Activision acquires Shaba Games

Further enhancing its internal console development capabilities and bolstering its ability to create games for the next-generation consoles, Activision, Inc. today announced the acquisition of software developer Shaba Games LLC.

Under the terms of the agreement, Shaba has become a wholly owned subsidiary of Activision. Shaba’s equity holders received 258,621 shares common stock in connection with the acquisition. Up to 68,965 additional shares of Activision common stock also may be issued to Shaba’s equity holders over the course of several years, depending on the satisfaction of certain performance requirements and other criteria.

As part of the transaction, Shaba’s management team and key employees have signed long-term employment contracts with Activision. Activision does not expect this transaction to affect its previously announced revenue and earnings per share guidance for the fiscal year ended March 31, 2002 or for fiscal year 2003.

Activision’s Executive Vice President of Worldwide Studios, Larry Goldberg, said, “We are extremely pleased with the working relationship that has emerged over the past two years with Shaba. The company’s gifted and dedicated team will be a great addition to our internal studios. Shaba’s multi-platform development capabilities and expertise in action sports games makes it a tremendous asset and augments our commitment to acquire proven technical and design talent with a history of high-quality product creation.”

Members of Shaba’s team have worked on such critically acclaimed games as Pandemonium, Grind Session and Soul Reaver: Legacy of Kain. Additionally, Shaba has worked with Activision on such games as Mat Hoffman’s Pro BMX for the PlayStation game console and Tony Hawk’s Pro Skater 3 for the PlayStation game console. The company is currently in development on Shaun Murray’s Pro Wakeboarder for the PlayStation 2 computer entertainment system, Xbox video game console from Microsoft and Nintendo GameCube.

“We are very excited to join Activision,” states Chris Scholz, president of Shaba Games. “Activision brings world-class production processes and a strong marketing and distribution infrastructure that complements Shaba’s approach to game development.”