Fiscal First Quarter Results (comparisons are to the quarter ended June 30, 2008)

GAAP net revenue for the quarter, which includes the impact of deferred revenue adjustments, was $644 million, as compared with $804 million for the prior year. During the quarter, EA had a net revenue deferral of $172 million related to certain online-enabled packaged goods games and digital content as compared with a net benefit of $195 million in the first quarter of the prior year.

Non-GAAP net revenue was $816 million, up 34 percent as compared with $609 million for the prior year. Sales were driven by launches of The Sims 3, EA SPORTS Active, and Fight Night Round 4.

GAAP net loss for the quarter, including the impact of deferred revenue, was $234 million as compared with a net loss of $95 million for the prior year. GAAP diluted loss per share was $0.72 as compared with GAAP diluted loss per share of $0.30 for the prior year.

Non-GAAP net loss was $6 million as compared with a non-GAAP net loss of $135 million a year ago. Non-GAAP diluted loss per share was $0.02 as compared with a non-GAAP diluted loss per share of $0.42 for the prior year.

Trailing-twelve-month cash flow used in operations was $25 million as compared with cash flow generated from operations of $239 million a year ago. The Company ended the quarter with cash, cash equivalents and short-term investments of $1.8 billion.

“Good execution delivered better-than-expected financial results in the first quarter,” said John Riccitiello, Chief Executive Officer. “We are very pleased with the success of both The Sims 3 and EA SPORTS Active.”

“Our Q1 performance was driven by our previously announced cost-cutting initiatives and a strong frontline slate,” said Eric Brown, Chief Financial Officer. “We had a solid Q1 both top and bottom line and we are focused on delivering the balance of the year.”

Highlights (comparisons are to the quarter ended June 30, 2008)

• EA was the #1 publisher in North America and Europe in the June quarter. EA had four of the top-ten games in North America and Europe.
• EA launched five titles in the quarter that received a Metacritic rating of 80 or above, including: Fight Night Round 4, BOOM BLOX Bash Party, The Sims 3, Tiger Woods PGA TOUR 10 and EA SPORTS Active. Calendar year-to-date, EA has nine titles rated at 80 or above.
• Four titles won Best of E3 awards: Mass Effect 2 won Best RPG; Fight Night Round 4 won Best Sports Game; Star Wars: The Old Republic won Best PC Game; Left 4 Dead 2 won Best Online Multiplayer.
• The Sims 3 was the #1 selling title at retail in Europe and North America combined for the quarter.
• EA SPORTS Active sold over 1.8 million copies in the quarter – making it EA’s best-selling Wii title ever.
• EA’s Wii share hit a record 21 percent in North America and was 13 percent in Europe – driven by EA SPORTS Active, Tiger Woods PGA TOUR 10, EA SPORTS Grand Slam Tennis and Rock Band 2 in partnership with MTV Games.
• EA Digital non-GAAP revenue $124 million – up 38 percent year-over-year.
• EA Mobile, the world’s leading publisher of games for phones, delivered $50 million of non-GAAP revenue in the quarter – up 14 percent year-over-year.
• EA acquired J2Play, a leading social gaming company.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of August 4, 2009. Results may be materially different and are affected by many factors, including: development delays on EA’s products; competition in the industry; the health of the economy in the U.S. and abroad and the related impact on discretionary consumer spending; changes in anticipated costs; expected savings and impact on EA’s operations of the Company’s cost reduction plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; changes in foreign exchange rates; the financial impact of potential future acquisitions by EA; the popular appeal of EA’s products; EA’s effective tax rate; and other factors detailed in this release and in EA’s annual and quarterly SEC filings.

Fiscal Year Expectations – Ending March 31, 2010

• GAAP net revenue is expected to be between $3.7 and $3.85 billion – consistent with the Company’s previously provided guidance.
• Non-GAAP net revenue is expected to be approximately $4.3 billion – consistent with the Company’s previously provided guidance.
• GAAP diluted loss per share is expected to be between $0.85 and $1.35 – adjusted from the Company’s previously provided guidance of $0.85 and $1.45.
• Non-GAAP diluted earnings per share are expected to be approximately $1.00 – consistent with the Company’s previously provided guidance.
• For purposes of calculating fiscal year 2010 GAAP loss per share, the Company estimates a share count of 323 million and for non-GAAP EPS, the Company estimates a share count of 325 million.
• Expected non-GAAP net income excludes the following items from expected GAAP net income:

• $450 to $600 million for the impact of the change in deferred net revenue (packaged goods and digital content),
• $210 million of estimated stock-based compensation,
• $55 million of amortization of intangible assets,
• $25 to $35 million of restructuring charges,
• $14M loss on lease termination and facilities acquisition, and
• ($152) million in the difference between the Company’s GAAP and non-GAAP tax expenses.