Acclaim Entertainment, Inc. Announces Non-Cash Restatement of 2001 Results of Operations And Subsequent Period Balance Sheets

Acclaim Entertainment, Inc. Announces Non-Cash Restatement of
2001 Results of Operations And Subsequent Period Balance Sheets 


GLEN COVE, N.Y., May 5  /PRNewswire-FirstCall/ -- Acclaim Entertainment, Inc. 
today announced that as a result of the Company's internal review of its
financial reports for its fiscal year ended March 31, 2004, the Company
discovered an accounting error, which occurred during the Company's 2001 fiscal
year.  In fiscal 2001, the Company incorrectly recorded a $9.5 million bank
advance relating to a junior participation transaction between the Company, its
primary lender and six junior participants.  As a result of this accounting
error, the Company will be restating its audited financial statements for its
fiscal year ended August 31, 2001, as well as its quarterly and year-end
balance sheets (both audited and unaudited) included in the financial
statements for the Company's fiscal years ended August 31, 2002 and March 31,
2003.

The Company anticipates that this restatement will result in a reduction, by
$9.5 million, of the Company's net earnings for fiscal year 2001, from a
reported amount of $17.3 million to $7.8 million (from $0.26 to $0.12 per
diluted common share).  The Company expects that there will be no impact on its
historical cash flows or cash position; however, this restatement will affect
all of the Company's reported balance sheets (audited and unaudited),
subsequent to August 31, 2001, by increasing both the Company's short-term
borrowings and accumulated deficit by $9.5 million.  This adjustment will not
impact the Company's current or historical cash balances.

This press release includes certain statements regarding, among other things,
the amounts and expected effect of a non-cash restatement of the Company's
audited financial statements, which constitute forward-looking statements
within the meaning of the Securities Act of 1933 and the Securities Exchange
Act of 1934.  Such statements are subject to certain risks and uncertainties,
including, the risk that the information being provided herein is preliminary
and is subject to further verification and confirmation.  Such risks and
uncertainties could cause actual results to differ materially from those being
projected herein.  The Company's management believes these forward looking
statements are reasonable based on current expectations; however, undue
reliance should not be placed on such forward looking statements.

About Acclaim Entertainment

Based in Glen Cove, N.Y., Acclaim Entertainment, Inc., is a worldwide
developer, publisher and mass marketer of software for use with interactive
entertainment game consoles including those manufactured by Nintendo, Sony
Computer Entertainment and Microsoft Corporation as well as personal computer
hardware systems.  Acclaim owns and operates five studios located in the United
States and the United Kingdom, and publishes and distributes its software
through its subsidiaries in North America, the United Kingdom, Australia,
Germany, France and Spain.  The Company uses regional distributors worldwide. 
Acclaim also distributes entertainment software for other publishers worldwide,
publishes software gaming strategy guides and issues "special edition" comic
magazines periodically. Acclaim's corporate headquarters are in Glen Cove, New
York and Acclaim's common stock is publicly traded on Nasdaq under the symbol
AKLM.  For more information please visit our website at http://www.acclaim.com/
.

The statements contained in this release, which are not historical facts, are
"forward-looking statements." Acclaim cautions readers of this press release
that a number of important factors could cause Acclaim's actual future results
to differ materially from those expressed in any such forward-looking
statements. These important factors, including, without limitation, the
financial strength of the interactive entertainment industry, dependence on new
product introductions and the ability to maintain the scheduling of such
introductions, technological changes, dependence on major platform
manufacturers and other factors that could affect Acclaim, are described in
Acclaim's Annual Report on Form 10-K for the fiscal year ended March 31, 2003,
and Acclaim's subsequent Quarterly Reports on Form 10-Q, all of which were
filed with the United States Securities and Exchange Commission. Readers of
this press release are referred to such filings.

   Contacts:
   Edward M. Slezak                 Alan B. Lewis
   Acclaim Entertainment, Inc.      Acclaim Entertainment, Inc.
   [phone]                   [phone]
                 

DATASOURCE: Acclaim Entertainment, Inc.



CONTACT: Edward M. Slezak, [phone], or , or

Alan B. Lewis, [phone], or , both of Acclaim

Entertainment, Inc. 



Web site:  http://www.acclaim.com/ 

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