Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced today that it has been notified that the staff of the Federal Trade Commission's (FTC) Division of Advertising Practices is conducting an inquiry into advertising claims made for Grand Theft Auto: San Andreas. The Company intends to fully cooperate with the FTC inquiry, and believes that it acted in accordance with all applicable laws and regulations. The Company cooperated with a recently concluded Entertainment Software Rating Board (ESRB) investigation into this matter and has taken decisive and immediate corrective action.

Rockstar Games and Take Two Interactive regret that consumers may have been exposed to content that was not intended to be accessible in the playable version of Grand Theft Auto: San Andreas. The Company has taken significant steps to remedy this situation, including halting production of the current version of Grand Theft Auto: San Andreas, and has begun working on a version of the game that will not contain the elements used to enable the "hot coffee" modification. Going forward, the Company will refine the process by which it edits games and will enhance the protection of its game code to prevent such future modifications.