Take-Two Interactive Software Acquires Gathering of Developers

Gathering to Continue to Operate Independently

Dallas, TX, May 1, 2000 -- Take-Two Interactive Software, Inc. (NASDAQ: TTWO) today announced it has acquired developer-driven computer and video game publisher Gathering of Developers. Gathering of Developers will act autonomously as a wholly-owned subsidiary of Take-Two Interactive, and continue to publish its properties and games in North America. As a result of this acquisition, the companies will be able to further leverage each other's strengths and expertise, including Gathering's impressive 2000/2001 lineup and quality reputation in the gaming industry, and Take-Two's worldwide distribution network and video game publishing expertise. Financial terms were not disclosed.

"In the early days of Gathering, Take-Two was the first company in the industry to recognize the strength of our business and believe in the talents of our executive staff and developers," said Mike Wilson, chief executive officer of Gathering of Developers. "This deal allows us to continue supporting our business plan of creating a first-rate developer-centric publishing house, as well as expand our operations to accept more developers and service them on a worldwide basis. In addition, our strength as a publisher is matched by Take Two's leadership in the worldwide distribution of computer software. Developers will get the best of both worlds."

The two companies have had a partnership since Gathering's inception in 1998 when Take-Two provided the company with initial funding, European co-publishing capabilities, and North American distribution infrastructure, as well as console development/publishing expertise through its Rockstar Games video game division. In January 1999, Take-Two became a minority equity partner (19.9% interest) in Gathering of Developers.

Gathering of Developers is a leading publisher of PC and video gaming software from such leading development houses as Apogee / 3D Realms (creators of Duke Nukem), PopTop Software (creators of Railroad Tycoon II series), Epic Games (creators of Unreal and Unreal Tournament), Terminal Reality (developers of Nocturne and FLY!), Ritual Entertainment (creators of Heavy Metal F.A.K.K.2), and Edge of Reality (Monster Truck Madness 64) amongst others. Each development house is also a shareholder of Gathering.

Under the acquisition, Take-Two Interactive gains a premier PC and console catalog, and Gathering of Developers is able to broaden its reach to the worldwide market through new distribution channels. Take-Two's strengths lie primarily in distribution infrastructure, both in Europe and North America, as a result of key acquisitions of BMG Interactive in Europe and Jack of All Games, the world's largest third party distributor of games for Sony, Nintendo and Sega console game systems. Take-Two will continue to distribute Gathering's products through its global Jack of All Games. Take-Two has entered into employment agreements with Gathering's CEO Mike Wilson and President Harry Miller, for five and three years respectively, to continue in their current capacities. Gathering's management will stay in place and the Board of Developers will continue to handle product submission evaluations.

"The Gathering's management, including representatives from its extremely talented founding developers, has done an incredible job in remaining true to the company's 'developer first' credo, while at the same time launching and supporting a highly acclaimed line-up of games," said Ryan Brant, president and chief executive officer of Take-Two Interactive Software, Inc. "This deal allows both companies to continue expanding into new markets and new genres of games, bringing more value to our partners, developers and consumers."

"As an independent publisher, Gathering proved itself to be a trend-setter and industry leader in the gaming world with strong ideals and goals," said Harry Miller, president of Gathering of Developers. "Our alliance with Take-Two allows us to offer an even stronger developer deal that includes greater distribution, stronger capital reserves, and console publishing expertise. We will remain true to our mantra of being a developer friendly publisher and will continue the fight for greater information sharing and recognition of the artists, both financially and artistically. We amazed the industry when we launched in 1998 with our high-tier founding developers, and we will shake up the industry once again with partnerships in 2000 and beyond."

Since The Gathering's founding in January 1998 by industry executives Mike Wilson and Harry Miller and hit development companies (Epic Games, 3D Realms, PopTop Software, Terminal Reality, Edge of Reality and Ritual Entertainment), the company has become a premier computer and video game publisher. The company is known industry-wide as a leader and a relationship-based publisher that treats and markets game developers as professional entertainment artists. The company has been recognized as such by UPSIDE Magazine (as a Hot 100 Company), Entertainment Weekly, the Wall Street Journal, and Texas Monthly, among others. Artistic talent is attracted to Gathering's business model, as evidenced through its partnerships with KISS' Gene Simmons; Haxan Films, creators of the Blair Witch Project; and Kevin Eastman, owner of Heavy Metal magazine and property. The company's key game have been the best-selling Railroad Tycoon II series, and the critically acclaimed Nocturne, Darkstone, Age of Wonders and FLY!. Its 2000/2001 line-up includes highly anticipated games such as Heavy Metal F.A.K.K. 2, KISS Psycho Circus, Max Payne, Rune, 4 x 4 Evolution, Tropico and the Blair Witch games.

Take Two Interactive Headquartered in New York City, Take-Two Interactive Software, Inc. is an integrated global developer, marketer, distributor, and publisher of interactive entertainment software games and accessories for the PC, Sony PlayStation, Nintendo 64, Nintendo Game Boy Color and the Sega Dreamcast. The Company publishes and develops products through various wholly owned subsidiaries including: Gathering of Developers, Broadband Studios, Rockstar Games, TalonSoft, Joytech and DMA Design. The Company maintains a publishing and distribution partnership with, and 19.9% equity interest in, Bungie Software. The Company's Jack of All Games value added distribution arm maintains sales and marketing offices in Cincinnati, New York, Toronto, London, Paris, Munich, Oslo, Stockholm, Copenhagen, Milan and Sydney. The Company recently formed Broadband Studios, Inc. to independently pursue technology and content opportunities within the emerging world of broadband game delivery.

Gathering of Developers Founded in Dallas, TX in January 1998, Gathering of Developers is a developer-driven computer and video game publishing company, and a wholly-owned subsidiary of Take-Two Interactive Software, Inc. The company's mission is to be the worldwide leader in the development and delivery of commercially successful computer and video game software designed for a range of platforms. The company's pioneering partners are industry leaders and proven hit makers 3D Realms, Epic Games, PopTop Software, Ritual Entertainment, Terminal Reality and Edge of Reality. For more information visit Gathering of Developers' Web site at http://www.godgames.com.

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