Spreadsheet: 273b6b81-5121-4348-a562-319be0aee87b
Sheet: GAAP to Non-GAAP Measures 2008

 | [NAME], INC. AND SUBSIDIARIES
 | RECONCILIATION OF GAAP NET INCOME TO NON-GAAP NET INCOME
 | (Amounts in millions, except earnings (loss) per share data)
 | Three Months ended September 30, 2008 |  |  | Net Revenues | Cost of Sales - Product Costs | Cost of Sales - Software Royalties and Amortization | Cost of Sales - Intellectual Property Licenses | Cost of Sales - MMORPG | Product Development | Sales and Marketing | General and Administrative | Restructuring | Total Costs and Expenses
 | GAAP Measurement |  |  | 711 | 279 | 50 | 36 | 43 | 200 | 142 | 94 | 61 | 905
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | 12 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0
 |  | Less:  Stock-based compensation (including purchase price accounting related adjustments) | (b) | 0 | 0 | 0 | 0 | 0 | -7 | -4 | -15 | 0 | -26
 |  | Less:  Results of Activision Blizzard's non-core exit operations | (c) | -6 | -1 | -1 | 0 | 0 | -91 | -12 | -11 | 0 | -116
 |  | Less:  One time costs related to the Business Combination, integration and restructuring | (d) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -17 | -61 | -78
 |  | Less:  Amortization of intangible assets and purchase price accounting related adjustments | (e) | 0 | -8 | -24 | -22 | 0 | 0 | -35 | -1 | 0 | -90
 | Non-GAAP Measurement |  |  | 717 | 270 | 25 | 14 | 43 | 102 | 91 | 50 | 0 | 595
 | Three Months ended September 30, 2008 |  |  | Operating Income (Loss) | Net Income (Loss) | Basic Earnings (Loss) per Share | Diluted Earnings (Loss) per Share
 | GAAP Measurement |  |  | -194 | -108 | -0.08497246262785209 | -0.08497246262785209
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | 12 | 7 | 0.00546787365646919 | 0.00546787365646919
 |  | Less:  Stock-based compensation (including purchase price accounting related adjustments) | (b) | 26 | 16 | 0.01249799692907243 | 0.01249799692907243
 |  | Less:  Results of Activision Blizzard's non-core exit operations | (c) | 110 | 67 | 0.05233536214049082 | 0.05233536214049082
 |  | Less:  One time costs related to the Business Combination, integration and restructuring | (d) | 78 | 56 | 0.04374298925175352 | 0.04374298925175352
 |  | Less:  Amortization of intangible assets and purchase price accounting related adjustments | (e) | 90 | 54 | 0.04218073963561946 | 0.04218073963561946
 | Non-GAAP Measurement |  |  | 122 | 92 | 0.0718634823421665 | 0.0718634823421665
 | Three Months ended December 31, 2008 |  |  | Net Revenues | Cost of Sales - Product Costs | Cost of Sales - Software Royalties and Amortization | Cost of Sales - Intellectual Property Licenses | Cost of Sales - MMORPG | Product Development | Sales and Marketing | General and Administrative | Restructuring | Total Costs and Expenses
 | GAAP Measurement |  |  | 1639 | 805 | 179 | 174 | 53 | 196 | 244 | 104 | 32 | 1787
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | 705 | 135 | 61 | 19 | 0 | 0 | 0 | 0 | 0 | 215
 |  | Less:  Stock-based compensation (including purchase price accounting related adjustments) | (b) | 0 | 0 | -4 | 0 | 0 | -10 | -4 | -25 | 0 | -43
 |  | Less:  Results of Activision Blizzard's non-core exit operations | (c) | -1 | 0 | 0 | 0 | 0 | -10 | -3 | -3 | 0 | -16
 |  | Less:  Costs related to the Business Combination, integration and restructuring | (d) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11 | -32 | -43
 |  | Less:  Amortization of intangible assets and purchase price accounting related adjustments | (e) | 0 | -7 | -71 | -118 | 0 | 0 | -4 | -1 | 0 | -201
 | Non-GAAP Measurement |  |  | 2343 | 933 | 165 | 75 | 53 | 176 | 233 | 64 | 0 | 1699
 | Three Months ended December 31, 2008 |  |  | Operating Income (Loss) | Net Income (Loss) | Basic Earnings (Loss) per Share | Diluted Earnings (Loss) per Share
 | GAAP Measurement |  |  | -148 | -72 | -0.05429864253393665 | -0.05429864253393665
 |  | Less:  Net effect from deferral in net revenues and related cost of sales | (a) | 490 | 313 | 0.2361143169266371 | 0.2261143169266371
 |  | Less:  Stock-based compensation (including purchase price accounting related adjustments) | (b) | 43 | 26 | 0.01961332984055132 | 0.01961332984055132
 |  | Less:  Results of Activision Blizzard's non-core exit operations | (c) | 15 | 11 | 0.008297947240233252 | 0.008297947240233252
 |  | Less:  Costs related to the Business Combination, integration and restructuring | (d) | 43 | 30 | 0.02263076520063614 | 0.02263076520063614
 |  | Less:  Amortization of intangible assets and purchase price accounting related adjustments | (e) | 201 | 121 | 0.09127741964256578 | 0.09127741964256578
 | Non-GAAP Measurement |  |  | 644 | 429 | 0.3236199423690969 | 0.3136199423690968
 |  | (a) Reflects the net change in deferred net revenues and related cost of sales.
 |  | (b) Includes expense related to stock-based compensation.
 |  | (c) Reflects the results of products and operations from the historical Vivendi Games businesses that the Company has exited, divested or wound down.
 |  | (d) Reflects costs related to the Business Combination with Vivendi Games (including transaction costs, integration costs and restructuring activities). Restructuring activities includes severance costs, facility exit costs and balance sheet write down and exit costs from the cancellation of projects.
 |  | (e) Reflects amortization of intangible assets, and the change in the fair value of assets and liabilities from purchase price accounting related adjustments.
 |  | The per share adjustments are presented as calculated, and the GAAP and non-GAAP earnings (loss) per share information is also presented as calculated. The sum of these measures, as presented, may differ due to the impact of rounding.