ACTIVISION^® ACQUIRES SOFTWARE DEVELOPER LUXOFLUX CORPORATION

Luxoflux is
Currently in Development with
True Crime^TM:
Streets of LA^TM
and Sequel to "Shrek"

Santa Monica, CA
-October 11, 2002 – Further enhancing its internal console development
capabilities, Activision, Inc. (Nasdaq:  ATVI), today announced the
acquisition of software developer Luxoflux Corporation. 

 Activision and Luxoflux have collaborated since 1997 most recently on
LucasArts Entertainment’s Star Wars Demolition.  Luxoflux is
currently in development on Activision’s upcoming title True Crime:
Streets of L.A and a game based on the sequel to DreamWorks Pictures’
blockbuster Academy Award winning feature film "Shrek" which is being
co-developed and co-published by TDK Mediactive, Inc. and Activision.

Founded
by Adrian Stephens and Peter Morawiec, Luxoflux operates a 30- person studio
in Santa Monica, CA.  The company has proprietary technology that can be used
to create compelling interactive entertainment experiences across multiple
console platforms.   Under the terms of the agreement, Luxoflux has become a
wholly owned subsidiary of Activision.  As part of the transaction, Luxoflux’s
management team and key employees have signed long-term employment contracts
with Activision. 

Activision’s Executive Vice President of
Worldwide Studios, Larry Goldberg, said, "Luxoflux’s strong and diverse talent
pool further enhances our product development capabilities and will play a key
role in Activision’s continued leadership on the console platforms.  Luxoflux
has a proven track record in developing fun and compelling games and we are
confident that their best work is yet to come."

"We are
delighted to become a part of the oldest independent video game publisher in
the world," states Adrian Stephens, president of Luxoflux.   "We look forward
to continuing to contribute to the company’s  success with our unique brand of
original gameplay and technology." 

Headquartered in Santa Monica,
California, Activision, Inc. is a leading worldwide developer, publisher and
distributor of interactive entertainment and leisure products.  Founded in
1979, Activision posted revenues of $786 million for the fiscal year ended
March 31, 2002.

Activision
maintains operations in the U.S., Canada, the United Kingdom, France, Germany,
Japan, Australia, Scandinavia and the Netherlands.  More information about
Activision and its products can be found on the
company’s World Wide Web site, which is located at
www.activision.com.

The statements contained in this release
that are not historical facts are "forward-looking statements."  The Company
cautions readers of this press release that a number of important factors
could cause Activision’s actual future results to differ materially from those
expressed in any such forward-looking statements.  These important factors,
and other factors that could affect Activision, are described in Activision’s
Annual Report on Form 10-K for the fiscal year ended March 31, 2002, which was
filed with the United States Securities and Exchange Commission.  Readers of
this press release are referred to such filings.