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Take-Two Interactive Software, Inc. Reports Fourth Quarter and Fiscal 2007 Financial Results

Fourth Quarter Bottom Line Exceeds Guidance; Net Loss Declines on Revenue Growth and Reduced Expenses Company Reiterates Fiscal Year 2008 Guidance and Provides First Quarter Guidance

Take-Two Interactive Software, Inc. today announced financial results for its fourth quarter and fiscal year ended October 31, 2007.

Net revenue for the fourth quarter was $292.6 million, compared to $266.6 million for the same period of fiscal 2006. Fourth quarter sales were led by BioShock, NBA 2K8 and Carnival Games, all of which were new titles released this quarter, as well as Grand Theft Auto catalog titles. Distribution revenue rose year over year, as next generation hardware sales were fueled by the strength of new front-line software titles, along with robust demand for Wii products.

Business Highlights

Among the significant recent business developments, Take-Two noted the following:

-- 2K Games' wholly owned and internally developed BioShock for Xbox 360 and Games for Windows(R) has shipped over 2 million units worldwide since its launch in late August. This critically acclaimed title has received numerous accolades, including Game of the Year from the British Academy of Film and Television Arts (BAFTA), and from the Associated Press. Additionally, the title won Game of the Year, Best Xbox 360 Game and Best Original Score at the 2007 Spike TV Video Game Awards on December 9th.

-- Carnival Games, a wholly owned and internally developed title for Nintendo's Wii(TM), has shipped over 500,000 units since its debut in late August. 2K Play will be bringing this popular title to Nintendo DS(TM) in fiscal 2008.

-- The Company closed on an expanded $140 million senior secured revolving credit facility.

-- 2K announced the formation of 2K Marin, a new development studio in Novato, California, which will develop original intellectual property, as well as co-develop products with other 2K studios around the world.

-- Gary Dale was named Executive Vice President of Take-Two, responsible for business development and optimizing sales and distribution activities. He had previously served as Chief Operating Officer of Rockstar Games.

Strauss Zelnick, Chairman of Take-Two, stated, "Fiscal 2007 was a year of progress for Take-Two, capped by better-than-expected bottom line financial performance in the fourth quarter. The Company has benefited from initiatives to streamline operations and improve our cost structure, while continuing to expand our portfolio of powerful video game franchises. As a result of this progress, Take-Two today is sharply focused on its core publishing business and is operating more productively and efficiently, while continuing to foster the extraordinary creative talent of our development teams. We are fully committed to building on this solid foundation to produce great entertainment and to enhance shareholder value."

Product Pipeline 
The following titles shipped during the first quarter of 2008: 
Title                                    Platform
----------------------------------------------------------------------

College Hoops 2K8                        Xbox 360, PS3, PS2

Dora the Explorer: Dora Saves the

 Mermaids(TM)                            DS

Go, Diego, Go!: Safari Rescue(TM)        DS

Deal or No Deal: Secret Vault Games      PC

Grand Theft Auto: Vice City Stories

 (Japan)                                 PS2, PSP

Take-Two's lineup announced to date for the remainder of fiscal 2008

 includes the following titles:

Title                                    Platform

----------------------------------------------------------------------

                                         Xbox 360, PS3, Games for

Borderlands(TM)                           Windows(R)

Bully: Scholarship Edition               Xbox 360, Wii

Carnival Games                           DS

Don King Presents: Prizefighter          Xbox 360, Wii, DS

Dora the Explorer: Dora Saves the

 Mermaids(TM)                            PS2

Go, Diego, Go!: Safari Rescue(TM)        Wii, PS2

Grand Theft Auto IV                      Xbox 360, PS3

Grand Theft Auto IV episodic content     Xbox 360

Major League Baseball(R) 2K8             Multiple platforms

Midnight Club: Los Angeles               Xbox 360, PS3

NBA(R) 2K9                               Multiple platforms

NHL(R) 2K9                               Multiple platforms

Sid Meier's Civilization(R)

 Revolution(TM)                          Xbox 360, PS3, DS

Top Spin 3                               Xbox 360, PS3, Wii

SOURCE: Take-Two Interactive Software, Inc.