ACTIVISION INC.'S RENOWNED NINJA FRANCHISE SET TO MAKE ITS DEBUT ON THE XBOX® VIDEO GAME SYSTEM FROM MICROSOFT WITH TENCHU®: RETURN FROM DARKNESS™

Santa Monica, CA - July 25, 2003 - Authentic ninja action is set to strike on the Xbox®video game system from Microsoft with Activision, Inc.'s (Nasdaq: ATVI) Tenchu®: Return from Darkness™. Building on the best-selling Tenchu®: Wrath of Heaven™for the PlayStation®2 computer entertainment system, Tenchu: Return from Darkness boasts updated design and technical enhancements, new maps and features and support for Xbox(tm) Live. The title is being developed by K2, Ltd. in conjunction with Prosoft Corp. and is currently rated "RP" (Rating Pending) by the ESRB.

"We're excited to give Xbox gamers the opportunity to play the most authentic stealth based ninja game ever," said Larry Goldberg, executive vice president, Activision Worldwide Studios. "Tenchu: Return from Darkness takes the franchise to new heights with never before seen levels and enemies, enhanced maneuvers, more weapons and Xbox Live capabilities, making it the first Tenchu title to feature online gameplay."

Set in the late 1570's, one year after the original Tenchu, Tenchu: Return from Darkness allows players to assume the role of the ninjas Rikimaru, Ayame or the mysterious Tesshu as they battle the evil Tenrai and his six lords of darkness. As silent assassins, players must use cunning, strategy, deadly stealth and an arsenal of weapons to overcome dangerous missions and defend the Japanese countryside from Tenrai's armies.

Tenchu: Return from Darkness will feature three gameplay modes including single-player, two-player (versus and co-op) and Xbox Live. The title will also include 11 stages of gameplay in the story mode with two new single player maps, as well as six multiplayer levels. Additionally, the game will feature all new cut-scenes, enemy layouts and will allow players to hone their ninja skills before embarking on deadly missions in the new training mode.

The title will support Xbox Live, allowing for two-player co-op missions through all six multiplayer levels as well as voice chat functionality for those who choose to break the code of silence. Players can also engage in simultaneous stealth kills as the online ninjas make their way through each danger-filled stage.

Tenchu: Return from Darkness is scheduled for an early Spring 2004 release.