Q4 fiscal 2008 financial results three months ended October 31, 2008

Net Revenues – $17,992 [compared to $11,898 three months ended October 31, 2007]

Net Income (loss) – $387 [compared to $(961) three months ended October 31, 2007]

Full year fiscal 2008 financial results ended October 31, 2008

Net Revenues – $63,887 [compared to $50,967 year ended October 31, 2007]

Net Income (loss) – $3,352 [compared to $(4,770) year ended October 31, 2007]

EDISON, N.J., Jan 29, 2009 /PRNewswire-FirstCall via COMTEX News Network/ — Majesco Entertainment Company (Nasdaq: COOL), an innovative provider of video games for the mass market, today announced that its net income for the three and twelve months ended October 31, 2008 was $0.4 million, or $0.01 per share and $3.4 million, or $0.12 per share, respectively. This compares to a net loss for the three months ended October 31, 2008 of $0.9 million or $0.03 per share and net income for the twelve months ended October 31, 2008 of $2.1 million, or $0.08 per share, which was previously announced in a press release on January 13, 2009.

The previously announced financial results were updated to reflect a renegotiation of the settlement of securities class action litigation brought on behalf of a purported class of purchasers of Majesco securities pending in the United States District Court, District of New Jersey. The amendment to the settlement occurred after the Company’s earnings release on January 13, 2009 and prior to the Company’s filing of its Annual Report on Form 10-K. The amended settlement terms reduce the overall costs of the settlement to the Company, in addition to reducing the number of shares that would have been issued under the original settlement.

Under the terms of the amended settlement, which is subject to court approval, Majesco will make a cash payment of $0.7 million and will contribute one million shares of its common stock. Claimants will also receive a cash payment from the Company’s insurance. The shares and cash will be distributed to the settlement class if and when the court grants final approval to the settlement and the settlement becomes effective. As a result of the change in the settlement agreement the Company will revise the estimated charge for the settlement to $1.25 million, representing the cash payment of $0.7 million and the value of one million shares as of the last day of the Company’s 2008 fiscal year. The final value of the settlement may change if the price of the stock is different than $0.55 at the time the shares are distributed. The Company will adjust the fair value of the liability to the fair value of the common stock expected to be distributed at each balance sheet date and record the resulting change as a non-cash charge, or gain, to earnings in each period until the common stock is distributed.

The Company had previously recorded a $2.5 million charge for its contribution to the original settlement in its second quarter ended April 30, 2007. That charge reflected the expected value of the securities to be paid to the plaintiffs, which under that agreement was a minimum of 1.875 million shares, but no less than $2.5 million in value.

About Majesco Entertainment Company

Majesco Entertainment Company is a provider of video games for the mass market. Building on 20 years of operating history, Majesco is focused on developing and publishing a wide range of casual and family oriented video games on leading console and portable systems. Product highlights include Cooking Mama(TM) and Cake Mania(R)2 for Nintendo DS(TM), and Cooking Mama World Kitchen and Jillian Michaels’ Fitness Ultimatum 2009 for Wii(TM). Majesco’s shares are traded on the Nasdaq Stock Market under the symbol: COOL. Majesco is headquartered in Edison, NJ and has an international office in Bristol, UK. More information about Majesco can be found online at www.majescoentertainment.com.

Safe Harbor

Some statements set forth in this release, contain forward-looking statements that are subject to change. Statements including words such as “anticipate”, “believe”, “estimate” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause our results to differ materially from our expectations include the following: consumer demand for our products, the availability of an adequate supply of, current-generation and next-generation gaming hardware, including but not limited to Nintendo’s DS and Wii(TM) platforms; our ability to predict consumer preferences among competing hardware platforms; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; timely development and release of our products; competition in the interactive entertainment industry; developments in the law regarding protection of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; our ability to manage expenses; our ability to attract and retain key personnel; adoption of new accounting regulations and standards; adverse changes in the securities markets; our ability to comply with continued listing requirements of the Nasdaq stock exchange; the availability of and costs associated with sources of liquidity; final resolution of the class action and other litigation on terms acceptable to the Company, and other factors described in our filings with the SEC, including our Annual Report on Form 10-K for the year ended October 31, 2007. We do not undertake, and specifically disclaim any obligation, to release publicly the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.