Take-Two News Release

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Take-Two Interactive Software, Inc. Reports Fourth Quarter Fiscal 2008 Financial Results
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Company achieves record revenue and net income for fiscal year 2008

Signs new long-term agreements with Rockstar Games' senior creative talent

Provides initial guidance for first quarter and fiscal 2009

NEW YORK--(BUSINESS WIRE)--Dec. 17, 2008--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced financial results for its fourth quarter and fiscal year ended October 31, 2008.

Net revenue for the fourth quarter was $323.4 million, compared to $292.6 million for the same period of fiscal 2007. Fourth quarter sales were led by Midnight Club: Los Angeles, NBA 2K9, Grand Theft Auto IV and Carnival Games titles. Distribution revenue rose year over year, as current generation hardware sales were fueled by the strength of new frontline titles, along with robust demand for Wii software.

Net loss for the fourth quarter was $15.0 million or $0.20 per share, compared to a net loss of $7.1 million or $0.10 per share in the fourth quarter of fiscal 2007.

The fourth quarter 2008 results include $9.3 million in stock-based compensation expense ($0.12 per share); $5.6 million in professional fees and expenses related to unusual legal matters ($0.07 per share); and $1.6 million in business reorganization costs ($0.02 per share). Results for the fourth quarter of 2007 included $4.8 million in stock-based compensation expense ($0.06 per share); $4.5 million in business reorganization costs ($0.06 per share); and $1.5 million in professional fees and expenses related to unusual legal matters ($0.02 per share).

Non-GAAP net income was $1.6 million or $0.02 per share in the fourth quarter of 2008, compared to $3.4 million or $0.05 per share in the fourth quarter of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on Non-GAAP items.)

Fiscal Year 2008 Results

Net revenues were a record $1,537.5 million for the fiscal year ended October 31, 2008, compared to $981.8 million in fiscal 2007. Net income for fiscal 2008 was a record $97.1 million or $1.28 per share, compared to a net loss of $138.4 million or $1.93 per share in fiscal 2007.

Fiscal 2008 results include $40.4 million in stock-based compensation expense ($0.53 per share); $16.2 million in professional fees and expenses related to unusual legal matters ($0.21 per share); and $4.5 million in business reorganization costs ($0.06 per share). Results for fiscal 2007 included $17.3 million in stock-based compensation expense ($0.24 per share); $23.6 million in business reorganization costs ($0.32 per share); and $16.7 million in professional fees and expenses related to unusual legal matters ($0.23 per share).

Non-GAAP net income was a record $158.2 million or $2.08 per share in fiscal 2008, versus a net loss of $81.0 million or $1.13 per share in the comparable period of 2007. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on Non-GAAP items.)

Business Highlights

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

    --  The Company entered into new long-term agreements with Rockstar Games'
        senior creative talent which extend to January 31, 2012.
    --  Grand Theft Auto IV won Game of the Year and Best Action Adventure Game
        at the 2008 Spike TV Video Game Awards on December 14.
    --  2K Play's wholly owned Carnival Games(TM)franchise, including Carnival
        Gamesfor Nintendo's Wii(TM) and DS(TM), and Carnival Games(TM)MiniGolf
        for Wii, has shipped over three million units worldwide.
    --  The Company entered into an outsourcing agreement with Ditan
        Distribution for the pick, pack, ship and warehousing functions for
        Take-Two's U.S. publishing and distribution businesses previously
        handled by Take-Two's Jack of All Games subsidiary.

"Take-Two's record results for the 2008 fiscal year reflect the fundamental strength of our business model," said Strauss Zelnick, Chairman of Take-Two. "Our performance has benefited from the strategies we've implemented during the past 18 months to unlock the potential of our creative talent, sharpen our focus on the core business, and take costs out of our operations. We've also signed new agreements with the senior members of the Rockstar Games label, a team that has produced some of the industry's most extraordinary hits. These actions were taken in the interest of creating long-term shareholder value, and we believe they have also better positioned the Company to weather an increasingly challenging economic climate."

Ben Feder, Chief Executive Officer of Take-Two, commented, "While our initial guidance provided today is a prudent response to the difficult current and possible future business conditions, we continue to maintain our strategy of developing a select portfolio of AAA titles. We believe one of the keys to long-term success in our industry is to offer truly outstanding products and a great entertainment experience. We're excited about our 2009 pipeline, which will include the introduction of Grand Theft Auto: Chinatown Wars on the Nintendo DS, episodic content for Grand Theft Auto IV on the Xbox 360 and downloadable content for Midnight Club: Los Angeles, as well as new offerings from such powerful franchises as BioShock, Mafia and the 2K Sports roster. We'll also continue to invest in initiatives to achieve scale and create new revenue opportunities, while running a disciplined and cost-effective operation."

Financial Guidance

The Company is providing initial guidance for the first quarter ending January 31, 2009, and for the fiscal year ending October 31, 2009 as follows:


                        Revenue*          Non-GAAP EPS (a)(b)

First quarter ending
                        $175 to $225      $(0.70) to $(0.85)
1/31/2009

Fiscal year ending
                        $1,100 to $1,250  $0.00 to $0.20
10/31/2009




* Dollars in millions

(a) The Company's non-GAAP EPS estimates for the first quarter ending January
31, 2009 and fiscal year ending October 31, 2009 exclude approximately $0.14 and
$0.52 per share, respectively, of stock-based compensation expense; and
approximately $0.01 and $0.05 per share, respectively, of expenses related to
unusual legal matters. The Company's stock-based compensation expense for the
first quarter and fiscal 2009 reflects the cost of approximately 2 million stock
options and 1.5 million shares issued to ZelnickMedia that are subject to
variable accounting. Actual expense to be recorded in connection with these
options and shares is dependent upon several factors, including future changes
in Take-Two's stock price.

(b) Q1 and fiscal year 2009 EPS estimates reflect tax expense primarily due to
international operations.



Key assumptions and dependencies underlying the Company's guidance include continued consumer acceptance of the Xbox 360(R) 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 current generation systems while continuing to leverage opportunities on certain prior generation platforms; as well as the timely delivery of titles.

Product Pipeline

The following titles shipped during the first quarter of 2009:


Title                                             Platform

Dora the Explorer: Dora Saves the Snow Princess   DS

Grand Theft Auto IV                               PC

MLB(R) Superstars                                 Wii



Take-Two's lineup announced to date for the remainder of fiscal 2009 includes the following announced titles:


Title                                      Platform

BioShock(R) 2                              TBA

Borderlands(TM)                            Xbox 360, PS3, Games for Windows(R)

Don King Boxing                            Wii, DS

Grand Theft Auto: Chinatown Wars           DS

Grand Theft Auto IV: The Lost and Damned   Xbox 360

Grand Theft Auto IV Episodic Content       Xbox 360

Mafia II                                   Xbox 360, PS3, Games for Windows

Major League Baseball(R) 2K9               Multiple platforms

Midnight Club: Los Angeles Downloadable

Content - South Central Content Pack       Xbox 360, PS3

MLB(R) Front Office Manager                Xbox 360, PS3, Games for Windows

NBA(R) 2K10                                Multiple platforms

NHL(R) 2K10                                Multiple platforms



Conference Call

Take-Two will host a conference call today at 4:30 p.m. 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), the Company uses non-GAAP measures of financial performance that exclude certain non-recurring or non-cash items. Non-GAAP gross profit, income (loss) from operations, net income (loss) and earnings (loss) 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. They 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, restructuring and related expenses
    --  Stock-based compensation
    --  Professional fees and expenses associated with unusual legal and other
        matters, including the Company's recently completed strategic review
        process
    --  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. Therefore, the Company believes it is appropriate to exclude certain items as follows:

Business reorganization, restructuring and related 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 fiscal years ended October 31, 2007 and October 31, 2008 to reduce headcount, relocate employees and consolidate sales and operational functions. These costs were related to severance, asset write-offs and associated professional fees. As of October 31, 2008, the Company had substantially concluded the reorganization plan.

The Company does not engage in reorganization activities on a regular basis and therefore believes it is appropriate to exclude business reorganization expenses from its non-GAAP financial measures.

Stock-based compensation

The Company does not consider stock-based compensation charges when evaluating business performance and management does not contemplate stock-based compensation expense in its short and long-term operating plans. The Company places greater emphasis on stockholder dilution than accounting charges when assessing the impact of stock-based equity awards.

Professional fees and expenses associated with unusual legal and other matters, including the Company's recently concluded strategic review process

The Company incurred significant legal, consulting and investment banking expenses in the fiscal year ended October 31, 2008 related to the tender offer by Electronic Arts Inc. to acquire all of the Company's outstanding shares, which was launched in March 2008 and expired in August 2008, and the Company's related strategic review process which was completed in October 2008. Additionally, the Company has realized significant legal and other professional fees associated with both the investigation of its historical stock option granting process and the Company's responses to related governmental inquiries and civil lawsuits. One of management's primary objectives is to bring conclusion to its outstanding legal matters. The Company continues to incur 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.

EBITDA and Adjusted EBITDA

Earnings (loss) before interest, taxes, depreciation and amortization ("EBITDA") is a financial measure not calculated and presented in accordance with U.S. GAAP. 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 from, or as a substitute for, net income/(loss) prepared in accordance with GAAP.

Reclassifications

Certain prior year amounts have been reclassified to conform to current year presentation.

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)3 and PlayStation(R)2 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox 360(R) video game and entertainment system from Microsoft, Wii(TM) and Nintendo DS(TM). 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 and are used under license from Microsoft.

"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).

Wii and Nintendo DS are trademarks of Nintendo.

Important Legal Information

This press release may contain 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 current beliefs of our management as well as assumptions made by and information currently available to them. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include our dependence on key management and product development personnel, our dependence on Grand Theft Auto and our ability to develop other hit titles for current generation platforms, the timely release and significant market acceptance of our games, the realization of the anticipated benefits from our recent business reorganization, our ability to raise capital if needed, risks associated with international operations, the matters relating to the Special Committee's investigation of the Company's stock option grants and the claims and proceedings relating thereto (including stockholder and derivative litigation, actions by the SEC and/or other governmental agencies and negative tax or other implications for the Company resulting from any accounting adjustments or other factors) and risks associated with the Company's concluded process to evaluate its strategic alternatives including stockholder litigation arising therefrom. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2007, in the section entitled "Risk Factors," as updated in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008, in the section entitled "Risk Factors," and can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. This communication does not constitute an offer to sell or invitation to purchase any securities or the solicitation of an offer to buy any securities.


TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share amounts)

                 Three months ended October 31,  For the Years Ended October 31,

                 2008         2007               2008           2007

Net revenue      $ 323,442    $ 292,600          $ 1,537,530    $ 981,791

Cost of goods
sold:

Product costs      146,422      133,808            633,979        511,088

Software
development        43,276       42,695             169,398        136,485
costs and
royalties

Internal           18,003       11,002             128,772        28,892
royalties

Licenses           17,071       15,443             56,546         58,569

Total cost of      224,772      202,948            988,695        735,034
goods sold

Gross profit       98,670       89,652             548,835        246,757

Selling and        44,846       32,246             167,380        130,652
marketing

General and        44,524       36,223             171,440        150,432
administrative

Research and       16,052       11,159             63,929         48,455
development

Business
reorganization     1,601        1,405              4,478          17,467
and related

Depreciation
and                5,629        6,706              25,755         27,449
amortization

Total operating    112,652      87,739             432,982        374,455
expenses

Income (loss)      (13,982 )    1,913              115,853        (127,698 )
from operations

Loss on sale
and                -            (4,469  )          -              (4,469   )
deconsolidation
(1)

Interest and
other income       (2,845  )    899                (3,710    )    3,952
(expense), net

Income (loss)
before income      (16,827 )    (1,657  )          112,143        (128,215 )
taxes

Income taxes       (1,873  )    5,406              15,046         10,191

Net income       $ (14,954 )  $ (7,063  )        $ 97,097       $ (138,406 )
(loss)

Earnings (loss)
per share:

Basic            $ (0.20   )  $ (0.10   )        $ 1.29         $ (1.93    )

Diluted          $ (0.20   )  $ (0.10   )        $ 1.28         $ (1.93    )

Weighted
average shares
outstanding:

Basic              76,046       72,321             75,039         71,860

Diluted            76,046       72,321             75,943         71,860




                        Three months ended October  For the Years Ended October
                        31,                         31,

OTHER INFORMATION       2008  2007                  2008  2007

Total revenue mix

Publishing              75%   75%                   80%   70%

Distribution            25%   25%                   20%   30%

Geographic revenue mix

North America           65%   74%                   65%   75%

International           35%   26%                   35%   25%

Publishing revenue
platform mix

Sony PLAYSTATION 3      35%   5%                    34%   10%

Microsoft Xbox 360      28%   44%                   39%   30%

Nintendo Wii            13%   11%                   9%    5%

Sony PlayStation 2      8%    14%                   8%    26%

Sony PSP                7%    4%                    5%    10%

PC                      5%    19%                   3%    14%

Nintendo Handhelds      4%    1%                    2%    1%

Other                   0%    2%                    0%    4%

(1) Reflects $3,080 loss on the sale of Joytech, a video game accessories
company; and $1,389 loss on the deconsolidation of Blue Castle Games, Inc.,
which previously was accounted for as a wholly owned subsidiary in accordance
with FIN 46(R).




TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except per share amounts)

                                                     October 31,

                                                       2008           2007

ASSETS

Current assets:

Cash and cash equivalents                            $ 280,277      $ 77,757

Accounts receivable, net of allowances of $68,448
and $63,324 at October 31, 2008 and

October 31, 2007, respectively                         157,458        104,937

Inventory                                              104,235        99,331

Software development costs and licenses                113,436        141,441

Prepaid taxes and taxes receivable                     23,763         40,316

Prepaid expenses and other                             44,605         34,741

Total current assets                                   723,774        498,523

Fixed assets, net                                      32,361         44,986

Software development costs and licenses, net of        61,991         34,465
current portion

Goodwill                                               230,809        204,845

Other intangibles, net                                 26,123         31,264

Other assets                                           8,294          17,060

Total assets                                         $ 1,083,352    $ 831,143

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable                                     $ 156,167      $ 128,782

Accrued expenses and other current liabilities         153,089        146,835

Deferred revenue                                       56,163         36,544

Total current liabilities                              365,419        312,161

Deferred revenue                                       -              25,000

Line of credit                                         70,000         18,000

Income taxes payable                                   26,399         -

Other long-term liabilities                            6,416          4,828

Total liabilities                                      468,234        359,989

Commitments and contingencies

Stockholders' equity:

Common stock, $.01 par value, 100,000 shares
authorized; 77,694 and 74,273 shares issued

and outstanding at October 31, 2008 and October 31,  777            743
2007, respectively

Additional paid-in capital                             603,579        513,297

Retained earnings (accumulated deficit)                18,275         (77,747 )

Accumulated other comprehensive (loss) income          (7,513    )    34,861

Total stockholders' equity                             615,118        471,154

Total liabilities and stockholders' equity           $ 1,083,352    $ 831,143




TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

                                                For the Years Ended October 31,

                                                  2008          2007

Operating activities:

 Net income (loss)                              $ 97,097      $ (138,406 )

 Adjustments to reconcile net income (loss) to
 net cash provided by (used for) operating
 activities:

  Amortization and write-off of software          146,102       106,675
  development costs and licenses

  Depreciation and amortization of long-lived     25,755        27,449
  assets

  Amortization and write-off of intellectual      2,350         8,626
  property

  Stock-based compensation                        40,387        17,329

  Benefit for deferred income taxes               (391     )    (1,718   )

  Loss on disposal of fixed assets                1,306         -

  Foreign currency transaction loss (gain) and    5,659         (1,656   )
  other

  (Gain) loss on sale and deconsolidation         (277     )    4,469

 Changes in assets and liabilities, net of
 effect from purchases and disposal of
 businesses:

  Accounts receivable, net                        (52,421  )    39,159

  Inventory                                       (4,904   )    (10,203  )

  Software development costs and licenses         (157,076 )    (160,643 )

  Prepaid expenses, other current and other       16,831        18,270
  non-current assets

  Accounts payable, accrued expenses, deferred    31,008        26,604
  revenue and other liabilities

 Total adjustments                                54,329        74,361

 Net cash provided by (used for) operating        151,426       (64,045  )
 activities

Investing activities:

 Purchase of fixed assets                         (12,277  )    (21,594  )

 Cash received from sale of business              3,000         2,778

 Payments for purchases of businesses, net of     (7,503   )    (5,795   )
 cash acquired

 Net cash used for investing activities           (16,780  )    (24,611  )

Financing activities:

 Proceeds from exercise of options                25,962        9,503

 Borrowings on line of credit                     135,000       18,000

 Payments on line of credit                       (83,000  )    -

 Payment of debt issuance costs                   (962     )    (1,809   )

 Net cash provided by financing activities        77,000        25,694

 Effects of exchange rates on cash and cash       (9,126   )    8,239
 equivalents

 Net increase (decrease) in cash and cash         202,520       (54,723  )
 equivalents

 Cash and cash equivalents, beginning of year     77,757        132,480

 Cash and cash equivalents, end of year         $ 280,277     $ 77,757





TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

                              Non-GAAP Reconciling Items

                Three         Business         Professional                  Non-GAAP
                months                                                       three

                ended                                                        months
                October 31,   reorganization   fees and       Stock-based    ended
                                                                             October 31,

                2008          and related      legal          compensation   2008
                                               matters

Net revenue     $ 323,442     $ -              $ -            $ -            $ 323,442

Cost of goods
sold:

Product costs     146,422       -                -              -              146,422

Software
development       43,276        -                -              (2,863 )       40,413
costs and
royalties

Internal          18,003        -                -              -              18,003
royalties

Licenses          17,071        -                -              -              17,071

Total cost of     224,772       -                -              (2,863 )       221,909
goods sold

Gross profit      98,670        -                -              2,863          101,533

Selling and       44,846        -                -              (444   )       44,402
marketing

General and       44,524        -                (5,589 )       (4,804 )       34,131
administrative

Research and      16,052        -                -              (1,214 )       14,838
development

Business
reorganization    1,601         (1,601 )         -              -              -
and related

Depreciation
and               5,629         -                -              -              5,629
amortization

Total
operating         112,652       (1,601 )         (5,589 )       (6,462 )       99,000
expenses

Income (loss)
from              (13,982 )     1,601            5,589          9,325          2,533
operations

Interest and
other expense,    (2,845  )     -                -              -              (2,845  )
net

Loss before       (16,827 )     1,601            5,589          9,325          (312    )
income taxes

Income taxes      (1,873  )     -                -              -              (1,873  )

Net income      $ (14,954 )   $ 1,601          $ 5,589        $ 9,325        $ 1,561
(loss)

Earnings
(loss) per
share:*

Basic           $ (0.20   )   $ 0.02           $ 0.07         $ 0.12         $ 0.02

Diluted         $ (0.20   )   $ 0.02           $ 0.07         $ 0.12         $ 0.02

Weighted
average shares
outstanding

Basic             76,046                                                       76,046

Diluted           76,046                                                       76,903

EBITDA:

Loss before     $ (16,827 )                                                  $ (312    )
income taxes

Interest          (1,159  )                                                    (1,159  )

Depreciation
and               5,629                                                        5,629
amortization

EBITDA          $ (12,357 )                                                  $ 4,158

Add: Business
reorganization    1,601                                                        -
and related

Adjusted        $ (10,756 )                                                  $ 4,158
EBITDA

*Basic and diluted earnings (loss) per share may not add due to rounding





TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

                               Non-GAAP Reconciling Items

                 Three         Business         Professional                  Non-GAAP
                 months                                                       three

                 ended                                                        months
                 October 31,   reorganization   fees and       Stock-based    ended
                                                                              October 31,

                 2007          and related      legal          compensation   2007
                                                matters

Net revenue      $ 292,600     $ -              $ -            $ -            $ 292,600

Cost of goods
sold:

Product costs      133,808       -                -              -              133,808

Software
development        42,695        -                -              (1,008 )       41,687
costs and
royalties

Internal           11,002        -                -              -              11,002
royalties

Licenses           15,443        -                -              -              15,443

Total cost of      202,948       -                -              (1,008 )       201,940
goods sold

Gross profit       89,652        -                -              1,008          90,660

Selling and        32,246        -                -              (353   )       31,893
marketing

General and        36,223        -                (1,546 )       (2,636 )       32,041
administrative

Research and       11,159        -                -              (757   )       10,402
development

Business
reorganization     1,405         (1,405 )         -              -              -
and related

Depreciation
and                6,706         -                -              -              6,706
amortization

Total operating    87,739        (1,405 )         (1,546 )       (3,746 )       81,042
expenses

Income from        1,913         1,405            1,546          4,754          9,618
operations

Loss on sale
and                (4,469  )     3,080            -              -              (1,389  )
deconsolidation

Interest and
other income,      899           -                -              -              899
net

Income (loss)
before income      (1,657  )     4,485            1,546          4,754          9,128
taxes

Income taxes       5,406         322              -              -              5,728

Net income       $ (7,063  )   $ 4,163          $ 1,546        $ 4,754        $ 3,400
(loss)

Earnings (loss)
per share:*

Basic            $ (0.10   )   $ 0.06           $ 0.02         $ 0.07         $ 0.05

Diluted          $ (0.10   )   $ 0.06           $ 0.02         $ 0.06         $ 0.05

Weighted
average shares
outstanding

Basic              72,321                                                       72,321

Diluted            72,321                                                       73,527

EBITDA:

Income (loss)
before income    $ (1,657  )                                                  $ 9,128
taxes

Interest           324                                                          324

Depreciation
and                6,706                                                        6,706
amortization

EBITDA           $ 5,373                                                      $ 16,158

Add: Business
reorganization     1,405                                                        -
and related

Loss on sale
and                4,469                                                        1,389
deconsolidation

Adjusted EBITDA  $ 11,247                                                     $ 17,547

*Basic and diluted earnings (loss) per share may not add due to rounding





TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

                                Non-GAAP Reconciling Items

                For the year    Business         Professional                  Non-GAAP for
                                                                               the year

                ended October   reorganization   fees and       Stock-based    ended October
                31,                                                            31,

                2008            and related      legal          compensation   2008
                                                 matters

Net revenue     $ 1,537,530     $ -              $ -            $ -            $ 1,537,530

Cost of goods
sold:

Product costs     633,979         -                -              -              633,979

Software
development       169,398         -                -              (13,461 )      155,937
costs and
royalties

Internal          128,772         -                -              -              128,772
royalties

Licenses          56,546          -                -              -              56,546

Total cost of     988,695         -                -              (13,461 )      975,234
goods sold

Gross profit      548,835         -                -              13,461         562,296

Selling and       167,380         -                -              (2,370  )      165,010
marketing

General and       171,440         -                (16,243 )      (19,678 )      135,519
administrative

Research and      63,929          -                -              (4,878  )      59,051
development

Business
reorganization    4,478           (4,478 )         -              -              -
and related

Depreciation
and               25,755          -                -              -              25,755
amortization

Total
operating         432,982         (4,478 )         (16,243 )      (26,926 )      385,335
expenses

Income from       115,853         4,478            16,243         40,387         176,961
operations

Interest and
other expense,    (3,710    )     -                -              -              (3,710    )
net

Income before     112,143         4,478            16,243         40,387         173,251
income taxes

Income taxes      15,046          -                -              -              15,046

Net income      $ 97,097        $ 4,478          $ 16,243       $ 40,387       $ 158,205

Earnings per
share:*

Basic           $ 1.29          $ 0.06           $ 0.22         $ 0.54         $ 2.11

Diluted         $ 1.28          $ 0.06           $ 0.21         $ 0.53         $ 2.08

Weighted
average shares
outstanding

Basic             75,039                                                         75,039

Diluted           75,943                                                         75,943

EBITDA:

Income before   $ 112,143                                                      $ 173,251
income taxes

Interest          (695      )                                                    (695      )

Depreciation
and               25,755                                                         25,755
amortization

EBITDA            137,203                                                        198,311

Add: Business
reorganization    4,478                                                          -
and related

Adjusted        $ 141,681                                                      $ 198,311
EBITDA

*Basic and diluted earnings per share may not add due to rounding





TAKE-TWO INTERACTIVE SOFTWARE, INC. and SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

(in thousands, except per share amounts)

                                Non-GAAP Reconciling Items

                                                                               Non-GAAP
                 For the year   Business         Professional                  for the
                                                                               year

                 ended          reorganization   fees and       Stock-based    ended
                 October 31,                                                   October 31,

                 2007           and related      legal          compensation   2007
                                                 matters

Net revenue      $ 981,791      $ -              $ -            $ -            $ 981,791

Cost of goods
sold:

Product costs      511,088        (5,164  )        -              -              505,924

Software
development        136,485        -                -              (3,216  )      133,269
costs and
royalties

Internal           28,892         -                -              -              28,892
royalties

Licenses           58,569         -                -              -              58,569

Total cost of      735,034        (5,164  )        -              (3,216  )      726,654
goods sold

Gross profit       246,757        5,164            -              3,216          255,137

Selling and        130,652        -                -              (1,232  )      129,420
marketing

General and        150,432        -                (16,726 )      (7,080  )      126,626
administrative

Research and       48,455         -                -              (3,735  )      44,720
development

Business
reorganization     17,467         (15,401 )        -              (2,066  )      -
and related

Depreciation
and                27,449         -                -              -              27,449
amortization

Total operating    374,455        (15,401 )        (16,726 )      (14,113 )      328,215
expenses

Loss from          (127,698 )     20,565           16,726         17,329         (73,078 )
operations

Loss on sale
and                (4,469   )     3,080            -              -              (1,389  )
deconsolidation

Interest and
other income,      3,952          -                -              -              3,952
net

Loss before        (128,215 )     23,645           16,726         17,329         (70,515 )
income taxes

Income taxes       10,191         322              -              -              10,513

Net loss         $ (138,406 )   $ 23,323         $ 16,726       $ 17,329       $ (81,028 )

Loss per
share:*

Basic            $ (1.93    )   $ 0.32           $ 0.23         $ 0.24         $ (1.13   )

Diluted          $ (1.93    )   $ 0.32           $ 0.23         $ 0.24         $ (1.13   )

Weighted
average shares
outstanding

Basic              71,860                                                        71,860

Diluted            71,860                                                        71,860

EBITDA:

Loss before      $ (128,215 )                                                  $ (70,515 )
income taxes

Interest           (2,570   )                                                    (2,570  )

Depreciation
and                27,449                                                        27,449
amortization

EBITDA             (103,336 )                                                    (45,636 )

Add: Business
reorganization     22,631                                                        -
and related

Loss on sale
and                4,469                                                         1,389
deconsolidation

Adjusted EBITDA  $ (76,236  )                                                  $ (44,247 )

*Basic and diluted loss per share may not add due to rounding




    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.