##### ###### ##### ## ## ## ## ## AEO News Bulletin #6 ####### #### ## ## Wednesday, Sept. 28, 1994 ## ## ## ## ## """"""""""""""""""""""""" ## ## ###### ##### ## ## ###### ## ## ##### ## ### ## ## ## ## ## ## ###### #### ## # ## #### ## ## ### ## ## # ## ## ## ## ###### ##### ##### ## =-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-=-= According to a press release issued today, Sega Enterprises, Ltd. is plunging nearly $90 million into Atari Corporation. $50 million to come from direct payments for worldwide access to Atari Corporation videogame patents for several years. The remaining $40 million will come from a purchase of 4.7 million shares of Atari common stock. To quell all rumors, this is -not- a "buyout" of Atari Corporation. The size of stock purchased is 7.4 percent of total Atari Corporation stock. In the same joint press release, the two videogame giants announced that they may come to agreement on cross-platform title licensing in the future. The press release follows: Contact: Sega Enterprises. Ltd. Atari Corporation Richard Brudvik-Lindner Sam Tramiel (415) 802-3657 (408) 745-8824 August Liguori (408) 745-2069 Manning, Selvage & Lee (for Sega) Brenda Lynch (818) 509-1840 SEGA AND ATARI ANNOUNCE LONG-TERM LICENSING AGREEMENTS, EQUITY INVESTMENT, AND RESOLUTlON OF DISPUTES SUNNYVALE, Calif. (September 28, 1994) -- Sega Enterprises, Ltd., and Atari Corporation (AMEX:ATC) announced today an affiliation that includes several agreements designed to serve as the basis of future working arrangements between the two video game manufacturers. Under the terms of the agreements: - Sega will receive worldwide, non-exclusive rights with certain exceptions to Atari's extensive library of patents, a number of which extend beyond the turn of the century. The agreement covers Sega, its subsidiaries, its licensees, and its customers for more than 70 U.S. patents and applications, for a fully prepaid royalty to Atari covering the remaining 7 years of certain patents, amortized at approximately $7 million per year. Atari will therefore receive a total of $50 million, less Atari's contingent attorney fees and costs. - Sega will purchase approximately 4.7 million shares of Atari common stock for a total price of $40 million. - Both companies will enter into software license agreements for a specified number of games that would be made available on each company's present and future platforms. - Atari will dismiss its legal proceedings against Sega, and each company will release all claims against the other. The agreements are subject to approval by the United States Department of Justice and the Federal Trade Commission under Hart-Scott-Rodino and to certain other conditions. "We are extremely pleased with this relationship that has potential long-term benefits for both companies," said David Rosen, Co-Chairman of Sega of America. "We at Atari are very pleased with this new affiliation. The increased cash position will be used among other things to enhance our marketing position this fall," said Sam Tramiel, President, CEO of Atari Corp. Atari designs and markets interactive multimedia entertainment systems and is located in Sunnyvale, California. Sega Enterprises, Ltd., Tokyo, is a nearly $4 billion company, recognized as a leader in interactive digital entertainment media with operations on five continents. --==--==--==--==-- AEO News! is a service of Atari Explorer Online Magazine, a bi-weekly publication covering the entire Atari community. All material herein is believed accurate at the time of publishing. Material published in this issue may be reprinted (unless specified in the article) by registered Atari user groups and non-profit publications, citing Atari Explorer Online as the originator. Other reprints granted upon approval of request. Send requests to . --==--==--==--==-- Atari, ST, Mega ST, STE, Mega STE, TT030, Atari Falcon030, TOS, MultiTOS, NewDesk, BLiTTER, Atari Lynx, ComLynx, Atari Jaguar, Atari Portfolio, and the Atari Fuji Symbol are all trademarks or registered trademarks of Atari Corporation. All other trademarks mentioned in this edition of AEO News! belong to their respective holders. --==--==--==--==-- AEO News! and Atari Explorer Online Magazine "Your Source for Atari News" Copyright (c) 1994, Subspace Publishers * * * * * * * * * * * * * * * :::::::::::::::::::::::::::::: A E O ::::::::::::::::::::::::::::::: :: AEO News! #6 ATARI EXPLORER ONLINE September 28, 1994 :: ::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::