Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Second Quarter Fiscal 2007 Financial Results
    Announces Restructuring Plan to Improve Financial and Operating
                              Performance

            Lainie Goldstein Named Chief Financial Officer

NEW YORK--(BUSINESS WIRE)--June 11, 2007--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its second quarter and six months ended April 30, 2007, which were in line with the Company's previously issued guidance.

Net revenue for the second quarter was $205.4 million, compared to $265.1 million for the same period of fiscal 2006. The decrease in net revenue primarily reflected the significant sales contributed by The Elder Scrolls IV: Oblivion in the year-ago period, partially offset in the fiscal 2007 second quarter by strong sales of Grand Theft Auto titles and Major League Baseball 2K7 in comparison to the same franchises in the prior period. Both Grand Theft Auto: Vice City Stories and Major League Baseball 2K7 sold over 1 million units each during the quarter.

Net loss for the recent quarter was $51.2 million or $0.71 per share, compared to a net loss of $50.4 million or $0.71 per share in the second quarter of fiscal 2006. As compared with the year-ago period, the 2007 second quarter results reflected an improved gross margin due to lower external royalty costs, stronger margins on sports products and reduced product impairment charges. The quarter's operating results also benefited from a decrease in selling and marketing expense, along with a realization of cost benefits from the prior year development studio closings and the absence of costs related to these closings. This was offset this year by business reorganization and related expenses, and increased general and administrative expenses related to professional fees associated with the investigation of stock option grants and responses to the New York County District Attorney's subpoenas, expenses related to other legal matters, and the relocation of the Company's international headquarters.

The second quarter 2007 loss includes pre-tax expenses totaling $21.6 million for business reorganization and related costs due to the Company's recent management and board changes, legal expenses and other professional fees associated with the investigation of stock option grants, responses to the New York County District Attorney's subpoenas, and other legal matters, as well as stock-based compensation expenses. Results for the second quarter 2006 included pre-tax expenses totaling $20.4 million for asset write-offs, severance and other expenses primarily related to studio closures, and stock-based compensation expenses.

Non-GAAP net loss, excluding the expense items noted above, was $29.7 million or $0.41 per share in the second quarter of 2007, versus $37.0 million or $0.52 per share in the second quarter of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

For the six months ended April 30, 2007, net revenues were $482.8 million, compared to $530.1 million for the same period a year ago. Net loss for the first half of 2007 was $72.8 million or $1.02 per share, compared to $79.5 million or $1.12 for the 2006 period. Results for the first six months of 2007 reflect pre-tax expenses totaling approximately $32.3 million related to the Company's recent management and board changes, legal expenses and other professional fees associated with the investigation of stock option grants, responses to the New York County District Attorney's subpoenas and other legal matters, and stock-based compensation expenses. Results for the first six months of 2006 included pre-tax expenses totaling $25.3 million for asset write-offs, severance and other expenses primarily related to studio closures, and stock-based compensation expenses.

Non-GAAP net loss was $40.5 million or $0.57 per share in the first six months of 2007, versus $63.5 million or $0.90 per share in the comparable period of 2006. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

    Take-Two's cash position was $108.5 million as of April 30, 2007.

    Restructuring Plan

After a comprehensive business review, Take-Two's new management team today announced the first of a series of initiatives to revitalize the Company. These initiatives are designed to enhance the efficiency of the organizational structure, support a highly creative and financially disciplined product development process, increase operating margins and improve the Company's productivity and cost-effectiveness. Take-Two said its evaluation process is continuing and expects to report on progress in additional areas in the future.

Take-Two's restructuring plan to date consists primarily of the following key elements:

    --  Restructure Take-Two's international operations to consolidate
        and align the marketing, sales and operational functions
        according to business discipline rather than geography to
        create a more efficient and responsive international
        organization

    --  Realign label and studio administrative functions to report to
        the respective departments at the corporate level, thereby
        ensuring increased control and accountability

    --  Consolidate the management, marketing and business development
        operations of the 2K and 2K Sports labels on the West Coast to
        improve access to resources, work more closely with the sports
        development teams, and provide a centralized organization to
        increase efficiency and better support the growth of these
        labels

    --  Consolidate third-party PC distribution into North American
        sales

Take-Two expects to reduce fixed overhead from these actions by approximately $25 million, which should be realized by the end of fiscal 2008 on an annualized run-rate basis. The Company anticipates approximately $15 million of charges related to the restructuring, excluding any asset impairments, through fiscal 2008, with approximately half of the charges expected in fiscal 2007.

Strauss Zelnick, Chairman, commented, "When our management team took on a leadership role at Take-Two, we committed ourselves to making this the most creative, the most innovative and the most efficient company in our industry. We also pledged to our shareholders and employees that we would present a detailed action plan within our first 100 days. With over one month remaining, we have already made significant progress in assessing the organization and launching a major restructuring initiative. We look forward to communicating the full results of our 100 day plan in early July."

Ben Feder, Chief Executive Officer, added, "We are very encouraged by the professionalism of the entire organization, the determination of our creative people to deliver great games, the commitment of our senior management team, and the strong potential of our core business. While we have much work ahead of us, our team is confident that Take-Two can achieve the objectives we envisioned when we began this process."

Mr. Feder continued, "While the decisions we are announcing today were difficult and will unfortunately require employee layoffs, we believe these necessary actions will improve the financial and operational performance of Take-Two, leading to greater value for our shareholders."

Financial Guidance

Take-Two is reiterating its guidance for fiscal 2007 of revenue in the range of $1.2 billion to $1.25 billion and break even results on a GAAP basis, including stock-based compensation expense of $0.22 per share, but excluding any charges related to the Company's reorganization expenses and restructuring initiatives. Included in the Company's reorganization expenses is additional stock-based compensation expense of $0.03 per share. Additionally, fiscal 2007 estimates only reflect tax expense for the Company's international operations.

For the third quarter ending July 31, 2007, Take-Two is providing initial guidance of net revenue in the range of $195 million to $215 million, with a GAAP net loss per share in the range of $0.60 to $0.65, including stock-based compensation expense of $0.06 per share, but excluding any charges related to the Company's reorganization expenses and restructuring initiatives. Additionally, third quarter estimates reflect no tax benefit.

For the fourth quarter ending October 31, 2007, Take-Two is providing initial guidance of net revenue in the range of $520 million to $550 million, with diluted net earnings per share in the range of $1.35 to $1.40, including stock-based compensation expense of $0.06 per share, but excluding any charges related to the Company's reorganization expenses and restructuring initiatives. Included in the Company's reorganization expenses is additional stock-based compensation expense of $0.03 per share. Additionally, fourth quarter estimates only reflect tax expense for the Company's international operations.

Key assumptions and dependencies underlying fiscal 2007 guidance include continued consumer acceptance of the Xbox 360, PLAYSTATION 3 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.

CFO Announcement

Take-Two also announced today that Lainie Goldstein, interim Chief Financial Officer, has been named to the CFO position. Ms. Goldstein, who joined the Company in 2003 and was recently Senior Vice President of Finance, has more than 15 years of financial and business experience in the software, entertainment, retail and apparel industries. Prior to joining Take-Two, she served as Vice President, Finance and Business Development with Nautica Enterprises. A CPA, Ms. Goldstein also held positions in the audit and reorganization departments at Grant Thornton.

Mr. Feder commented, "We are pleased to fill our CFO position with a financial executive of Lainie's experience and ability. She not only brings a wealth of expertise in the industry and related businesses, but also has demonstrated her commitment to Take-Two and desire to help us reach our potential."

Product Pipeline

Take-Two has announced expected release dates for the following titles:

                                                   Expected Release
Title                  Platform                     (Fiscal Period)
----------------------------------------------------------------------

All-Pro Football 2K8   Xbox 360, PS3               Third quarter 2007
Fantastic 4: Rise of   Xbox 360, PS3, Wii, PS2, DS Third quarter 2007
 the Silver Surfer
Manhunt 2              Wii, PS2, PSP               Third quarter 2007
The BIGS               Xbox 360, PS3, Wii, PS2,    Third quarter 2007
                        PSP
The Darkness           Xbox 360, PS3               Third quarter 2007
BioShock               Xbox 360, PC                Fourth quarter 2007
Carnival Games         Wii                         Fourth quarter 2007
Grand Theft Auto IV    Xbox 360, PS3               Fourth quarter 2007
NBA 2K8                Xbox 360, PS3, PS2          Fourth quarter 2007
NHL 2K8                Xbox 360, PS3, PS2          Fourth quarter 2007

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

Title                                               Platform
----------------------------------------------------------------------

Beaterator                                          PSP
College Hoops 2K8                                   Xbox 360, PS3, PS2
Grand Theft Auto IV - Episodic Content              Xbox 360
L.A. Noire                                          PS3
Midnight Club: Los Angeles                          Xbox 360, PS3
Major League Baseball 2K8                           Multiple Platforms
NBA 2K9                                             Multiple Platforms
NHL 2K9                                             Multiple Platforms

Non-GAAP Financial Measures

In addition to reporting financial results in accordance with U.S. generally accepted accounting principles (GAAP), Take-Two also uses non-GAAP measures of financial performance that exclude certain non-recurring or non-cash items. Non-GAAP gross profit, operating income, net income and diluted earnings per share are measures that exclude certain non-recurring or non-cash items and should be considered in addition to results prepared in accordance with GAAP, and are not intended to be considered in isolation from, as a substitute for, or superior to, GAAP results. These non-GAAP financial measures may be different from similarly titled measures used by other companies.

The non-GAAP measures exclude the following items from the Company's statements of operations:

    --  Business reorganization and related restructuring expenses

    --  Stock-based compensation

    --  Professional fees and expenses associated with the Company's
        stock options investigation and certain other unusual
        regulatory and legal matters

    --  Non-cash charges related to asset write-offs in connection
        with business restructurings and studio closings

    --  Severance and other costs related to studio closures

    --  Income tax effects of the items listed above

In addition, the Company may consider whether other significant non-recurring items that arise in the future should also be excluded from the non-GAAP financial measures it uses.

The Company believes that these non-GAAP financial measures, when taken into consideration with the corresponding GAAP financial measures, are important in gaining an understanding of the Company's ongoing business. These non-GAAP financial measures also provide for comparative results from period to period. In addition, the Company believes it is appropriate to exclude certain items as follows:

Business reorganization and related restructuring expenses

In March 2007, the Company's stockholders elected a new slate of members to Take-Two's Board of Directors, who immediately removed the Company's former President and Chief Executive Officer. Shortly thereafter, the Company's former Chief Financial Officer resigned. As a result of these actions, the Company incurred significant costs for professional fees and severance charges and expects to incur additional costs in the future. Additionally, the new management team determined that certain intellectual property was impaired and it was written off in the second quarter. The Company believes that additional restructuring costs will occur within the 2007 and 2008 fiscal years and will primarily relate to headcount reduction, asset write-offs and associated professional fees. The Company does not engage in reorganization and restructuring activities on a regular basis and therefore believes it is appropriate to exclude business reorganization and related restructuring expenses from its non-GAAP financial measures.

Stock-based compensation

Take-Two does not consider stock-based compensation charges when evaluating business performance and management does not contemplate stock-based compensation expense in their short and long-term operating plans. Furthermore, executive and management incentive compensation plans are generally based on measures that exclude the impact of stock-based compensation. The Company places greater emphasis on shareholder dilution than accounting charges when assessing the impact of stock-based equity awards.

Professional fees and expenses associated with the Company's stock options investigation and certain other unusual regulatory and legal matters

The Company incurred significant legal and other professional fees associated with both the investigation of stock option grants and the Company's responses to the New York County District Attorney's subpoenas. One of management's primary objectives in the 2007 fiscal year is to bring conclusion to its regulatory matters. The Company has incurred substantial expenses for professional fees and has accrued for legal settlements that are outside its ordinary course of business and as a result has excluded such expenses from its non-GAAP financial measures.

Non-cash charges related to asset write-offs in connection with business restructurings and studio closings

In April 2006, impairment charges were recorded in connection with studio closings to write-off software development costs related to several titles in development. The impairment charges were based on an assessment of the future recoverability of capitalized software balances related to these titles and the determination that these titles were unlikely to recover capitalized costs given a change in sales expectations as a result of weaker market conditions, the closure and anticipated closure of development studios, uncertainty involved in the console transition and historical performance of the titles. This charge was recorded as a component of cost of goods sold.

In addition, impairment charges were incurred related to the write-off of certain trademarks and acquired intangibles based on management's assessment of the future value of these assets including future business prospects and estimated cash flows to be derived from these assets. This charge was recorded in depreciation and amortization expense.

The Company believes these charges were each based on a unique set of business objectives and therefore believes it is appropriate to exclude these non-cash charges related to asset write-offs from its non-GAAP financial measures.

Severance and other costs from studio closures

In connection with certain studio closures in 2006, the Company incurred severance and other costs. The Company does not regularly close development studios and therefore believes it is appropriate to exclude these from its non-GAAP financial measures. These costs were recorded in research and development and general and administrative expenses.

EBITDA and Adjusted EBITDA

Earnings before interest, taxes, depreciation and amortization ("EBITDA") is a financial measure not calculated and presented in accordance with accounting principles generally accepted in the United States. Management uses EBITDA adjusted for business reorganization and related expenses ("Adjusted EBITDA"), among other measures, in evaluating the performance of the Company's business units. Adjusted EBITDA is also a significant component of the Company's incentive compensation plans. Adjusted EBITDA should not be considered in isolation or as a substitute for net income/(loss) prepared in accordance with GAAP.

Conference Call

Take-Two will host a conference call today at 4:30 pm Eastern Time to review these results and discuss other topics. The call can be accessed by dialing (877) 407-0984 or (201) 689-8577. A live listen-only webcast of the call will be available by visiting http://ir.take2games.com and a replay will be available following the call at the same location.

About Take-Two Interactive Software

Headquartered in New York City, Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games for the PC, PlayStation(R) game console, PlayStation(R)2 and PLAYSTATION(R)3 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox(R) and Xbox 360(TM) video game and entertainment systems from Microsoft, Wii(TM), Nintendo GameCube(TM), Nintendo DS(TM) and Game Boy(R) Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K and 2K Sports, and Global Star Software; and distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com.

All trademarks and copyrights contained herein are the property of their respective holders.

Xbox, Xbox 360 and Xbox Live are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries.

"PlayStation", "PLAYSTATION", "PSP" and the "PS" Family logo are registered trademarks of Sony Computer Entertainment Inc. Memory Stick Duo(TM) may be required (sold separately).

(TM), (R), Game Boy Advance, Nintendo GameCube, Nintendo DS and the Wii logo are trademarks of Nintendo. (C) 2006 Nintendo.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the beliefs of our management as well as assumptions made by and information currently available to them. The Company has no obligation to update such forward-looking statements. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include the matters set forth in this press release, including statements as to the Company's expectations regarding its planned restructuring, including the amount and timing of restructuring and impairment charges, expected expense reductions and future cost savings, as well as statements regarding the magnitude of the Company's workforce reduction. Additional risks and uncertainties relate to the Special Committee's investigation of the Company's stock option grants and the restatement of our consolidated financial statements. The investigation and conclusions of the Special Committee may result in claims and proceedings relating to such matters, including previously disclosed stockholder and derivative litigation and actions by the Securities and Exchange Commission and/or other governmental agencies and negative tax or other implications for the Company resulting from any accounting adjustments or other factors. Other important factors are described in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2006 in the section entitled "Risk Factors".

         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)

                              Three months ended   Six months ended
                                   April 30,            April 30,
                              ----------------------------------------
                                2007      2006      2007       2006
                              --------- --------- --------- ----------

Net revenue                   $205,436  $265,122  $482,776  $ 530,103
----------------------------- --------- --------- --------- ----------

Cost of goods sold:
  Product costs                105,679   130,940   269,822    291,793
  Software development costs
   and royalties                53,903   116,410    93,985    164,871
----------------------------- --------- --------- --------- ----------
Total cost of goods sold       159,582   247,350   363,807    456,664
----------------------------- --------- --------- --------- ----------

Gross profit                    45,854    17,772   118,969     73,439

  Selling and marketing         28,159    32,194    63,183     73,838
  General and administrative    40,471    33,705    79,085     72,158
  Research and development      11,936    16,097    26,086     33,806
  Business reorganization and
   related                       8,962         -     8,962          -
  Impairment of long-lived
   assets                            -     6,249         -      6,249
  Depreciation and
   amortization                  7,076     6,695    13,737     13,346
----------------------------- --------- --------- --------- ----------
Total operating expenses        96,604    94,940   191,053    199,397
----------------------------- --------- --------- --------- ----------
Loss from operations           (50,750)  (77,168)  (72,084)  (125,958)
Interest income, net             1,022         4     1,884        257
----------------------------- --------- --------- --------- ----------
Loss before income taxes       (49,728)  (77,164)  (70,200)  (125,701)
Provision (benefit) for
 income taxes                    1,521   (26,791)    2,597    (46,206)
----------------------------- --------- --------- --------- ----------
Net loss                      $(51,249) $(50,373) $(72,797) $ (79,495)
============================= ========= ========= ========= ==========

Basic and diluted loss per
 share                         ($ 0.71)  ($ 0.71)  ($ 1.02)   ($ 1.12)
============================= ========= ========= ========= ==========
                                     -         -
Basic and diluted weighted
 average shares outstanding     71,736    70,979    71,548     70,890
============================= ========= ========= ========= ==========


                              Three months ended   Six months ended
                                   April 30,            April 30,
                              ----------------------------------------
OTHER INFORMATION               2007      2006      2007       2006
----------------------------- --------- --------- --------- ----------

Total revenue mix
  Publishing                        75%       75%       65%        68%
  Distribution                      25%       25%       35%        32%

Geographic revenue mix
  North America                     73%       72%       75%        72%
  International                     27%       28%       25%        28%

Publishing platform revenue mix
  Sony PlayStation 2                38%       20%       37%        24%
  Microsoft Xbox 360                21%       39%       18%        26%
  PC                                12%       21%       12%        17%
  Sony PSP                          11%        8%       16%        19%
  Sony PLAYSTATION 3                10%        0%        8%         0%
  Accessories and other              3%        4%        4%         5%
  Microsoft Xbox                     3%        6%        3%         6%
  Nintendo Handhelds                 2%        3%        1%         2%
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except per share amounts)

                                                April 30,  October 31,
                                                  2007        2006
                                               ----------- -----------
                    ASSETS                     (Unaudited)
Current assets:
 Cash and cash equivalents                       $108,516    $132,480
 Accounts receivable, net of allowances of
  $52,847 and $91,509 at April 30, 2007 and
  October 31, 2006, respectively                   70,406     143,199
 Inventory, net                                    80,228      95,520
 Software development costs and licenses          117,632      85,207
 Prepaid taxes and taxes receivable                39,710      60,407
 Prepaid expenses and other                        34,712      28,060
---------------------------------------------- ----------- -----------
    Total current assets                          451,204     544,873
---------------------------------------------- ----------- -----------

 Fixed assets, net                                 48,784      47,496
 Software development costs and licenses, net
  of current portion                               37,880      31,354
 Goodwill                                         190,693     187,681
 Other intangibles, net                            34,845      43,248
 Other assets                                      12,173      14,154
---------------------------------------------- ----------- -----------
    Total assets                                 $775,579    $868,806
============================================== =========== ===========

     LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                                $ 77,818    $123,947
 Accrued expenses and other current
  liabilities                                     132,408     128,282
 Deferred revenue                                  36,678      11,317
---------------------------------------------- ----------- -----------
    Total current liabilities                     246,904     263,546
---------------------------------------------- ----------- -----------
 Deferred revenue                                  25,000      50,000
 Other long-term liabilities                        6,437       4,868
---------------------------------------------- ----------- -----------
    Total liabilities                             278,341     318,414
---------------------------------------------- ----------- -----------
Commitments and contingencies

Stockholders' equity:
 Common stock, $.01 par value, 100,000 shares
  authorized; 72,971 and 72,745 shares issued         730         727
  and outstanding at April 30, 2007 and
   October 31, 2006, respectively
 Additional paid-in capital                       494,934     482,104
 Retained earnings (accumulated deficit)          (12,138)     60,659
 Accumulated other comprehensive income            13,712       6,902
---------------------------------------------- ----------- -----------
    Total stockholders' equity                    497,238     550,392
---------------------------------------------- ----------- -----------

---------------------------------------------- ----------- -----------
    Total liabilities and stockholders' equity   $775,579    $868,806
============================================== =========== ===========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (in thousands)

                                                    Six months ended
                                                        April 30,
                                                   -------------------
                                                     2007      2006
                                                   --------- ---------
Operating activities:
  Net loss                                         $(72,797) $(79,495)
  ------------------------------------------------ --------- ---------
  Adjustments to reconcile net loss to net cash
   provided by (used for) operating activities:
   Amortization and write-off of software
    development costs, licenses and intellectual
    property                                         49,688    94,007
   Depreciation and amortization of long-lived
    assets                                           13,737    13,346
   Impairment of long-lived assets                        -     6,249
   Stock based compensation                           8,777     8,694
   Benefit for deferred income taxes                   (135)  (29,654)
   Provision for price concessions, sales
    allowances and doubtful accounts                 38,388    94,524
   Foreign currency transaction gain and other         (959)   (1,252)
  Changes in assets and liabilities, net of effect
   from purchases of businesses:
   Accounts receivable                               37,869   (24,542)
   Inventory                                         15,292    45,348
   Software development costs and licenses          (77,589)  (74,722)
   Prepaid expenses, other current and other non-
    current assets                                   16,150      (199)
   Accounts payable, accrued expenses, deferred
    revenue and other liabilities                   (42,461)   (9,661)
  ------------------------------------------------ --------- ---------
  Total adjustments                                  58,757   122,138
  ------------------------------------------------ --------- ---------
  Net cash (used for) provided by operating
   activities                                       (14,040)   42,643
  ------------------------------------------------ --------- ---------

Investing activities:
  Purchase of fixed assets                          (13,090)  (13,009)
  Payments for purchases of businesses, net of
   cash acquired                                       (982)     (191)
  ------------------------------------------------ --------- ---------
  Net cash used for investing activities            (14,072)  (13,200)
  ------------------------------------------------ --------- ---------

Financing activities:
  Proceeds from exercise of stock options               802     1,944
  Excess tax benefit on exercise of stock options         -       124
  ------------------------------------------------ --------- ---------
  Net cash provided by financing activities             802     2,068
  ------------------------------------------------ --------- ---------
  Effects of exchange rates on cash and cash
   equivalents                                        3,346     2,362
  ------------------------------------------------ --------- ---------
  Net (decrease) increase in cash and cash
   equivalents                                      (23,964)   33,873
  Cash and cash equivalents, beginning of year      132,480   107,195
  ------------------------------------------------ --------- ---------
  Cash and cash equivalents, end of period         $108,516  $141,068
  ================================================ ========= =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                             Non-GAAP Reconciling Items
                       --------------------------------------
                                                             Non-GAAP
               Three                                           three
               months  Business  Professional Stock-          months
                ended   reorgani-  fees and   based            ended
                April  zation and   legal     compen-  Tax     April
               30, 2007  related    matters   sation  effects 30, 2007
              --------------------------------------------------------

Net revenue   $205,436 $       - $         - $     - $     - $205,436
-------------- -------------------------------------------------------

Cost of goods
 sold:
Product costs  105,679    (5,164)          -       -       -  100,515
Software
 development
 costs and
 royalties      53,903         -           -       -       -   53,903
-------------- -------------------------------------------------------
Total cost of
 goods sold    159,582    (5,164)          -       -       -  154,418
-------------- -------------------------------------------------------

Gross profit    45,854     5,164           -       -       -   51,018

 Selling and
  marketing     28,159         -           -    (312)      -   27,847
 General and
  admini-
  strative      40,471         -      (3,934) (2,154)      -   34,383
 Research and
  development   11,936         -           -  (1,070)      -   10,866
 Business
  reorgani-
  zation and
  related        8,962    (8,962)          -       -       -        -
 Impairment of
  long lived
  assets             -         -           -       -       -        -
 Depreciation
  and
  amortization   7,076         -           -       -       -    7,076
-------------- -------------------------------------------------------
Total
 operating
 expenses       96,604    (8,962)     (3,934) (3,536)      -   80,172
-------------- -------------------------------------------------------
Loss from
 operations    (50,750)   14,126       3,934   3,536       -  (29,154)
Interest
 income          1,022         -           -       -       -    1,022
-------------- -------------------------------------------------------
Loss before
 income taxes  (49,728)   14,126       3,934   3,536       -  (28,132)
Provision
 (benefit) for
 income taxes    1,521         -           -       -       -    1,521
-------------- -------------------------------------------------------
Net loss      $(51,249)$  14,126 $     3,934 $ 3,536 $     - $(29,653)
============== =======================================================

Basic and
 diluted loss
 per share     ($ 0.71)                                       ($ 0.41)
============== ========                                      =========

Basic and
 diluted
 weighted
 average
 shares
 outstanding    71,736                                         71,736
============== ========                                      =========

EBITDA:
Net loss      $(51,249)                                      $(29,653)
Provision
 (benefit) for
 income taxes    1,521                                          1,521
Interest
 income         (1,022)                                        (1,022)
Depreciation
 and
 amortization    7,076                                          7,076
               --------                                      ---------
EBITDA        $(43,674)                                      $(22,078)
Add:
Business
 reorgani-
 zation and
 related        14,126                                              -
               --------                                      ---------
Adjusted
 EBITDA       $(29,548)                                      $(22,078)
               ========                                      =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                               Non-GAAP Reconciling Items
                           ----------------------------------
                            Asset   Severance
                             write-    and                   Non-GAAP
                   Three     offs     other                    three
                   months   related  related  Stock-          months
                    ended     to       to     based            ended
                    April   studio   studio   compen-  Tax     April
                   30, 2006 closures closures sation  effects 30, 2006
                  ----------------------------------------------------

Net revenue       $265,122 $      -  $     - $     - $     - $265,122
----------------- ----------------------------------------------------

Cost of goods
 sold:
Product costs      130,940     (253)       -       -       -  130,687
Software
 development
 costs and
 royalties         116,410  (11,913)       -       -       -  104,497
----------------- ----------------------------------------------------
Total cost of
 goods sold        247,350  (12,166)       -       -       -  235,184
----------------- ----------------------------------------------------

Gross profit        17,772   12,166        -       -       -   29,938

 Selling and
  marketing         32,194        -        -    (517)      -   31,677
 General and
  administrative    33,705        -     (372) (2,211)      -   31,122
 Research and
  development       16,097        -   (1,593) (1,133)      -   13,371
 Business
  reorganization
  and related            -        -        -       -       -        -
 Impairment of
  long lived
  assets             6,249   (2,442)       -       -       -    3,807
 Depreciation and
  amortization       6,695        -        -       -       -    6,695
----------------- ----------------------------------------------------
Total operating
 expenses           94,940   (2,442)  (1,965) (3,861)      -   86,672
----------------- ----------------------------------------------------
Loss from
 operations        (77,168)  14,608    1,965   3,861       -  (56,734)
Interest income          4        -        -       -       -        4
----------------- ----------------------------------------------------
Loss before
 income taxes      (77,164)  14,608    1,965   3,861       -  (56,730)
Provision
 (benefit) for
 income taxes      (26,791)       -        -       -   7,087  (19,704)
----------------- ----------------------------------------------------
Net loss          $(50,373)$ 14,608  $ 1,965 $ 3,861 $(7,087)$(37,026)
================= ====================================================

Basic and diluted
 loss per share    ($ 0.71)                                   ($ 0.52)
================= =========                                  =========

Basic and diluted
 weighted average
 shares
 outstanding        70,979                                     70,979
================= =========                                  =========

EBITDA:
Net loss          $(50,373)                                  $(37,026)
Provision
 (benefit) for
 income taxes      (26,791)                                   (19,704)
Interest income         (4)                                        (4)
Depreciation and
 amortization        6,695                                      6,695
                  ---------                                  ---------
EBITDA            $(70,473)                                  $(50,039)
Add: Business
 reorganization
 and related             -                                          -
                  ---------                                  ---------
Adjusted EBITDA   $(70,473)                                  $(50,039)
                  =========                                  =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                             Non-GAAP Reconciling Items
                        -------------------------------------
                                                             Non-GAAP
                 Six                                            six
                 months Business                              months
                ended   reorgani-Professional Stock-           ended
                 April   zation    fees and    based           April
                  30,     and       legal    compen-   Tax      30,
                 2007    related    matters   sation  effects  2007
               -------------------------------------------------------

Net revenue    $482,776 $      - $         - $     - $     - $482,776
--------------- ------------------------------------------------------

Cost of goods
 sold:
Product costs   269,822   (5,164)          -       -       -  264,658
Software
 development
 costs and
 royalties       93,985        -           -       -       -   93,985
--------------- ------------------------------------------------------
Total cost of
 goods sold     363,807   (5,164)          -       -       -  358,643
--------------- ------------------------------------------------------

Gross profit    118,969    5,164           -       -       -  124,133

 Selling and
  marketing      63,183        -           -    (619)      -   62,564
 General and
  admini-
  strative       79,085        -     (11,167) (4,100)      -   63,818
 Research and
  development    26,086        -           -  (2,256)      -   23,830
 Business
  reorgani-
  zation and
  related         8,962   (8,962)          -       -       -        -
 Impairment of
  long lived
  assets              -        -           -       -       -        -
 Depreciation
  and
  amortization   13,737        -           -       -       -   13,737
--------------- ------------------------------------------------------
Total operating
 expenses       191,053   (8,962)    (11,167) (6,975)      -  163,949
--------------- ------------------------------------------------------
Loss from
 operations     (72,084)  14,126      11,167   6,975       -  (39,816)
Interest income   1,884        -           -       -       -    1,884
--------------- ------------------------------------------------------
Loss before
 income taxes   (70,200)  14,126      11,167   6,975       -  (37,932)
Provision
 (benefit) for
 income taxes     2,597        -           -       -       -    2,597
--------------- ------------------------------------------------------
Net loss       $(72,797)$ 14,126 $    11,167 $ 6,975 $     - $(40,529)
=============== ======================================================

Basic and
 diluted loss
 per share      ($ 1.02)                                      ($ 0.57)
=============== ========                                     =========

Basic and
 diluted
 weighted
 average shares
 outstanding     71,548                                        71,548
=============== ========                                     =========

EBITDA:
Net loss       $(72,797)                                     $(40,529)
Provision
 (benefit) for
 income taxes     2,597                                         2,597
Interest income  (1,884)                                       (1,884)
Depreciation
 and
 amortization    13,737                                        13,737
                --------                                     ---------
EBITDA          (58,347)                                      (26,079)
Add: Business
 reorganization
 and related     14,126                                             -
                --------                                     ---------
Adjusted EBITDA$(44,221)                                     $(26,079)
                ========                                     =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                              Non-GAAP Reconciling Items
                          ----------------------------------
                           Asset   Severance
                            write-    and                   Non-GAAP
                            offs     other                     six
                Six months related  related  Stock-           months
                  ended       to      to     based            ended
                 April 30, studio   studio   compen-  Tax    April 30,
                   2006    closures closures sation  effects   2006
                ------------------------------------------------------

Net revenue     $ 530,103 $      - $      - $     - $     - $ 530,103
--------------- ------------------------------------------------------

Cost of goods
 sold:
Product costs     291,793     (253)       -       -       -   291,540
Software
 development
 costs and
 royalties        164,871  (11,913)       -       -       -   152,958
--------------- ------------------------------------------------------
Total cost of
 goods sold       456,664  (12,166)       -       -       -   444,498
--------------- ------------------------------------------------------

Gross profit       73,439   12,166        -       -       -    85,605

 Selling and
  marketing        73,838        -        -  (1,224)      -    72,614
 General and
  admini-
  strative         72,158        -     (372) (5,404)      -    66,382
 Research and
  development      33,806        -   (1,593) (2,066)      -    30,147
 Business
  reorgani-
  zation and
  related               -        -        -       -       -         -
 Impairment of
  long lived
  assets            6,249   (2,442)       -       -       -     3,807
 Depreciation
  and
  amortization     13,346        -        -       -       -    13,346
--------------- ------------------------------------------------------
Total operating
 expenses         199,397   (2,442)  (1,965) (8,694)      -   186,296
--------------- ------------------------------------------------------
Loss from
 operations      (125,958)  14,608    1,965   8,694       -  (100,691)
Interest income       257        -        -       -       -       257
--------------- ------------------------------------------------------
Loss before
 income taxes    (125,701)  14,608    1,965   8,694       -  (100,434)
Provision
 (benefit) for
 income taxes     (46,206)       -        -       -   9,298   (36,908)
--------------- ------------------------------------------------------
Net loss        $ (79,495)$ 14,608 $  1,965 $ 8,694 $(9,298)$ (63,526)
=============== ======================================================

Basic and
 diluted loss
 per share        ($ 1.12)                                    ($ 0.90)
=============== ==========                                  ==========
                        -                                           -
Basic and
 diluted
 weighted
 average shares
 outstanding       70,890                                      70,890
=============== ==========                                  ==========

EBITDA:
Net loss        $ (79,495)                                  $ (63,526)
Provision
 (benefit) for
 income taxes     (46,206)                                    (36,908)
Interest income      (257)                                       (257)
Depreciation
 and
 amortization      13,346                                      13,346
                ----------                                  ----------
EBITDA           (112,612)                                    (87,345)
Add: Business
 reorganization
 and related            -                                           -
                ----------                                  ----------
Adjusted EBITDA $(112,612)                                  $ (87,345)
                ==========                                  ==========

    CONTACT: Take-Two Interactive Software, Inc.
             Corporate Press/Investor Relations
             Meg Maise, 646-536-2932
             meg.maise@take2games.com

    SOURCE: Take-Two Interactive Software, Inc.