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Weak Holiday Sales; Double Digit Decline

Electronic Arts today announced that it expects net revenue and earnings per share for the third and fourth fiscal quarters and fiscal 2006 to be well below both the financial guidance provided by EA on November 1, 2005 as well as current consensus estimates. The changes are primarily the result of unanticipated market declines in both North America and Europe. “Holiday sales are not meeting expectations,” said Larry Probst, Chairman and Chief Executive Officer. “For the December quarter, it is likely the industry will be down double digits on a percentage basis.”