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U.S. Bancorp Piper Jaffray Analyst Says 'Buy Video Game Sector for Near Term Opportunity'

Upgrades ATVI and TTWO From Outperform to Strong Buy Based on Seasonality

MINNEAPOLIS, July 23 /PRNewswire-FirstCall/ -- As a group, video gamesoftware stocks have historically been a good buy in the mid-summer and haveperformed well during the July through November period. Looking to the pasteleven years, this seasonality has proven out eight times (eight years up, twoyears down and one year flat). U.S. Bancorp Piper Jaffray Senior Cable, Mediaand Entertainment Analyst Anthony Gikas believes now is the time to own videogame software names given the historical seasonality of the sector.

"While this seasonality is irrelevant to long-term fundamental buyers,shorter-term traders should take note," said Gikas. "Whether your short-termtrading horizon is weeks or three months, now is seasonally the time to buythese stocks."

Gikas today upgraded Take-Two Interactive Software, Inc. (TTWO, $17.68,#>) to Strong Buy from Outperform and lowered his 12-month price target to$27, based on 13 times his calendar 2003 earnings-per-share (EPS) estimate of$2.05. In addition, Gikas today upgraded Activision, Inc. (ATVI, $24.07, #>)to Strong Buy from Outperform and lowered his 12-month price target to $29,based on 20 times his calendar 2003 EPS estimate of $1.45.

"We are upgrading TTWO and ATVI based on valuation, seasonality and strongnear-term business fundamentals," said Gikas. "Both Take-Take Two andActivision continue to make strong market share gains and their businessfundamentals and visibility remain very strong."

Gikas says that although today's market conditions are unusually volatile,it is reasonable to think that the group can run during the next three-to-fourmonths due to strong company visibility, increasing sales expectations andsector predictability.

U.S. Bancorp Piper Jaffray, a subsidiary of Minneapolis-basedU.S. Bancorp (NYSE: USB), provides a full range of investment products andservices to businesses, institutions and individuals. The company'sinvestment banking business has grown significantly in the last several yearsby focusing on the needs of growth companies in the health care, technology,financial institutions, consumer and communications growth sectors. U.S.Bancorp Piper Jaffray has a national reputation for its expertise infundamental research and equity and debt financing. U.S. Bancorp offers acomprehensive range of financial solutions through U.S. Bank, U.S. BancorpAsset Management, U.S. Bancorp Investments and U.S. Bancorp Piper Jaffray.

The following disclosures apply to stocks mentioned in this report if andas indicated: (#) U.S. Bancorp Piper Jaffray (USBPJ) makes a market in thecompany's securities. (ˆ) USBPJ analysts who follow this company, or membersof their household, have a beneficial interest in the company's securities.USBPJ analysts or members of their household may sell such positions while aStrong Buy, Outperform, or Market Perform rating is maintained; however, theymay do so only upon appropriate USBPJ management approval. (>) USBPJ analystswho follow this company, or members of their household, have a beneficialinterest in the company's securities that were acquired in a privatetransaction pre-IPO. USBPJ analysts or members of their household may sellsuch positions while a Strong Buy, Outperform, or Market Perform rating ismaintained; however, they may do so only upon appropriate USBPJ managementapproval. (@) Within the past three years, USBPJ was managing underwriter ofan offering of, or dealer manager of a tender offer for, the company'ssecurities or the securities of an affiliate. (˜) A USBPJ officer, director,or other employee is a director and/or officer of the company.

This material is based on data obtained from sources we deem to bereliable; it is not guaranteed as to accuracy and does not purport to becomplete. This information is not intended to be used as the primary basis ofinvestment decisions. Because of individual client requirements, it shouldnot be construed as advice designed to meet the particular investment needs ofany investor. It is not a representation by us or an offer or thesolicitation of an offer to sell or buy any security. Further, a securitydescribed in this release may not be eligible for solicitation in the statesin which the client resides. U.S. Bancorp and its affiliated companies, andtheir respective officers or employees, or members of their families, may havea beneficial interest in the company's securities and may purchase or sellsuch positions in the open market or otherwise. This report is acommunication made in the United Kingdom by U.S. Bancorp Piper Jaffray tomarket counterparties or intermediate customers and is exclusively directed atsuch persons; it is not directed at private customers and any investment orservices to which the communication may relate will not be available toprivate customers. In the United Kingdom, no persons other than a marketcounterparty or an intermediate customer should read or rely on any of theinformation in this communication. Securities products and services offeredthrough U.S. Bancorp Piper Jaffray, member SIPC and NYSE, Inc., a subsidiaryof U.S. Bancorp. Additional information is available upon request.

Nondeposit investment products are not insured by the FDIC, are notdeposits or other obligations of or guaranteed by U.S. Bank NationalAssociation or its affiliates, and involve investment risks, includingpossible loss of the principal amount invested. Securities products andservices are offered through U.S. Bancorp Piper Jaffray Inc., member SIPC andNYSE, Inc., a subsidiary of U.S. Bancorp. (5/99-0679)

U.S. Bancorp Piper Jaffray Inc. is a member of the National Association ofSecurities Dealers, CRD number 665.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.

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