Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Third Quarter Fiscal 2007 Financial Results
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Provides Initial Guidance for Fiscal 2008

NEW YORK--(BUSINESS WIRE)--Sept. 10, 2007--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its third quarter and nine months ended July 31, 2007, which were in line with the Company's previously issued guidance.

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(R)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.)

Business Highlights

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(TM) video game and
        entertainment system from Microsoft and Games for Windows(R)
        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(TM), 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.

    Management Comments

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."

Year-to-Date Results

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.)

Financial Guidance

The Company is reiterating its previous guidance for the fourth quarter ending October 31, 2007, and providing initial guidance for the fiscal year ending October 31, 2008 as follows:

                                   Business
                                reorganization
                                  and other
                                   unusual     Stock-based
                     Non-GAAP    charges per   compensation
           Revenue*      EPS      share (a)     per share    GAAP EPS
           -----------------------------------------------------------
    Fourth
   quarter
    ending  $275 to  $(0.05) to                             $(0.20) to
10/31/2007      $300    $(0.10)    $(0.08)       $(0.08)       $(0.25)

    Fiscal
      year
    ending
10/31/2007  $950 to  $(1.30) to                             $(2.05) to
       (b)    $1,000    $(1.35)    $(0.61)       $(0.25)       $(2.10)

    Fiscal
      year
    ending
10/31/2008 $1,100 to  $1.30 to                               $0.80 to
       (c)    $1,400      $1.50    $(0.05)      $(0.45)(d)       $1.00
* Dollars in millions
(a) Business reorganization and other unusual charges include expenses
 related to Take-Two's management and board changes, restructuring
 expenses from the Company's cost savings initiatives, legal expenses
 and other professional fees associated with the stock options
 investigation and responses to the New York County District
 Attorney's subpoenas, and expenses related to other unusual legal
 matters.
(b) 2007 fiscal year EPS estimates reflect no tax benefit for losses.
(c) 2008 fiscal year EPS estimates reflect tax expense on
 international operations only.
(d) Includes estimated stock-based compensation expense for
 approximately 2 million stock options that are subject to variable
 accounting. Actual expense to be recorded in connection with these
 options is dependent upon several factors, including future changes
 in the Company's stock price.

Key assumptions and dependencies underlying the Company's guidance include continued consumer acceptance of the Xbox 360(TM) video game and entertainment system from Microsoft, PLAYSTATION(R)3 computer entertainment system and Wii(TM) home video game system from Nintendo; 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.

Product Pipeline

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

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

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

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

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

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(R) 2K8       Multiple platforms
Top Spin Tennis                    Wii
Sid Meier's Civilization(R)        Xbox 360, PS3, DS, Wii
 Revolution(TM)
Grand Theft Auto IV                Xbox 360, PS3
Top Spin 3                         Xbox 360, PS3
Grand Theft Auto IV episodic       Xbox 360
 content
NBA(R) 2K9                         Multiple platforms
NHL(R) 2K9                         Multiple platforms
Borderlands(TM)                    Xbox 360, PS3, Games for Windows(R)

Conference Call

Take-Two will host a conference call today at 5:00 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.

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

    --  Severance, relocation and other expenses outside of the
        Company's planned business reorganization initiatives,
        primarily related to certain studio closures in the 2006
        periods

    --  Charge recorded to income tax expense for a valuation
        allowance, reflecting the uncertain utilization of deferred
        tax assets

    --  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. Subsequently, the Company's former Chief Financial Officer resigned. As a result of these actions and the implementation of a business reorganization plan, the Company incurred significant costs in the three and nine months ended July 31, 2007 to reduce headcount, relocate employees and consolidate sales and operational functions. In addition, certain intellectual property was impaired and written off in the nine months ended July 31, 2007, based on a determination made by the newly appointed management team.

The Company expects that additional restructuring costs will be recorded in the fourth quarter of 2007 and into the 2008 fiscal year. Such costs are expected to relate to further 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 is to bring conclusion to its regulatory matters. The Company continues to incur substantial expenses for professional fees and has accrued for legal settlements that are outside its ordinary course of business. As a result, the Company has excluded such expenses from its non-GAAP financial measures.

Non-cash charges related to asset write-offs

In 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, acquired intangibles, goodwill and other assets based on management's assessment of the future value of these assets including future business prospects and estimated cash flows to be derived from them. These charges were recorded in depreciation and amortization expense and impairment of long lived assets.

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

Severance, relocation and other

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

Charge for Tax Valuation Allowance

In July 2006, the Company recorded income tax expense for a valuation allowance, to reflect the uncertain utilization of deferred tax assets relating to net operating losses carried forward from prior periods and deductible temporary differences. This charge represents the income tax impact of the Company's aggregate net operating losses and temporary differences existing at the beginning of the period.

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.

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 Games, 2K Sports and 2K Play; 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.

Microsoft, Xbox, Xbox 360, Xbox LIVE, and the Xbox logos are trademarks of the Microsoft group of companies.

"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 199X: 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 relating 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 shareholder 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 Annual Report on Form 10-K for the fiscal year ended October 31, 2006, and in the Company's Form 10-Q for the second quarter ended April 30, 2007 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 July 31, Nine months ended July 31,
                --------------------------- --------------------------
                    2007         2006          2007           2006
                ------------  -----------   -----------    -----------

Net revenue     $   206,415   $  241,181    $  689,191     $  771,284
--------------- ------------  -----------   -----------    -----------

Cost of goods
 sold:
Product costs       107,458      115,245       377,280        407,039
Software
 development
 costs and
 royalties           40,600       44,417        93,790        159,373
Internal
 royalties            3,536       10,313        17,890         30,556
Licenses             16,685       14,080        43,126         43,751
--------------- ------------  -----------   -----------    -----------
Total cost of
 goods sold         168,279      184,055       532,086        640,719
--------------- ------------  -----------   -----------    -----------

Gross profit         38,136       57,126       157,105        130,565

Selling and
 marketing           35,223       27,585        98,406        101,423
General and
 administrative      34,703       44,260       113,788        116,276
Research and
 development         11,210       17,406        37,296         51,212
Business
 reorganization
 and related          7,100            -        16,062              -
Impairment of
 long-lived
 assets                   -        8,529             -         14,778
Depreciation
 and
 amortization         7,006        6,290        20,743         19,778
--------------- ------------  -----------   -----------    -----------
Total operating
 expenses            95,242      104,070       286,295        303,467
--------------- ------------  -----------   -----------    -----------
Loss from
 operations         (57,106)     (46,944)     (129,190)      (172,902)
Interest income
 and other, net         748        1,199         2,632          1,456
--------------- ------------  -----------   -----------    -----------
Loss before
 income taxes       (56,358)     (45,745)     (126,558)      (171,446)
Provision
 (benefit) for
 income taxes         2,188       45,634         4,785           (572)
--------------- ------------  -----------   -----------    -----------
Net loss        $   (58,546)  $  (91,379)   $ (131,343)    $ (170,874)
=============== ============  ===========   ===========    ===========

Basic and
 diluted loss
 per share      $     (0.81)  $    (1.29)   $    (1.83)    $    (2.41)
=============== ============  ===========   ===========    ===========

Basic and
 diluted
 weighted
 average shares
 outstanding         72,075       71,095        71,714         70,954
============================  ===========   ===========    ===========


                Three months ended July 31, Nine months ended July 31,
                --------------------------- --------------------------
OTHER
 INFORMATION        2007         2006          2007           2006
--------------- ------------  -----------   -----------    -----------

Total revenue
 mix
Publishing               76%          80%           69%            71%
Distribution             24%          20%           31%            29%

Geographic
 revenue mix
North America            78%          64%           76%            70%
International            22%          36%           24%            30%

Publishing
 platform
 revenue mix
Microsoft Xbox
 360                     34%          24%           23%            25%
Sony
 PLAYSTATION 3           20%           0%           12%             0%
Sony
 PlayStation 2           18%          39%           31%            30%
PC                        8%          20%           11%            18%
Sony PSP                  7%           6%           13%            14%
Nintendo Wii              6%           0%            2%             0%
Accessories and
 other                    3%           3%            3%             4%
Nintendo
 Handhelds                3%           1%            2%             2%
Microsoft Xbox            1%           7%            3%             7%
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
                CONDENSED CONSOLIDATED BALANCE SHEETS
               (in thousands, except per share amounts)

                                               July 31,    October 31,
                                                 2007         2006
                                             ------------- -----------
                   ASSETS                     (Unaudited)
Current assets:
 Cash and cash equivalents                   $     61,625  $   132,480
 Accounts receivable, net of allowances of
  $66,371 and $91,509 at July 31, 2007 and
  October 31, 2006, respectively                  100,427      143,199
 Inventory, net                                    75,790       95,520
 Software development costs and licenses          126,750       85,207
 Prepaid taxes and taxes receivable                39,146       60,407
 Prepaid expenses and other                        32,223       28,060
-------------------------------------------- ------------- -----------
     Total current assets                         435,961      544,873
-------------------------------------------- ------------- -----------

 Fixed assets, net                                 46,223       47,496
 Software development costs and licenses,
  net of current portion                           33,088       31,354
 Goodwill                                         193,091      187,681
 Other intangibles, net                            33,409       43,248
 Other assets                                      16,541       14,154
-------------------------------------------- ------------- -----------
     Total assets                            $    758,313  $   868,806
============================================ ============= ===========

    LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                            $     93,305  $   123,947
 Accrued expenses and other current
  liabilities                                     134,567      128,282
 Deferred revenue                                  12,605       11,317
-------------------------------------------- ------------- -----------
     Total current liabilities                    240,477      263,546
-------------------------------------------- ------------- -----------
 Deferred revenue                                  50,000       50,000
 Line of credit                                    11,000            -
 Other long-term liabilities                        4,310        4,868
-------------------------------------------- ------------- -----------
     Total liabilities                            305,787      318,414
-------------------------------------------- ------------- -----------
Commitments and contingencies

Stockholders' equity:
 Common stock, $.01 par value, 100,000                740          727
  shares authorized; 73,987 and 72,745
  shares issued and outstanding at July 31,
  2007 and October 31, 2006, respectively
 Additional paid-in capital                       505,293      482,104
 Retained earnings (accumulated deficit)          (70,684)      60,659
 Accumulated other comprehensive income            17,177        6,902
-------------------------------------------- ------------- -----------
     Total stockholders' equity                   452,526      550,392
-------------------------------------------- ------------- -----------

-------------------------------------------- ------------- -----------
     Total liabilities and stockholders'
      equity                                 $    758,313  $   868,806
============================================ ============= ===========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
     CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
                            (in thousands)

                                            Nine months ended July 31,
                                            --------------------------
                                                2007          2006
                                            ------------  ------------
Operating activities:
 Net loss                                   $  (131,343)  $  (170,874)
 ------------------------------------------ ------------  ------------
 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                         88,806       129,317
  Depreciation and amortization of long-
   lived assets                                  20,743        19,778
  Impairment of long-lived assets                     -        14,778
  Stock-based compensation                       10,346        14,419
  Provision (benefit) for deferred income
   taxes                                           (159)       19,540
  Provision for price concessions, sales
   allowances and doubtful accounts              79,145       127,017
  Foreign currency transaction gain and
   other                                           (805)       (1,031)
 Changes in assets and liabilities, net of
  effect from purchases of businesses:
  Accounts receivable                           (30,872)      (25,351)
  Inventory                                      19,730        53,006
  Software development costs and licenses      (117,447)     (108,717)
  Prepaid expenses, other current and other
   non-current assets                            16,652       (35,955)
  Accounts payable, accrued expenses,
   deferred revenue and other liabilities       (27,551)       48,435
 ------------------------------------------ ------------  ------------
 Total adjustments                               58,588       255,236
 ------------------------------------------ ------------  ------------
 Net cash (used for) provided by operating
  activities                                    (72,755)       84,362
 ------------------------------------------ ------------  ------------

Investing activities:
 Purchase of fixed assets                       (16,629)      (18,600)
 Payments for purchases of businesses, net
  of cash acquired                                 (982)         (191)
 ------------------------------------------ ------------  ------------
 Net cash used for investing activities         (17,611)      (18,791)
 ------------------------------------------ ------------  ------------

Financing activities:
 Proceeds from exercise of stock options          5,501         2,787
 Borrowings on line of credit                    11,000             -
 Payment of debt issuance costs                  (1,764)            -
 Excess tax benefit on exercise of stock
  options                                             -           163
 ------------------------------------------ ------------  ------------
 Net cash provided by financing activities       14,737         2,950
 ------------------------------------------ ------------  ------------
 Effects of exchange rates on cash and cash
  equivalents                                     4,774         3,414
 ------------------------------------------ ------------  ------------
 Net (decrease) increase in cash and cash
  equivalents                                   (70,855)       71,935
 Cash and cash equivalents, beginning of
  year                                          132,480       107,195
 ------------------------------------------ ------------  ------------
 Cash and cash equivalents, end of period   $    61,625   $   179,130
 ========================================== ============  ============
         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    Business  Profess-                     three
                months  reorgani-  ional    Stock-            months
                ended    zation   fees and  based              ended
              July 31,    and      legal   compen-    Tax    July 31,
                2007     related   matters  sation   effects   2007
              --------------------------------------------------------

Net revenue   $206,415  $     -   $     -  $     -  $      - $206,415
------------- --------------------------------------------------------

Cost of goods
 sold:
Product costs  107,458        -         -        -         -  107,458
Software
 development
 costs and
 royalties      40,600        -         -        -         -   40,600
Internal
 royalties       3,536        -         -        -         -    3,536
Licenses        16,685        -         -        -         -   16,685
------------- --------------------------------------------------------
Total cost of
 goods sold    168,279        -         -        -         -  168,279
------------- --------------------------------------------------------

Gross profit    38,136        -         -        -         -   38,136

Selling and
 marketing      35,223        -         -     (260)        -   34,963
General and
 administra-
 tive           34,703        -    (4,013)    (344)        -   30,346
Research and
 development    11,210        -         -     (722)        -   10,488
Business
 reorgani-
 zation and
 related         7,100   (7,100)        -        -         -        -
Impairment of
 long lived
 assets              -        -         -        -         -        -
Depreciation
 and
 amortization    7,006        -         -        -         -    7,006
------------- --------------------------------------------------------
Total
 operating
 expenses       95,242   (7,100)   (4,013)  (1,326)        -   82,803
------------- --------------------------------------------------------
Loss from
 operations    (57,106)   7,100     4,013    1,326         -  (44,667)
Interest
 income and
 other, net        748        -         -        -         -      748
------------- --------------------------------------------------------
Loss before
 income taxes  (56,358)   7,100     4,013    1,326         -  (43,919)
Provision
 (benefit)
 for income
 taxes           2,188        -         -        -         -    2,188
------------- --------------------------------------------------------
Net loss      $(58,546) $ 7,100   $ 4,013  $ 1,326  $      - $(46,107)
============= =-------------------------------------------------------

Basic and
 diluted loss
 per share    $  (0.81)                                      $  (0.64)
============= =========                                      =========

Basic and
 diluted
 weighted
 average
 shares
 outstanding    72,075                                         72,075
=======================                                      =========

EBITDA:
Loss before
 income taxes $(56,358)                                      $(43,919)
Interest
 income           (447)                                          (447)
Depreciation
 and
 amortization    7,006                                          7,006
              ---------                                      ---------
EBITDA        $(49,799)                                      $(37,360)
Add: Business
 reorgani-
 zation and
 related         7,100                                              -
              ---------                                      ---------
Adjusted
 EBITDA       $(42,699)                                      $(37,360)
              =========                                      =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                               Non-GAAP Reconciling Items
                      --------------------------------------------
              Three    Asset  Severance,Profess-   Stock-      Tax
              months   impair-  reloc-   ional     based      effects
               ended   ments  ation and   fees   compensation
              July 31,  and      other    and
                2006   write-            legal
                        offs             matters
             ---------------------------------------------------------

Net revenue  $241,181 $     -   $     - $     -      $     - $     -
------------ ---------------------------------------------------------

Cost of
 goods sold:
Product
 costs        115,245    (875)        -       -            -       -
Software
 devel-
opment costs
 and
 royalties     44,417       -         -       -            -       -
Internal
 royalties     10,313       -         -       -            -       -
Licenses       14,080       -         -       -            -       -
------------ ---------------------------------------------------------
Total cost
 of goods
 sold         184,055    (875)        -       -            -       -
------------ ---------------------------------------------------------

Gross profit   57,126     875         -       -            -       -

Selling and
 marketing     27,585       -         -       -          282       -
General and
 admin-
istrative      44,260       -    (2,255) (1,406)      (4,694)      -
Research and
 devel-
opment         17,406       -    (1,663)      -       (1,347)      -
Business
 reorgan-
ization and
 related            -       -         -       -            -       -
Impairment
 of long
 lived
 assets         8,529  (8,529)        -       -            -       -
Deprec-
iation and
 amort-
ization         6,290       -         -       -            -       -
------------ ---------------------------------------------------------
Total
 operating
 expenses     104,070  (8,529)   (3,918) (1,406)      (5,759)      -
------------ ---------------------------------------------------------
Loss from
 operations   (46,944)  9,404     3,918   1,406        5,759       -
Interest
 income and
 other, net     1,199       -         -       -            -       -
------------ ---------------------------------------------------------
Loss before
 income
 taxes        (45,745)  9,404     3,918   1,406        5,759       -
Provision
 (benefit)
 for income
 taxes         45,634       -         -       -            -   7,973
------------ ---------------------------------------------------------
Net loss     $(91,379)$ 9,404   $ 3,918 $ 1,406      $ 5,759 $(7,973)
============ =========================================================

Basic and
 diluted
 loss per
 share       $  (1.29)
============ =========

Basic and
 diluted
 weighted
 average
 shares out-
standing       71,095
======================

EBITDA:
Loss before
 income
 taxes       $(45,745)
Interest
 income        (1,199)
Deprec-
iation and
 amort-
ization         6,290
             ---------
EBITDA       $(40,654)
Add:
 Business
 reorgan-
ization and
 related            -
             ---------
Adjusted
 EBITDA      $(40,654)
             =========


                                                  Non-GAAP
                                                  Reconciling
                                                     Items
                                                 ------------
                                                  Charge for Non-GAAP
                                                      tax      three
                                                   valuation  months
                                                   allowance   ended
                                                              July 31,
                                                                2006
                                                 ---------------------

Net revenue                                       $        - $241,181
----------------------------------------------------------------------

Cost of goods sold:
Product costs                                              -  114,370
Software devel-
opment costs and royalties                                 -   44,417
Internal royalties                                         -   10,313
Licenses                                                   -   14,080
----------------------------------------------------------------------
Total cost of goods sold                                   -  183,180
----------------------------------------------------------------------

Gross profit                                               -   58,001

Selling and marketing                                      -   27,867
General and admin-
istrative                                                  -   35,905
Research and devel-
opment                                                     -   14,396
Business reorgan-
ization and related                                        -        -
Impairment of long lived assets                            -        -
Deprec-
iation and amort-
ization                                                    -    6,290
----------------------------------------------------------------------
Total operating expenses                                   -   84,458
----------------------------------------------------------------------
Loss from operations                                       -  (26,457)
Interest income and other, net                             -    1,199
----------------------------------------------------------------------
Loss before income taxes                                   -  (25,258)
Provision (benefit) for income taxes                 (59,469)  (5,862)
----------------------------------------------------------------------
Net loss                                          $   59,469 $(19,396)
======================================================================

Basic and diluted loss per share                             $  (0.27)
=================================================            =========

Basic and diluted weighted average shares out-
standing                                                       71,095
=================================================            =========

EBITDA:
Loss before income taxes                                     $(25,258)
Interest income                                                (1,199)
Deprec-
iation and amort-
ization                                                         6,290
                                                             ---------
EBITDA                                                       $(20,167)
Add: Business reorgan-
ization and related                                                 -
                                                             ---------
Adjusted EBITDA                                              $(20,167)
                                                             =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)

                            Non-GAAP Reconciling Items
                      --------------------------------------
                      Business    Pro-                       Non-GAAP
             Nine        re-      fess-                         nine
             months   organiza-   ional   Stock-              months
           ended July   tion    fees and   based               ended
               31,      and      legal    compensa-   Tax     July 31,
              2007     related   matters  tion       effects   2007
           -----------------------------------------------------------


Net
 revenue   $  689,191 $      -  $       - $       - $      - $ 689,191
---------- -----------------------------------------------------------

Cost of
 goods
 sold:
Product
 costs        377,280   (5,164)         -         -        -   372,116
Software
 develop-
 ment
 costs
 and
 royalties     93,790        -          -         -        -    93,790
Internal
 royalties     17,890                                           17,890
Licenses       43,126        -          -         -        -    43,126
---------- -----------------------------------------------------------
Total cost
 of goods
 sold         532,086   (5,164)         -         -        -   526,922
---------- -----------------------------------------------------------

Gross
 profit       157,105    5,164          -         -        -   162,269

Selling
 and
 marketing     98,406        -          -     (879)        -    97,527
General
 and
 ad-
 ministra-
 tive         113,788        -   (15,180)   (4,444)        -    94,164
Research
 and
 develop-
 ment          37,296        -          -   (2,978)        -    34,318
Business
 re-
 organiza-
 tion and
 related       16,062  (16,062)         -         -        -         -
Impairment
 of long
 lived
 assets             -        -          -         -        -         -
Deprecia-
 tion and
 amortiza-
 tion          20,743        -          -         -        -    20,743
---------- -----------------------------------------------------------
Total
 opera-
 ting
  expenses    286,295  (16,062)  (15,180)   (8,301)        -   246,752
---------- -----------------------------------------------------------
Loss from
 opera-
 tions      (129,190)   21,226     15,180     8,301        -  (84,483)
Interest
 income
 and
 other,
 net            2,632        -          -         -        -     2,632
---------- -----------------------------------------------------------
Loss
 before
 income
 taxes      (126,558)   21,226     15,180     8,301        -  (81,851)
Provision
 (benefit)
 for
 income
 taxes          4,785        -          -         -        -     4,785
---------- ---------- --------- --------- --------- -------- ---------
Net loss   $(131,343) $ 21,226  $  15,180 $   8,301 $      - $(86,636)
========== =----------------------------------------------------------

Basic and
 diluted
 loss per
 share     $   (1.83)                                        $  (1.21)
========== ==========                                        =========

Basic and
 diluted
 weighted
 average
 shares
 outstand-
 ing           71,714                                           71,714
========== ==========                                        =========

EBITDA:
Loss
 before
 income
 taxes     $(126,558)                                        $(81,851)
Interest
 income       (2,570)                                          (2,570)
Deprecia-
 tion and
 amortiza-
 tion          20,743                                           20,743
           ----------                                        ---------
EBITDA      (108,385)                                         (63,678)
Add:
 Business
 re-
 organiza-
 tion and
 related       21,226                                                -
           ----------                                        ---------
Adjusted
 EBITDA    $ (87,159)                                        $(63,678)
           ==========                                        =========
         TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES
      CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited)
               (in thousands, except per share amounts)


                                  Non-GAAP Reconciling Items
                        ----------------------------------------------
                Nine     Asset   Severance,Profess- Stock-    Tax
                months   impair-   reloc-   ional   based    effects
                ended   ments andation and   fees   compen-
               July 31,   write-    other    and    sation
                 2006      offs             legal
                                            matters
              --------------------------------------------------------

Net revenue   $ 771,284 $      -   $     - $     - $      - $      -
------------- --------------------------------------------------------

Cost of goods
 sold:
Product costs   407,039   (1,128)        -       -        -        -
Software
 devel-
opment costs
 and royal-
ties            159,373  (11,913)        -       -        -        -
Internal
 royalties       30,556        -         -       -        -        -
Licenses         43,751        -         -       -        -        -
------------- --------------------------------------------------------
Total cost of
 goods sold     640,719  (13,041)        -       -        -        -
------------- --------------------------------------------------------

Gross profit    130,565   13,041         -       -        -        -

Selling and
 marketing      101,423        -         -       -     (942)       -
General and
 admini-
strative        116,276        -    (2,627) (1,406) (10,064)       -
Research and
 devel-
opment           51,212        -    (3,256)      -   (3,413)       -
Business
 reorgan-
ization and
 related              -        -         -       -        -        -
Impairment of
 long lived
 assets          14,778  (10,971)        -       -        -        -
Deprec-
iation and
 amort-
ization          19,778        -         -       -        -        -
------------- --------------------------------------------------------
Total
 operating
 expenses       303,467  (10,971)   (5,883) (1,406) (14,419)       -
------------- --------------------------------------------------------
Loss from
 oper-
ations         (172,902)  24,012     5,883   1,406   14,419        -
Interest
 income and
 other, net       1,456        -         -       -        -        -
------------- --------------------------------------------------------
Loss before
 income taxes  (171,446)  24,012     5,883   1,406   14,419        -
Provision
 (benefit)
 for income
 taxes             (572)       -         -       -        -   17,271
------------- --------------------------------------------------------
Net loss      $(170,874)$ 24,012   $ 5,883 $ 1,406 $ 14,419 $(17,271)
============= ========================================================

Basic and
 diluted loss
 per share    $   (2.41)
============= ==========
                      -
Basic and
 diluted
 weighted
 average
 shares out-
standing         70,954
============= ==========

EBITDA:
Loss before
 income taxes $(171,446)
Interest
 income          (1,456)
Deprec-
iation and
 amort-
ization          19,778
              ----------
EBITDA         (153,124)
Add: Business
 reorgan-
ization and
 related              -
              ----------
Adjusted
 EBITDA       $(153,124)
              ==========


                                                 Non-GAAP
                                                 Reconciling
                                                    Items
                                                ------------
                                                 Charge for Non-GAAP
                                                     tax       nine
                                                  valuation   months
                                                  allowance   ended
                                                             July 31,
                                                               2006
                                                ----------------------

Net revenue                                      $        - $ 771,284
----------------------------------------------------------------------

Cost of goods sold:
Product costs                                             -   405,911
Software devel-
opment costs and royal-
ties                                                      -   147,460
Internal royalties                                        -    30,556
Licenses                                                  -    43,751
----------------------------------------------------------------------
Total cost of goods sold                                  -   627,678
----------------------------------------------------------------------

Gross profit                                              -   143,606

Selling and marketing                                     -   100,481
General and admini-
strative                                                  -   102,179
Research and devel-
opment                                                    -    44,543
Business reorgan-
ization and related                                       -         -
Impairment of long lived assets                           -     3,807
Deprec-
iation and amort-
ization                                                   -    19,778
----------------------------------------------------------------------
Total operating expenses                                  -   270,788
----------------------------------------------------------------------
Loss from oper-
ations                                                    -  (127,182)
Interest income and other, net                            -     1,456
----------------------------------------------------------------------
Loss before income taxes                                  -  (125,726)
Provision (benefit) for income taxes                (59,469)  (42,770)
----------------------------------------------------------------------
Net loss                                         $   59,469 $ (82,956)
======================================================================

Basic and diluted loss per share                            $   (1.17)
================================================            ==========
                                                                    -
Basic and diluted weighted average shares out-
standing                                                       70,954
================================================            ==========

EBITDA:
Loss before income taxes                                    $(125,726)
Interest income                                                (1,456)
Deprec-
iation and amort-
ization                                                        19,778
                                                            ----------
EBITDA                                                       (107,404)
Add: Business reorgan-
ization and related                                                 -
                                                            ----------
Adjusted EBITDA                                             $(107,404)
                                                            ==========

    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.