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THQ Resolves Arbitration Dispute; Receives $4 Million Settlement

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.


 
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