Net revenue for the third fiscal quarter was $433.8 million, compared to $206.4 million for the same quarter of fiscal 2007. Third quarter sales were led by the blockbuster Grand Theft Auto IV, as well as Top Spin 3 and Sid Meier’s Civilization Revolution.

Net income for the third quarter was $51.8 million or $0.67 per share, compared to a net loss of ($58.5) million or ($0.81) per share in the third quarter of fiscal 2007.

The third quarter results include $12.6 million in stock-based compensation expense ($0.16 per share); $5.4 million in professional fees and legal expenses, primarily related to Electronic Arts’ unsolicited tender offer ($0.07 per share); and $1.8 million in business reorganization costs ($0.02 per share). Results for the third quarter of 2007 included $10.8 million of business reorganization costs, legal expenses and other professional fees ($0.15 per share); as well as $2.8 million in stock-based compensation expense ($0.04 per share).

Non-GAAP net income was $71.5 million or $0.93 per share in the third quarter, compared to a net loss of ($44.9) million or ($0.62) per share in the third quarter of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on non-GAAP items.)

For the nine months ended July 31, 2008, net revenues were $1,214.1 million, compared to $689.2 million for the same period a year ago. Net income for the first nine months of fiscal 2008 was $112.1 million or $1.48 per share, compared to a loss of ($131.3) million or ($1.83) for the 2007 period. Results for the first nine months of fiscal 2008 include $31.1 million in stock-based compensation expense ($0.41 per share); $10.7 million in professional fees and legal expenses, primarily related to Electronic Arts’ unsolicited tender offer ($0.14 per share); and $2.9 million in business reorganization costs ($0.04 per share). Results for the first nine months of fiscal 2007 included $34.3 million of business reorganization costs, legal expenses and other professional fees ($0.48 per share); as well as $12.6 million in stock-based compensation expense ($0.18 per share).

Non-GAAP net income was $156.6 million or $2.07 per share in the first nine months of 2008, compared to a net loss of ($84.4) million or ($1.18) per share in the comparable period of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

The following titles are planned for release in the remainder of fiscal 2008:

• BioShock (PS3)
• Carnival Games: Mini-Golf (Wii)
• Dora the Explorer: Dora Saves the Snow Princess (Wii, PS2, NDS)
• Go, Diego, Go!: Great Dinosaur Rescue (Wii, PS2, NDS)
• Grand Theft Auto IV (Japanese edition) (Xbox 360, PS3)
• Midnight Club: Los Angeles (Xbox 360, PS3)
• Midnight Club: LA Remix (PSP)
• NBA 2K9 (Multiple platforms)
• NHL 2K9 (Multiple platforms)
• Sid Meier’s Civilization IV: Colonization (PC)
• The Wonder Pets!: Save the Animals (NDS)

Take-Two’s line up announced to date for fiscal 2009 includes the following titles:

• BioShock 2 (TBA)
• Borderlands (Xbox 360, PS3, PC)
• Champions Online TBA (MMOG)
• Grand Theft Auto: IV (PC)
• Grand Theft Auto: Chinatown Wars (NDS)
• Grand Theft Auto IV episodic content (Xbox 360)
• Mafia II (Multiple platforms)
• Major League Baseball 2K9 (Multiple platforms)
• MLB Superstars (Wii)
• NBA 2K10 (Multiple platforms)
• NHL 2K10 (Multiple platforms)

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

• Sales of Rockstar Games’ blockbuster Grand Theft Auto IV continued to exceed the Company’s expectations. Over 10 million units have been sold through to consumers as of August 16, 2008.
• Carnival Games, a wholly owned and internally developed title for the Wii home video game system from Nintendo and Nintendo DS, has shipped over 2 million units since its debut in late August 2007. 2K Play will be expanding the franchise with Carnival Games: Mini-Golf for the Wii in the fourth quarter of fiscal 2008.
• Gary Dale was named Chief Operating Officer of Take-Two, responsible for Take-Two's publishing labels, sales activities, international expansion and business development initiatives. He had previously served as Executive Vice President of Take-Two.

“Take-Two’s exceptionally robust third quarter results reflected our continuing efforts to build a diverse roster of outstanding entertainment software brands, supported by an increasingly productive and efficient business organization,” said Strauss Zelnick, Chairman of Take-Two. “Thanks in particular to the creativity of our global development teams and their passion for producing great entertainment, we are benefiting from a portfolio that is the strongest in our Company’s history, as well as one of the most valuable in our industry.”

Ben Feder, Chief Executive Officer of Take-Two, noted, “I’m extremely pleased with our strong position heading into the holiday season. Our world-class holiday portfolio includes Grand Theft Auto IV, Top Spin 3, Sid Meier’s Civilization Revolution, and Carnival Games, as well as upcoming hits such as Midnight Club: Los Angeles, BioShock for PS3, and a range of sports titles. Longer term, we’re sharply focused on bringing our popular products to new regions and new markets, as we continue to seek opportunities for profitable growth and enhanced stockholder value.”