Net revenue for the third quarter was $206.4 million, compared to $241.2 million for the same period of fiscal 2006. Leading third quarter sales this year were The Darkness, Fantastic Four: Rise of the Silver Surfer, The BIGS and All-Pro Football 2K8, all of which were new titles released this quarter. The decrease in net revenue year over year primarily reflects the strong prior year sales of titles from the Company's Grand Theft Auto franchise, led by Grand Theft Auto: Liberty City Stories for the PlayStation®2 computer entertainment system, which was released in June 2006.

Net loss for the third quarter was $58.5 million or $0.81 per share, compared to a net loss of $91.4 million or $1.29 per share in the third quarter of fiscal 2006. As compared with the year-ago period, the 2007 third quarter results reflected a decrease in product costs, software development costs, royalties and operating expenses.

The third quarter 2007 loss includes pre-tax expenses totaling $12.4 million for business reorganization and related costs due to Take-Two's management changes, restructuring expenses from the Company's cost savings initiatives, legal expenses and other professional fees associated with the stock options investigation, responses to the New York County District Attorney's subpoenas, and other legal matters, as well as stock-based compensation expenses. Results for the third quarter 2006 included pre-tax expenses totaling $20.5 million for asset write-offs, severance and other expenses primarily related to studio closures, legal expenses and other professional fees associated with the stock options investigation, responses to the New York County District Attorney's subpoenas, and other legal matters, and stock-based compensation expenses. Third quarter 2006 results also reflected a non-cash charge of $59.5 million to record a valuation allowance on deferred tax assets.

Non-GAAP net loss, excluding the expense items noted above, was $46.1 million or $0.64 per share in the third quarter of 2007, versus $19.4 million or $0.27 per share in the third quarter of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

Among the significant recent business developments, the Company noted the following:

• Take-Two established 2K Play, a new publishing label focused on casual and family-friendly gaming.
• As part of the 2K Play initiative, Take-Two entered into an agreement with Nickelodeon to develop video games based on top-rated Nickelodeon properties including Dora the Explorer and Go, Diego, Go!
• 2K Games released BioShock for Xbox 360™ video game and entertainment system from Microsoft and Games for Windows® in its fourth quarter. This wholly owned and internally developed 2K title is the highest rated game to date on Xbox 360 according to both GameRankings.com and Metacritic.com, and has already shipped over 1.5 million units worldwide since its launch in late August.
• The Company shipped Carnival Games, a wholly owned and internally developed title for Nintendo's Wii™, which has been positively received by retail and consumers and is benefiting from the increasing demand for casual games.
• Take-Two announced the sale of Joytech, its video game accessories business, reflecting the Company's previously announced plans to divest its non-core businesses.

Strauss Zelnick, Chairman of Take-Two, stated, "Today we are establishing guidance for fiscal 2008 - the first full year to reflect the contributions of our new management team. Our outlook reflects a strong product pipeline, the benefits of a comprehensive restructuring and cost-efficiency program, including the sale of our non-core Joytech accessories division, and the expected profitability of our sports business. We also are announcing a new publishing label - 2K Play - focused on the expanding casual gamer market. We are proud of what this Company's management team has accomplished in a short time, and confident that our efforts will build the value of Take-Two in the future."

Ben Feder, Chief Executive Officer of Take-Two, added, "Take-Two is well-positioned to capitalize on the growth of the video game market as next generation consoles gain traction. Our creative teams are delivering a strong and increasingly diverse product portfolio, including our successful new BioShock franchise. We are looking forward to our 2007 holiday line up, as well as our solid 2008 slate, which includes the release of Grand Theft Auto IV in our fiscal 2008 second quarter."

For the nine months ended July 31, 2007, net revenues were $689.2 million, compared to $771.3 million for the same period a year ago. Net loss for the first nine months of 2007 was $131.3 million or $1.83 per share, compared to $170.9 million or $2.41 for the 2006 period. Results for the first nine months of 2007 reflect pre-tax expenses totaling approximately $44.7 million for items similar to those incurred in this year's third quarter. Results for the first nine months of 2006 included pre-tax expenses totaling $45.7 million for items similar to those incurred in last year's third quarter, as well as a non-cash charge of $59.5 million to record a valuation allowance on deferred tax assets.

Non-GAAP net loss was $86.6 million or $1.21 per share in the first nine months of 2007, versus $83.0 million or $1.17 per share in the comparable period of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

Key assumptions and dependencies underlying the Company's guidance include continued consumer acceptance of the Xbox 360, PS3 and Wii; the ability to develop and publish products that capture market share for these next generation systems while continuing to leverage opportunities on legacy platforms; as well as the timely delivery of the titles detailed in this release.

The following titles are planned for release in the remainder of fiscal 2007:

• Rockstar Games presents Table Tennis Wii
• Elder Scrolls IV®: Oblivion™
• Game of the Year Edition (GotY) Xbox 360, PC
• NHL® 2K8 Xbox 360, PS3, PS2
• NBA® 2K8 Xbox 360, PS3, PS2
• MLB® Power Pros Wii, PS2
• Manhunt 2 Wii, PS2, PSP

Take-Two's line up announced to date for fiscal 2008 includes the following titles:

• Bully: Scholarship Edition Xbox 360, Wii
• College Hoops 2K8 Xbox 360, PS3, PS2
• Dora the Explorer DS and consoles
• Go, Diego, Go! DS and consoles
• Midnight Club: Los Angeles Xbox 360, PS3
• Major League Baseball® 2K8 Multiple platforms
• Top Spin Tennis Wii
• Sid Meier's Civilization® Revolution™ Xbox 360, PS3, DS, Wii
• Grand Theft Auto IV Xbox 360, PS3
• Top Spin 3 Xbox 360, PS3
• Grand Theft Auto IV episodic content Xbox 360
• NBA® 2K9 Multiple platforms
• NHL® 2K9 Multiple platforms
• Borderlands Xbox 360, PS3, Games for Windows®