CALABASAS HILLS, Calif.--(BUSINESS WIRE)--Oct. 15, 2003--THQ Inc.
(Nasdaq:THQI) today announced that it has settled its arbitration
dispute with National Union, the company's directors' and officers'
insurance carrier. As part of the settlement, THQ will receive a
payment of $4.0 million as well as additional considerations from
National Union.
"THQ has amicably resolved its arbitration dispute with National
Union and we look forward to continuing our business relationship,"
said James M. Kennedy, THQ's Senior Vice President, Business and Legal
Affairs.
As a result of the settlement, THQ will recognize other income of
$4 million (pre-tax) in the quarter ended September 30, 2003.
The settlement resolves a dispute between the company and its
insurer regarding the amount of directors' and officers' liability
coverage due for the previously announced settlement of a class action
lawsuit filed against THQ in February 2000. National Union had
previously contributed $5.0 million to the class action settlement,
but had disputed its obligation to pay the balance of $5.0 million
under THQ's total of $10.0 million in directors' and officers'
insurance coverage.
THQ Inc. is a leading, worldwide developer and publisher of
interactive entertainment software for a variety of hardware platforms
including those manufactured by Sony Computer Entertainment America
Inc., Nintendo and Microsoft as well as PC CD-ROM and wireless
devices. The THQ web site is located at www.thq.com. The THQ Wireless
site is located at www.thqwireless.com. THQ is a registered trademark
of THQ Inc.
This press release contains statements that are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements include, but are not limited to,
THQ's continued use of its directors' and officers' insurance carrier.
These statements are based on current expectations, estimates and
projections about THQ's business based, in part, on assumptions made
by its management. These statements are not guarantees of THQ's future
performance and involve risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecasted in such
forward-looking statements due to numerous factors, including, but not
limited to, those described above and the following: changes in demand
for THQ's products, including the original content and licensed
content games referenced herein, product mix, the timing of product
development, customer orders and deliveries and the impact of
competitive products. In addition, such statements could be affected
by growth rates and market conditions relating to the interactive
software industry and general domestic and international economic
conditions. Specific information concerning these and other such
factors is contained in the company's transition report on Form 10-KT
for the period ended March 31, 2003. A copy of this filing may be
obtained by contacting THQ or the SEC. The forward-looking statements
contained herein speak only as of the date on which they are made, and
THQ does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this
release.
CONTACT:
THQ
Julie MacMedan, 818-871-5095 (Investor Relations)
Liz Pieri, 818-871-5061 (Media Relations)
SOURCE: THQ Inc.
