ACTIVISION ESTABLISHES DEVELOPMENT FOOTHOLD IN QUEBEC WITH ACQUISTION OF BEENOX STUDIOS

Quebec Province Recognized As One of the Fastest Growing Development Talent Pools in North America

Santa Monica, CA - May 25, 2005 - Continuing to expand its roster of premier

development talent, Activision, Inc. (Nasdaq: ATVI) today announced that it

has acquired game developer Beenox, Inc. The acquisition further bolsters

Activision's internal development capabilities by providing it with a

foothold in the province of Quebec, one of the fastest growing development

talent pools in North America.

Activision has worked with Beenox since 2003 on numerous games including

such titles as Shrek 2, Tony Hawk's Underground 2, and its upcoming release,

Fantastic Four. Beenox has established itself as a leader in platform

conversion technologies that allow for simultaneous multiplatform game

development. On March 17, 2005, the studio was honored with the prestigious

"Innovative Enterprise of the Year" award at the 22nd edition of the

Fidéides Awards, organized by the Quebec Business Council.

"We are excited about the talent and experience that Beenox brings to

Activision," said Kathy Vrabeck, president of Activision Publishing.

"Beenox's extensive porting background will be a key component of our

console transition strategy by allowing us to focus our resources on

next-generation technologies while continuing to develop games for

current-generation systems. Quebec's expanding innovative talent pool will

provide Activision with future growth opportunities."

"We are thrilled to partner with Activision and believe that this

acquisition is a perfect fit for both companies," added Dee Brown, president

and CEO of Beenox. "In particular, it will allow Beenox to continue to

develop high-quality titles based on well-established brands."

Under the terms of the agreement, Beenox has become a wholly owned

subsidiary of Activision and Beenox's management team and key employees have

signed long-term employment contracts with Activision. The 32 person team

will continue to be based in Quebec City, Canada.