Jesse Sutton, Chief Executive Officer of Majesco Entertainment, said, “We delivered an exceptional quarter across all financial metrics as we continued to execute our plan. Our performance was driven by our focus on the casual gaming market and the steps we have taken to improve our financial position and operating model over the past year. Further, we benefited from a strong domestic sales performance, driven by sales of our Cooking Mama games, which delivered a revenue increase of 47 percent versus the same period last year. In the quarter, total revenue increased 29 percent to $18.7 million compared to the same period in 2007, gross margins were 40.2 percent, and we reported net income of $2.7 million, or $0.10 per share, which includes a $0.8 million benefit from adjustments to warrants and our litigation accrual. This performance demonstrates the potential of our business model.

“Our strategy is working and we are executing on our business plan,” continued Sutton. “We expect to continue to benefit from the improvements we have made in our operations throughout the rest of the year. Our new studio is open and is developing its first title, Our House for DS, which complements the previously announced Wii version and helps build our portfolio of intellectual property. We are focused on expanding the number of titles we publish and strengthening our retail distribution. Our management team remains committed to a disciplined financial approach, improving our profitability and driving increased value for shareholders over the long- term.”

Fiscal 2008 Outlook

The Company reconfirmed its outlook for fiscal 2008 full year net revenue to be in the range of $53 million to $58 million. The Company expects 59 percent of its net revenue to be from handheld titles, with virtually all titles for DS, and 41 percent from console titles, with 40 percent from titles for Wii. In 2007, 64 percent of its net revenue was from handheld titles, with 56 percent from titles for DS, while 30 percent was from console titles and 20 percent from Wii titles. The Company also expects that its mix of International revenues for the year will approximate previous years and be in the neighborhood of 15 to 20 percent. In 2008, excluding Majesco Studios, cash fixed costs, which include general and administrative, product research, and the fixed portion of sales and marketing costs, are expected to be similar to 2007 in the range of $12 to $14 million. The Company expects 2008 gross margins to show continued modest expansion, improving over the 33.9 percent reported in 2007. The Company’s guidance assumes the release of approximately 28 titles in 2008 with approximately 11 Wii, 15 DS titles and 2 other. This compares to 19 titles in 2007, comprised of 2 Wii, 13 DS and 4 other. The Company’s results are impacted by seasonality from the December holiday period and variability based on release schedules.

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