Net revenue for the second fiscal quarter was $268.0 million, an increase of approximately 54% compared to $174.3 million for the same quarter of fiscal 2009. Second quarter fiscal 2010 sales were driven by the launches of BioShock 2, Grand Theft Auto: Episodes from Liberty City on the PS3 and PC, and Major League Baseball 2K10, along with continuing strong sales of catalog titles including NBA 2K10 and Grand Theft Auto IV.

Income from continuing operations for the second quarter was $16.9 million or $0.20 per share, compared to a loss from continuing operations of $10.4 million or $0.13 per share in the second quarter of fiscal 2009.

The second quarter 2010 results from continuing operations included $7.1 million in stock-based compensation expense ($0.07 per share); $4.9 million in non-cash interest and non-cash tax expense ($0.05 per share); $3.6 million of non-cash loss on sale of subsidiary ($0.04 per share); $1.2 million in business reorganization costs ($0.01 per share); and $1.9 million primarily for insurance reimbursements for settlements and professional fees related to unusual legal matters ($0.02 per share). Results from continuing operations for the second quarter of 2009 included $5.3 million in stock-based compensation expense ($0.07 per share); and $1.8 million in professional fees and expenses related to unusual matters ($0.02 per share).

Non-GAAP income from continuing operations was $31.9 million or $0.34 per diluted share in the second quarter of fiscal 2010, compared to a non-GAAP loss from continuing operations of $3.2 million or $0.04 per share in the second quarter of 2009. (Please refer to Non-GAAP Financial Measures and reconciliation tables included later in this release for additional information and details on non-GAAP items.)

For the six months ended April 30, 2010, net revenue was $431.2 million, compared to $323.6 million for the same period a year ago. Loss from continuing operations for the first half of fiscal 2010 was $16.9 million or $0.22 per share, compared to loss from continuing operations of $64.3 million or $0.84 for the 2009 period. Results from continuing operations for the first six months of fiscal 2010 included $13.6 million in stock-based compensation expense ($0.16 per share); $7.2 million in non-cash interest and non-cash tax expense ($0.09 per share); $3.6 million of non-cash loss on sale of subsidiary ($0.04 per share); $1.2 million in expenses related to business reorganization costs ($0.01 per share); and $1.2 million primarily for insurance reimbursements for settlements and professional fees related to unusual legal matters ($0.01 per share). Results from continuing operations for the first six months of fiscal 2009 included $11.5 million in stock-based compensation expense ($0.15 per share); and $6.7 million in professional fees and expenses related to unusual matters ($0.09 per share).

Non-GAAP income from continuing operations was $7.5 million or $0.09 per share in the first six months of 2010, compared to non-GAAP loss from continuing operations of $46.1 million or $0.60 per share in the comparable period of 2009. (Please refer to Non-GAAP Financial Measures and reconciliation information included later in this release.)

Product Milestones

• Rockstar Games launched Red Dead Redemption on May 18 in the Company’s third fiscal quarter. The title has sold in over 5 million units to date and has been a commercial and critical success, with a near-perfect score of 95* from Metacritic.com.
• Grand Theft Auto IV from Rockstar Games has sold over 17 million units globally.

Product Highlights

• 2K Games announced that Mafia II for the Xbox 360, PlayStation 3 and Windows PC is planned for release on August 24, 2010 in North America and on August 27, 2010 internationally.
• 2K Games released Sid Meier’s Civilization Revolution as a launch title for the Apple iPad.
• 2K Play today announced New Carnival Games for Wii and DS, the newest entry in its hit franchise that has sold over 6 million units. The title is planned for release this fall. The original Carnival Games title is the #3 selling third-party title of all time on the Wii according to The NPD Group**.
• 2K Play announced a number of new Nickelodeon products, including titles based on the popular Dora the Explorer and Go, Diego, Go! television series.
• 2K Games announced that XCOM, the re-imagining of one of gaming’s most storied and beloved franchises, is currently in development at 2K Marin exclusively for the Xbox 360 and Windows PC.

Financial Guidance

Take-Two is providing initial guidance for the third quarter ending July 31, 2010 and fourth quarter ending October 31, 2010, and is increasing its guidance for the fiscal year ending October 31, 2010 to reflect the successful launch of Red Dead Redemption and the Company’s better than expected second quarter results.

• L.A. Noire, Mafia II and Sid Meier’s Civilization V are planned for release in the fourth quarter of fiscal 2010; and
• The launch of Max Payne 3 has been moved out of fiscal 2010.