     "During fiscal 2001, we optimized our capital usage.  Our strong earnings
 combined with our focused balance sheet management have enabled us to
 substantially improve our liquidity position," states Robert Kotick, Chairman
 and CEO of Activision, Inc.
     "The April 17th redemption underscores our commitment to improve our
 capital structure and lower our debt to equity ratio.  With this second
 redemption we are taking further steps to continue reducing interest expense
 and increasing our financial flexibility," adds Kotick.
 
     May 9, 2001 Redemption Details
     Holders of the Notes that are called for redemption on May 9, 2001 may
 convert the principal amount of Notes called for redemption into shares of
 Activision common stock at a conversion price of $18.875 for each share of
 common stock at any time up to the close of business on May 8, 2001.
     The Notes called for redemption, to the extent not previously converted,
 will be redeemed on May 9, 2001 at 103.375% of their principal amount plus
 accrued interest up to but not including May 9, 2001.  Payment of the
 redemption price will be made on May 9, 2001 with respect to Notes surrendered
 for redemption on or before that date.  No interest will accrue on or after
 May 9, 2001 with respect to the Notes called for redemption.
     Only the holder of record of the Notes may surrender such Notes for
 redemption or conversion.  Beneficial owners of Notes should contact the
 broker, dealer, bank, trust company or other nominee through which they
 beneficially own the Notes to provide instructions with respect to the
 redemption or conversion of their Notes, or to obtain additional information.
 
     Headquartered in Santa Monica, California, Activision, Inc. is a leading
 worldwide developer, publisher and distributor of interactive entertainment
 and leisure products.  Founded in 1979, Activision posted revenues of
 $572 million for the fiscal year ended March 31, 2000.
     Activision maintains operations in the U.S., Canada, the United Kingdom,
 France, Germany, Japan, Australia, and the Netherlands.  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 Activision's Annual Report on Form
 10-K for the fiscal year ended March 31, 2000, which was filed with the United
 States Securities and Exchange Commission.  Readers of this press release are
 referred to such filings.
 
 

SOURCE Activision, Inc.
    SANTA MONICA, Calif., April 17 /PRNewswire/ --
 Activision, Inc. (Nasdaq: ATVI) announced today that it completed the
 redemption of $15 million aggregate principal amount of its 6-3/4% Convertible
 Subordinated Notes due 2005.  The Notes were called for redemption on April
 17, 2001.  All of the holders of the Convertible Subordinated Notes selected
 for redemption elected to convert such Notes to common stock prior to the
 redemption date.  The Company will issue approximately 795,000 shares of
 common stock as a result of the conversions.
     Additionally, Activision has called for a May 9, 2001 redemption of an
 additional $15 million in aggregate principal amount of its 6-3/4% Convertible
 Subordinated Notes due 2005.  Depending on market and business conditions, the
 company may take other actions in the near future with respect to the
 outstanding Notes not called for redemption, including negotiated or
 open-market purchases and/or additional redemptions.
     "During fiscal 2001, we optimized our capital usage.  Our strong earnings
 combined with our focused balance sheet management have enabled us to
 substantially improve our liquidity position," states Robert Kotick, Chairman
 and CEO of Activision, Inc.
     "The April 17th redemption underscores our commitment to improve our
 capital structure and lower our debt to equity ratio.  With this second
 redemption we are taking further steps to continue reducing interest expense
 and increasing our financial flexibility," adds Kotick.
 
     May 9, 2001 Redemption Details
     Holders of the Notes that are called for redemption on May 9, 2001 may
 convert the principal amount of Notes called for redemption into shares of
 Activision common stock at a conversion price of $18.875 for each share of
 common stock at any time up to the close of business on May 8, 2001.
     The Notes called for redemption, to the extent not previously converted,
 will be redeemed on May 9, 2001 at 103.375% of their principal amount plus
 accrued interest up to but not including May 9, 2001.  Payment of the
 redemption price will be made on May 9, 2001 with respect to Notes surrendered
 for redemption on or before that date.  No interest will accrue on or after
 May 9, 2001 with respect to the Notes called for redemption.
     Only the holder of record of the Notes may surrender such Notes for
 redemption or conversion.  Beneficial owners of Notes should contact the
 broker, dealer, bank, trust company or other nominee through which they
 beneficially own the Notes to provide instructions with respect to the
 redemption or conversion of their Notes, or to obtain additional information.
 
     Headquartered in Santa Monica, California, Activision, Inc. is a leading
 worldwide developer, publisher and distributor of interactive entertainment
 and leisure products.  Founded in 1979, Activision posted revenues of
 $572 million for the fiscal year ended March 31, 2000.
     Activision maintains operations in the U.S., Canada, the United Kingdom,
 France, Germany, Japan, Australia, and the Netherlands.  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 Activision's Annual Report on Form
 10-K for the fiscal year ended March 31, 2000, 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