SUNNYVALE, CALIF (JUNE 28) PR NEWSWIRE - Atari Corp. (AMEX: ATC)
announced today that it has contracted with the IBM Corp.'s (NYSE:
IBM) Charlotte, N.C., facility to manufacture the Atari Jaguar,
Atari's new 64-bit multimedia entertainment system.
 
   IBM's multi-year contract is valued at $500 million. The Atari
Jaguar, to be made in the United States, is an interactive multimedia
entertainment system which features over 16 million colors in 24-bit
true color graphics and produces shaded 3-D polygons for manipulation
in a  "real world" in real time. A 32-bit expansion port will allow
for future connection into cable and telephone networks, a digital
signal processing port for modem usage and connection to digital audio
peripherals.  The Jaguar will also feature a double-speed compact disc
peripheral.
 
   "This system is clearly the wave of the future," said Sam Tramiel,
president of Atari.  "Because the Jaguar will feature such an array of
visual and audio special effects, we wanted to work with a premier
company that we are confident can manufacture the quality product we
have developed."
 
   The Charlotte-based IBM plant, which for 15 years has manufactured
and developed products only for other IBM businesses, just recently
began working with outside companies to meet their production needs.
The Atari Jaguar project represents one of IBM's first entries into
manufacturing for the mass consumer electronics market.
 
   "This is a wonderful opportunity to work with Atari and their new
system," said Herbert L. Watkins, director of Application Solutions
manufacturing at IBM Charlotte.  "Everyone expects IBM to manufacture
complex information technology products, and with this, we'll show
that we can competitively build a sophisticated consumer product."
 
   In addition to assembling the Jaguar, IBM will be responsible for
the component sourcing, quality testing, packaging and distribution.
The Jaguar, announced on June 3, is based on an Atari-designed
proprietary 64-bit RISC processor that features four times the
technology currently seen in the marketplace today.  The sound system
is based on Atari's proprietary, high-speed, Digital Signal Processor
dedicated to audio which can produce CD-quality sound.
 
   The Atari Jaguar will be available on a limited basis in the fall,
focusing on the New York market.  A national roll-out is expected next
year, and the Jaguar will retail for approximately $200.
 
   NOTE: Atari Corp. manufactures and markets personal computers and
video games for the home, office and educational marketplaces
throughout the world.  Atari headquarters are located at 1196 Borregas
Ave., Sunnyvale, CA  94089.
 
   The IBM Corp.'s Charlotte facility manufactures and develops for
IBM and other companies a wide variety of products, such as banking
systems, automotive diagnostic systems and electronic circuit boards.
The site includes 2.3 million square feet of work space on a
1,200-acre site. Its address is 1001 W.T. Harris Blvd., Charlotte, NC
28257. Telephone:  704-594-1000.
 
   -0-                             6/28/93 /CONTACT:    Nancy Chan of
Bohbot Communications, 415-705-6888, for Atari; or Bob Page of IBM,
704-594-1729/ (ATC IBM) CO:  Atari Corp.; IBM Corp. ST:  California,
North Carolina IN:  CPR  SU:  CON
 
 
 
 
 
06/28 1401  Atari shareholders reject reverse stock split
 
SUNNYVALE, CA (JUNE 28) PR NEWSWIRE - Atari Corp. (AMEX: ATC)
announced today the results of its annual meeting held on June 25,
1993, in Sunnyvale.
 
   In view of the current trading value of the common stock, the
board of directors recommended that the shareholders vote against the
one for 10 reverse stock split.  The shareholders voted against the
proposal. Therefore, no reverse stock split will occur.
 
   In addition, Sam Tramiel, president, demonstrated game software on
the company's new multi-media entertainment system called the Atari
Jaguar.
 
   NOTE: Atari Corp. manufactures and markets personal computers and
video games for the home, office and educational marketplaces
throughout the world.  Atari headquarters are located at 1196 Borregas
Ave., Sunnyvale, CA 94089.
 
   -0-                         6/28/93 /CONTACT:  August J. Liguori
of Atari, 408-745-2069/ (ATC) CO:  Atari Corp. ST:  California IN:
CPR SU:
 

 
   The latest info I've heard on the Jaguar is that it has the
following:  A custom 64-bit RISC processor, a custom 64-bit DSP (as
a subset of the main processor), 24-bit graphics, 2 megabytes of
RAM, and a 64-bit bus.