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                      Hasbro To Sell Games to Infogrames

PROVIDENCE, R.I. (AP) - Hasbro Inc. warned its fourth quarter earnings
will fall below expectations and said full-year earnings would be
break-even "at best".

The warning came as the toy maker announced the sale of its interactive
games divisions and licensing of many of its most well-known products to
Infogrames Entertainment for $100 million.

Shares of the Pawtucket-based company fell 16 percent to $9.69 a share in
after-hours trading after finishing the regular session down 19 cents at
$11.56 on the New York Stock Exchange.

Hasbro said it may post a loss for fiscal 2000 of 10 cents and 20 cents a
share before one-time items. Analysts surveyed by First Call/Thomson
Financial had pegged earnings for the year at 43 cents per share.
Estimates for the quarter had been 23 cents per share.

"The reduced expectations can be attributed in large part to the decline
in worldwide revenue of trading card games. Frankly, while Pokemon Trading
Card Game cards are still selling well, we were too aggressive in our
forecast following incredible demand in 1999 and 2000," said Alan G.
Hassenfeld, chairman and CEO.

Hasbro will halve its quarterly dividend to 3 cents from 6 cents per
share, effective Feb. 15. The move is expected to save $21 million

The company also has increased the number of planned job cuts, from up to
550 announced in October, to 750 jobs.

The sale of Hasbro Interactive gives the company a long-term revenue
stream and relieves the company of two divisions that have lost a
significant amount of money in the last two years, spokesman Wayne
Charness said.

"This has been a difficult business for us," he said. "This partnership
is an important step toward sustaining long-term profitability.''

Infogrames, which makes games for PlayStation and Nintendo, will acquire
Hasbro Interactive, based in Beverly, Mass., and, Hasbro's game
portal on the Web.

The French company will get full rights to Atari and Micropose, including
the popular Roller Coaster Tycoon game.

Infogrames also will gain exclusive rights for 15 years to develop
interactive versions of Hasbro products such as Monopoly, Scrabble and Mr.
Potato Head.

Charness would not say how much Hasbro expects to earn from the licensing
deal. Infogames will pay Hasbro $5 million cash and $95 million in stock
for all the outstanding shares of Hasbro Interactive.

The sale, which requires regulatory and shareholder approval, is expected
to close by the end of the first quarter of 2001.

a second one says:

Infogrames Entertainment to Acquire Hasbro Interactive and

LYON, France & PAWTUCKET, R.I.--(BUSINESS WIRE)--Dec. 6, 2000--Infogrames
Entertainment SA (Euronext 5257) and Hasbro, Inc. (NYSE:HAS) jointly
announced today that they have entered into a strategic agreement,
creating one of the foremost powerhouses in the mass market digital
interactive entertainment world. The agreement is comprised of three main
elements, including the Infogrames acquisition of Hasbro Interactive; a
long-term licensing agreement giving Infogrames exclusive rights to
develop and publish digital interactive games based on current and future
Hasbro properties on all existing and future digital interactive formats;
and the acquisition of

Infogrames will purchase 100% of the common stock of Hasbro Interactive
and for $100 million - comprised of $95 million in Infogrames
Entertainment SA securities (approximately 4.5 million common shares) and
$5 million in cash. In addition, Hasbro will receive an annual guarantee
from Infogrames based on sales generated from the licensing agreement. The
agreements are subject to the approval of the shareholders of Infogrames,
regulatory approval and other customary closing conditions. The companies
expect the deal to close early in the first calendar quarter of 2001.

"Infogrames and Hasbro are truly poised to become worldwide leaders in the
digital entertainment market," said Bruno Bonnell, Chairman and CEO of
Infogrames. "Infogrames' external growth strategy consists of three
requirements: a willingness of the prospective partner's management to
share our strategic vision, a complementary set of skills and products,
and finally, value for our shareholders. The Hasbro Interactive and acquisition meets these criteria," said Mr. Bonnell.
"Infogrames' access to Hasbro's long list of well-known properties fits
perfectly with our long-term publishing strategy to become the leader in
family entertainment. The terms are beneficial for Infogrames
Entertainment, since they have no direct impact on the company's future
investment capacity."

"This arrangement with Infogrames is a very positive one for Hasbro on
many different levels," said Alan Hassenfeld, Hasbro's Chairman and CEO.
"First, we have aligned ourselves with a premier player in the interactive
arena. Second, this strategic agreement with Infogrames meshes with our
strategy of reducing costs as we focus on consistently delivering profits
going forward. Third, this arrangement will provide a continuing revenue
stream to Hasbro over the long-term through Infogrames' expertise in
leveraging our current and future properties."

The agreement is comprised of three main elements:

Infogrames Entertainment's acquisition of 100% of the common stock of
Hasbro Interactive, a subsidiary of Hasbro, Inc.

The acquisition gives Infogrames a catalog of titles based on well-known
properties, including:

--The MICROPROSE brand and titles, including the international hit
game in the US according to PC DATA'S latest report.

--The legendary ATARI name and properties, such as CENTIPEDE, MISSILE
COMMAND, and the historic PONG, which pioneered the video game revolution.

The exclusive rights to develop and publish interactive games based on
current and future Hasbro, Inc. properties, including:

--The interactive versions of popular Hasbro board games, which include

--The interactive versions of children's games and toys, such as MR.

--The massively multi-player game DUNGEONS AND DRAGONS.

Under the terms of the agreement, Infogrames gains the rights through a
licensing agreement with Hasbro to develop games based on Hasbro
properties for a period of 15 years plus an option for an additional 5
years based on performance, on all existing and future digital interactive
formats. Terms of the licensing agreement are consistent with other
traditional Infogrames' Entertainment licensing agreements.

These formats include: current and next-generation video game consoles
such as Sony PlayStation2, Microsoft Xbox, Sega Dreamcast, and Nintendo
GameBoy Advance and GameCube, personal computers, broadband networks,
interactive television, cellular telephones, arcade, and hand-held devices
(PDAs). In keeping with its global multi-platform strategy, Infogrames
will leverage Hasbro's unmatched content by developing titles on a variety
of platforms that appeal to a global market.

These Hasbro Interactive brands, together with Hasbro's owned brands, make
up a catalog of more than 200 family titles that are being managed by a
team of mass market product experts who have helped Hasbro Interactive
succeed in becoming the third largest PC publisher in the U.S.

Additionally, approximately 60 titles are currently in development,
including PlayStation2 and Xbox versions of franchises from HASBRO,

Infogrames will also seek out additional partnership opportunities with
telecommunications providers, media companies and hardware manufacturers
to bring these franchises to other platforms.

The long term licensing agreement combines Hasbro's expertise in
developing successful mass-market properties and Infogrames' expertise in
bringing top properties to the digital interactive market.

Hasbro's catalog of games and toys will be strengthened by their digital
interactive counterparts, published and globally distributed by
Infogrames. In addition, Infogrames' titles based on Hasbro properties
will benefit from Hasbro's powerful marketing programs for their games and

Acquisition of

As part of the agreement, Infogrames acquires, an online games
portal launching in early 2001. has already attracted over four
million visitors to its site, with more than one million people having
already registered to receive information about its launch.

At its launch, will allow visitors to play more than 30 online
games based on Hasbro properties, some of which include MONOPOLY, CLUE,
SCRABBLE(1), ASTEROIDS, and RISK. In addition, visitors to the site can
find news, information, tips and hints about games featured on

Visitors to the site will also have the ability to chat with other players
and participate in tournaments based on widely recognized games from the
Hasbro catalog.'s revenue strategy includes e-commerce,
sponsorships and individual subscriptions. Infogrames plans to extend to broadband users in the future.

JP Morgan & Lazard Freres advised Infogrames and Salomon Smith Barney
advised Hasbro in this financial transaction.

For additional information, Infogrames has posted a detailed presentation
on today's announcement at and

Infogrames Entertainment SA (Euronext 5257) is a worldwide leader in the
interactive entertainment software industry. Headquartered in France, the
company publishes and distributes award-winning computer and video games
for the PlayStation(R) game console, PlayStation(R) 2 computer
entertainment system, Microsoft(R) Xbox, Nintendo(R) 64, Nintendo(R) Game
Boy(R) Color, Sega(R) Dreamcast(TM), Macintosh(R), and personal computer
platforms, as well as interactive digital television platforms, mobile
smart devices (WAP, HDML) and in-flight entertainment systems. Founded in
1983 by chairman and CEO Bruno Bonnell, Infogrames has published many
award-winning franchises in its 17-year history, such as Alone In The
Dark(TM), Test Drive(R), Driver(TM), Deer Hunter(R), Oddworld(TM),
Unreal(TM), and V-Rally(TM). The company is also known for its
best-selling and award-winning line of children's entertainment software
from Humongous Entertainment(R) starring Putt-Putt(R), Freddi Fish(TM),
Pajama Sam(R) and SPY Fox(TM), as well as its successful Macintosh
publishing label, Macsoft, the number one publisher of Macintosh
entertainment software. In addition, Infogrames has a number of key
strategic licenses including Warner Bros. Looney Tunes(TM), Nickelodeon's
Blue's Clues(TM), AM General Hummer(R), and Harley-Davidson(R). Infogrames
distributes its games in approximately 60 different countries worldwide.
For more information, visit Infogrames' US Web site at

Based in New York, NY, Infogrames, Inc. (Nasdaq: IFGM) is a majority-owned
subsidiary of Infogrames Entertainment SA and serves as the headquarters
for the company's operations in North America.

Hasbro is a worldwide leader in children's and family leisure time
entertainment products and services, including the design, manufacture and
marketing of games and toys ranging from traditional to high-tech. Both
internationally and in the U.S., its PLAYSKOOL, TONKA, SUPER SOAKER,
products provide the highest quality and most recognizable play
experiences in the world.


Certain statements contained in this release contain "forward-looking
statements" within the meaning of the Private Securities Litigation Reform
Act of 1995. These statements may be identified by the use of
forward-looking words or phrases such as "anticipate", "believe", "could",
"expect", "intend", "may", "planned", "potential", "should", "will" and
"would". Such forward-looking statements are inherently subject to known
and unknown risks and uncertainties. Actual actions or results may differ
materially from those expected or anticipated in the forward-looking
statements. Specific factors that might cause such a difference include,
but are not limited to, third party actions or approvals that could delay
or increase the cost of implementation of the strategic agreement or alter
actions and reduce actual results; the risk that anticipated benefits of
the strategic agreement may not occur or be delayed or reduced in their
realization; and with respect to the online game site initiative,
technical difficulties in adapting games to online format and establishing
the online game site that could delay or increase the cost of the site
becoming operational; the acceptance by consumers of the games and other
products and services to be offered at the site; competition from other
online game sites and other game playing formats; and the fact online game
revenues may not be sufficient to cover the significant advertising and
other expenditures required or the support, service and product
enhancement demands of online users. There is no undertaking of an
obligation to make any revisions to the forward-looking statements
contained in this release or to update them to reflect events or
circumstances occurring after the date of this release.

(1) In the United States only.

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