Electronic Arts (EA) 8-K Electronic Arts Reports Fiscal Third Quarter Results

Exhibit 99.1

ELECTRONIC ARTS REPORTS FISCAL THIRD QUARTER RESULTS

Long-Term Exclusives with NFL and ESPN

Record Cash Flows for Last 12 months

REDWOOD SHORES, CA—January 25, 2005—Electronic Arts (NASDAQ: ERTS) today announced financial results for the fiscal third quarter ended December 31, 2004.

Net revenue was $1.428 billion, down 3.2 percent as compared with $1.475 billion for the fiscal quarter ended December 31, 2003. Sales were driven byNeed for Speed^™ Underground 2, FIFA 2005, The Lord of the Rings^™, The Third Age^™, NBA LIVE 2005, The Urbz^™: Sims in the City^™, Golden Eye: Rogue Agent^™and The Lord of the Rings: Battle for Middle- earth^™—each reaching platinum status in the quarter.Madden NFL 2005, The Sims^™ 2and Tiger Woods PGA TOUR^® 2005had continued strong sales each selling over one million copies in the quarter.

EA entered into long-term agreements with both the National Football League and ESPN. In addition, the Company agreed to purchase shares representing approximately 19.9 percent of Ubisoft Entertainment, a leading developer and publisher of interactive entertainment.

Net income was $375 million, a 4.4 percent decrease year-over-year. Diluted earnings per share were $1.18 as compared to $1.26 a year ago.

Non-GAAP net income, excluding certain items, was $391 million, roughly flat year-over-year. Non-GAAP diluted earnings per share were $1.23 as compared to $1.26. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.)

Trailing twelve month operating cash flow was a record $722 million as compared to $538 million for the same period a year ago – an increase of $184 million.

“This quarter, EA further strengthened its long term leadership position,” said Larry Probst, Chairman and Chief Executive Officer. “Our exclusive agreements with the NFL, NFLPA and ESPN, along with our strategic investment in Ubisoft will help provide the framework for continued growth in the future.”

“We expect calendar 2005 to be a defining year,” said Warren Jenson, Chief Financial and Administrative Officer. “While the year ahead will certainly be a year of investment for EA, we expect to see growth through new exciting platforms, a rich slate of great entertainment and further globalization of our business.”

Current Highlights (comparisons are to the quarter ended December 31, 2003, unless otherwise stated)

• Net revenue for the quarter: North America—down 8 percent to $692 million; Europe—up 1 percent to $666 million; Asia Pacific, including Japan, up 9 percent to $70 million. Reported net revenue increased by approximately $47 million or 3 percent due to changes in foreign currency rates.

• Need for Speed Underground 2 sold over 8.4 million copies. The Need for Speed franchise has now surpassed $1 billion in life-to-date sales.

• FIFA 2005 sold over 4.5 million copies.

• EA repurchased656 thousand shares of its common stock during the quarter.

• The Company had 27 platinum titlesin the calendar year.

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• The Sims franchise sold more than 16 million copiesin the calendar year.

• The Need for Speed franchise sold more than 15 million copiesin the calendar year.

• The Company completed its acquisition of Criterion Software.

• EA entered into an agreement to purchase approximately 19.9 percent of Ubisoft for a purchase price of 19.69 Euros per share or approximately $90 million in total.

• EA has recently completed its tender offer for shares of Digital Illusions, C.E. at 61 Swedish Kroners or approximately $8.71 per share.

Business Outlook

The following forward-looking statements reflect expectations as of January 25, 2005. Results may be materially different and are affected by many factors, such as changes in foreign exchange rates, the overall global economy, the popular appeal of our products, our effective tax rate, development delays, our ability to secure key licenses and other factors detailed in this release and in our annual and quarterly SEC filings.

Fiscal Year Expectations—Ending March 31, 2005

• Net revenue is expected to be between $3.275 and $3.325 billion—as compared to $2.957 billion for fiscal 2004.

• Non-GAAP diluted earnings per share are expected to be between $1.90 and $1.95—as compared to $1.84 for fiscal 2004. This range does not factor in eight cents of estimated charges related principally to our acquisition of Criterion Software and tender offer for Digital Illusions C.E.

• GAAP diluted earnings per share are expected to be between $1.82 and $1.87—as compared to $1.87 for fiscal 2004.

Our expected results include the projected impact of our share repurchase program.

Non-GAAP Financial Measures

Electronic Arts uses non-GAAP measures of operating income, net income and diluted earnings per share. These non-GAAP measures exclude the following items, including any related tax effect, from the Company’s statement of operations:

• Amortization of intangibles

• Employee stock-based compensation

• Restructuring and asset impairment charges

• Acquired in-process technology

• Other-than-temporary impairment of investments in affiliates

In addition, other significant unforeseeable and non-recurring items may occur from time to time that require an adjustment to these non-GAAP measures. For example, during the fourth quarter of fiscal 2004, a $20 million non-recurring benefit to the Company’s income tax expense was included in the GAAP results but excluded from the non-GAAP results. When these items occur, the accounting impact will become a reconciling item between the GAAP results and these non-GAAP measures. In addition, they will be described in the reconciliation of GAAP to non-GAAP results included as part of the supplemental disclosures to the related release.

The Company believes that excluding these items is useful for illustrating and explaining operating results and comparisons to prior periods. Management considers these non-GAAP measures in its decision-making to facilitate more relevant operating comparisons.

A reconciliation of GAAP operating income to non-GAAP operating income; GAAP net income to non-GAAP net income; and GAAP diluted earnings per share to non-GAAP diluted earnings per share are included as part of the supplemental disclosures to this release.

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Conference Call

Electronic Arts will host a conference call on January 25, 2005 at 2:00 pm PT (5:00 pm ET) to review the results for the Company’s third quarter ended December 31, 2004. Listeners may access the conference call live via webcast (http://investor.ea.com). A webcast archive of the conference call will be available for one year at http://investor.ea.com.

Some statements set forth in this release, including those under the heading “Business Outlook,” contain forward-looking statements that involve risks and uncertainties. Statements including words such as “anticipate”, “believe” or “expect” and statements in the future tense are forward-looking statements. These forward-looking statements are subject to business and economic risks and actual events or actual future results could differ materially from those set forth in the forward-looking statements due to such risks and uncertainties. Some of the factors which could cause our results to differ materially from our expectations include the following: our ability to predict consumer preferences among competing hardware platforms; the seasonality and cyclical nature of the interactive game segment; timely development and release of our products; our ability to secure licenses to valuable entertainment properties on favorable terms; consumer spending trends; competition in our industry; our ability to attract and retain key personnel; changes in effective tax rates; adoption of new accounting regulations and standards; potential regulation of our products in key territories; developments in the law regarding protection of our products; fluctuations in foreign exchange rates; and other factors described in our Annual Report on Form 10-K for the year ended March 31, 2004 and in our Form 10-Q for the quarter ended September 30, 2004. We do not intend to update these forward-looking statements, including those made under the “Business Outlook” heading.

Note to Editors: Need for Speed, The Sims, The Urbz, Sims in the City and John Madden Football are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. The Lord of the Rings and the names of the characters, items, events and places therein are trademarks of the Saul Zaentz Company d/b/a Tolkien Enterprises under license to New Line Productions, Inc. GoldenEye Rogue Agent is a trademark of Danjaq, LLC and United Artists Corporation. NBA, NFL, Tiger Woods, PGA TOUR and FIFA are trademarks of their respective owners and used with permission. All other trademarks are the property of their respective owners.

For additional information, please contact:

Tricia Gugler Director, Investor Relations 650-628-7327 Jeff Brown Vice President, Corporate Communications 650-628-7922

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

	Three Months Ended December 31,				Nine Months Ended December 31,
	2004		2003		2004		2003
Net revenue	$	1,427,851	$	1,475,323	$	2,575,220	$	2,358,709
Cost of goods sold		502,763		513,255		963,429		876,980
Gross profit		925,088		962,068		1,611,791		1,481,729
Operating expenses:
Marketing and sales		132,422		180,174		303,160		303,299
General and administrative		77,998		71,992		155,095		138,784
Research and development		185,155		151,175		472,636		355,790
Amortization of intangibles		830		623		2,075		2,113
Acquired in-process technology		9,400		—		9,400		—
Restructuring charges		—		596		388		596
Total operating expenses		405,805		404,560		942,754		800,582
Operating income		519,283		557,508		669,037		681,147
Interest and other income, net		22,649		948		43,991		14,927
Income before provision for income taxes		541,932		558,456		713,028		696,074
Provision for income taxes		166,832		166,160		216,450		208,822
Net income	$	375,100	$	392,296	$	496,578	$	487,252
Net income:
Basic	$	375,100	$	392,296	$	496,578	$	487,252
Diluted	$	375,100	$	392,296	$	496,578	$	487,252
Earnings per share:
Basic	$	1.23	$	1.32	$	1.63	$	1.66
Diluted	$	1.18	$	1.26	$	1.57	$	1.59
Number of shares used in computation:
Basic		305,632		297,787		303,932		294,001
Diluted		316,833		311,463		316,157		306,737

Non-GAAP Results (in thousands, except per share data)

The following table shows the Company’s non-GAAP results reconciled to the Generally Accepted Accounting Principles (“GAAP”) Condensed Consolidated Statements of Operations. The Company’s non-GAAP results do not include amortization of intangibles, employee stock-based compensation, acquired in-process technology, restructuring charges, asset impairment charges, and other-than-temporary impairment of investments in affiliates and their related income tax effect.

	Three Months Ended December 31,					Nine Months Ended December 31,
	2004		2003			2004			2003
Net income	$	375,100	$	392,296		$	496,578		$	487,252
Amortization of intangibles		830		623			2,075			2,113
COGS amortization of intangibles		1,046		—			1,046			—
Employee stock-based compensation		4,020		—			4,020			—
Acquired in-process technology		9,400		—			9,400			—
Restructuring charges		—		596			388			596
Income taxes effect on the above items		236		(351	)		(238	)		(813	)
Non-GAAP net income	$	390,632	$	393,164		$	513,269		$	489,148
Non-GAAP diluted earnings per share	$	1.23	$	1.26		$	1.62		$	1.59
Number of shares used in diluted earnings per share computation		316,833		311,463			316,157			306,737

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

	December 31, 2004		March 31, 2004(a)
ASSETS
Current assets:
Cash, cash equivalents and short-term investments	$	2,564,801	$	2,414,346
Marketable equity securities		4,347		1,225
Receivables, net of allowances of $206,272 and $154,682, respectively		892,133		211,916
Inventories		84,424		55,143
Deferred income taxes		86,449		84,312
Other current assets		183,229		161,867
Total current assets		3,815,383		2,928,809
Property and equipment, net		329,010		298,073
Investment in affiliates		24,918		14,332
Goodwill		122,166		91,977
Other intangibles, net		37,563		18,468
Long-term deferred income taxes		46,666		40,755
Other assets		60,375		71,612
Total Assets	$	4,436,081	$	3,464,026
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	196,409	$	114,087
Accrued and other liabilities		867,814		630,138
Total current liabilities		1,064,223		744,225
Other liabilities		36,996		41,443
Total liabilities		1,101,219		785,668
Stockholders’ equity:
Common stock		3,070		3,015
Paid-in capital		1,310,305		1,153,680
Retained earnings		1,997,762		1,501,184
Accumulated other comprehensive income		23,725		20,479
Total stockholders’ equity		3,334,862		2,678,358
Total Liabilities and Stockholders’ Equity	$	4,436,081	$	3,464,026

^(a) Derived from audited financial statements.

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

	Three Months Ended December 31,						Nine Months Ended December 31,
	2004			2003			2004			2003
OPERATING ACTIVITIES
Net income	$	375,100		$	392,296		$	496,578		$	487,252
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		19,744			29,068			52,911			59,915
Equity in net income of investment in affiliates		(155	)		(292	)		(742	)		(405	)
Non-cash restructuring and asset impairment charges		—			596			—			596
Other-than-temporary impairment of investments in affiliate		—			—			—			589
Realized (gains)/ losses on investments and sale of property and equipment		(5,760	)		538			(9,666	)		583
Stock-based compensation		4,086			237			4,359			666
Tax benefit from exercise of stock options		9,776			1,676			34,914			41,845
Acquired in-process technology		9,400			—			9,400			—
Change in assets and liabilities:
Receivables, net		(519,402	)		(653,561	)		(687,619	)		(786,595	)
Inventories		(6,892	)		(25,651	)		(30,989	)		(26,057	)
Other assets		(41,225	)		(12,521	)		(14,635	)		6,542
Accounts payable		26,238			28,815			84,123			54,124
Accrued and other liabilities		265,996			317,644			221,398			268,037
Net cash provided by operating activities		136,906			78,845			160,032			107,092
INVESTING ACTIVITIES
Capital expenditures		(37,240	)		(27,247	)		(82,579	)		(55,937	)
Proceeds from sale of property and equipment		130			25			15,680			113
Proceeds from sale of marketable equity securities		46			2			3,161			2
Purchase of investment in affiliates		(2,150	)		(350	)		(2,400	)		(350	)
Proceeds from sale of investment in affiliate		—			—			—			8,467
Proceeds from maturities and sales of short-term investments		84,438			725,606			896,959			1,273,398
Purchase of short-term investments		(589,503	)		(620,200	)		(2,247,608	)		(1,890,779	)
Purchase of minority interest		—			—			—			(2,513	)
Acquisition of subsidiary, net of cash acquired		(59,490	)		(958	)		(59,502	)		(958	)
Net cash provided by (used in) investing activities		(603,769	)		76,878			(1,476,289	)		(668,557	)
FINANCING ACTIVITIES
Proceeds from sale of common stock through employee stock plans and other plans		61,264			26,385			146,772			166,260
Repurchase and retirement of common stock		(30,794	)		—			(30,794	)		—
Repurchase of Class B common stock		—			—			—			(225	)
Repayment of Class B notes receivable		—			—			—			128
Dividend to joint venture		—			—			—			(2,587	)
Net cash provided by financing activities		30,470			26,385			115,978			163,576
Effect of foreign exchange on cash and cash equivalents		13,606			14,777			13,633			20,904
Increase (decrease) in cash and cash equivalents		(422,787	)		196,885			(1,186,646	)		(376,985	)
Beginning cash and cash equivalents		1,386,026			376,125			2,149,885			949,995
Ending cash and cash equivalents		963,239			573,010			963,239			573,010
Short-term investments		1,601,562			1,251,659			1,601,562			1,251,659
Ending cash, cash equivalents and short-term investments	$	2,564,801		$	1,824,669		$	2,564,801		$	1,824,669

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations

(in millions, except per share data)

The following tables show the Company’s non-GAAP results reconciled to the Generally Accepted Accounting Principles (“GAAP”) Condensed Consolidated Statements of Operations. The Company’s non-GAAP results do not include amortization of intangibles, employee stock-based compensation, acquired-in-process technology, restructuring charges, asset impairment charges, and other-than-temporary impairment of investments in affiliates, and their related income tax effect. The three months and year ended March 31, 2004 also exclude the impact of a one-time income tax adjustment.

	Q3 FY04			Q4 FY04			Q1 FY05			Q2 FY05			Q3 FY05
QUARTERLY RESULTS
Operating Income
GAAP operating income	$	558		$	94		$	25		$	125		$	519
Adjustments:
Amortization of intangibles		1			1			1			—			1
COGS amortization of intangibles		—			—			—			—			1
Employee stock-based compensation		—			—			—			—			4
Acquired-in-process technology		—			—			—			—			10
Restructuring charges		—			9			—			—			—
Asset impairment charges		—			—			—			—			—
Total adjustments		1			10			1			—			16
Non-GAAP operating income	$	559		$	104		$	26		$	125		$	535
Non-GAAP operating income margin - % of net revenue		38	%		17	%		6	%		18	%		37	%
Net Income
GAAP net income	$	392		$	90		$	24		$	97		$	375
Adjustments:
Amortization of intangibles		1			1			1			1			1
COGS amortization of intangibles		—			—			—			—			1
Employee stock-based compensation		—			—			—			—			4
Acquired-in-process technology		—			—			—			—			10
Restructuring charges		—			9			—			—			—
Asset impairment charges		—			—			—			—			—
Other-than-temporary impairment of investment in affiliates		—			—			—			—			—
Income taxes effect on the above items		—			(3	)		—			—			—
Income tax adjustment		—			(20	)		—			—			—
Total adjustments		1			(13	)		1			1			16
Non-GAAP net income	$	393		$	77		$	25		$	98		$	391
Non-GAAP net income margin - % of net revenue		27	%		13	%		6	%		14	%		27	%
GAAP diluted earnings per share	$	1.26		$	0.29		$	0.08		$	0.31		$	1.18
Non-GAAP diluted earnings per share	$	1.26		$	0.25		$	0.08		$	0.31		$	1.23
Shares used in diluted earnings per share computation		311			313			316			316			317
TRAILING TWELVE MONTH RESULTS
Operating Income
GAAP operating income	$	691		$	776		$	779		$	802		$	763
Adjustments:
Amortization of intangibles		4			3			4			3			3
COGS amortization of intangibles		—			—			—			—			1
Employee stock-based compensation		—			—			—			—			4
Acquired-in-process technology		—			—			—			—			10
Restructuring charges		7			9			9			9			9
Asset impairment charges		64			—			—			—			—
Total adjustments		75			12			13			12			27
Non-GAAP operating income	$	766		$	788		$	792		$	814		$	790
Non-GAAP operating income margin - % of net revenue		27	%		27	%		26	%		25	%		25	%

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations

(in millions, except per share data)

The following tables show the Company’s non-GAAP results reconciled to the Generally Accepted Accounting Principles (“GAAP”) Condensed Consolidated Statements of Operations. The Company’s non-GAAP results do not include amortization of intangibles, employee stock-based compensation, acquired-in-process technology, restructuring charges, asset impairment charges, and other-than-temporary impairment of investments in affiliates, and their related income tax effect. The three months and year ended March 31, 2004 also exclude the impact of a one-time income tax adjustment.

	Q3 FY04			Q4 FY04			Q1 FY05			Q2 FY05			Q3 FY05
TRAILING TWELVE MONTH RESULTS
Net Income
GAAP net income	$	496		$	577		$	583		$	604		$	587
Adjustments:
Amortization of intangibles		4			3			3			4			3
COGS amortization of intangibles		—			—			—			—			1
Employee stock-based compensation		—			—			—			—			4
Acquired-in-process technology		—			—			—			—			10
Restructuring charges		7			10			9			9			9
Asset impairment charges		64			—			—			—			—
Other-than-temporary impairment of investment in affiliates		—			—			—			—			—
Income taxes effect on the above items		(22	)		(4	)		(3	)		(4	)		(4	)
Income tax adjustment		—			(20	)		(20	)		(20	)		(20	)
Total adjustments		53			(11	)		(11	)		(11	)		3
Non-GAAP net income	$	549		$	566		$	572		$	593		$	590
Non-GAAP net income margin - % of net revenue		19	%		19	%		19	%		18	%		19	%
GAAP diluted earnings per share	$	1.60		$	1.87		$	1.88		$	1.94		$	1.86
Non-GAAP diluted earnings per share	$	1.77		$	1.84		$	1.84		$	1.90		$	1.87

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ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

($ in millions, except per share data, SKU count and Headcount)

	Q3 FY04			Q4 FY04			Q1 FY05			Q2 FY05			Q3 FY05			YOY% Growth
CONSOLIDATED FINANCIAL DATA
Net revenue		1,475			598			432			716			1,428		(3	)%
Net revenue - trailing twelve months (“TTM”)		2,822			2,957			3,035			3,221			3,174		12	%
Gross profit		962			372			255			432			925		(4	)%
Gross margin - % of net revenue		65	%		62	%		59	%		60	%		65	%
Gross profit - TTM		1,780			1,854			1,906			2,021			1,984		11	%
Gross margin - TTM % of net revenue		63	%		63	%		63	%		63	%		63	%
Operating income		558			94			25			125			519		(7	)%
Operating income margin - % of net revenue		38	%		16	%		6	%		17	%		36	%
Operating income - TTM		691			776			779			802			763		11	%
Operating income margin - TTM % of net revenue		24	%		26	%		26	%		25	%		24	%
Net income		392			90			24			97			375		(4	)%
Diluted earnings per share	$	1.26		$	0.29		$	0.08		$	0.31		$	1.18		(6	)%
Net income - TTM		496			577			583			604			587		18	%
Diluted earnings per share - TTM	$	1.60		$	1.87		$	1.88		$	1.94		$	1.86		16	%
Non-GAAP operating income(a)		559			104			26			125			535		(4	)%
Non-GAAP operating income margin - % of net revenue		38	%		17	%		6	%		18	%		37	%
Non-GAAP operating income - TTM(a)		766			788			792			814			790		3	%
Non-GAAP operating income margin - TTM % of net revenue		27	%		27	%		26	%		25	%		25	%
Non-GAAP net income(a)		393			77			25			98			391		(1	)%
Non-GAAP diluted earnings per share(a)	$	1.26		$	0.25		$	0.08		$	0.31		$	1.23		(2	)%
Non-GAAP net income - TTM(a)		549			566			572			593			590		8	%
Non-GAAP diluted earnings per share - TTM(a)	$	1.77		$	1.84		$	1.84		$	1.90		$	1.87		6	%
CASH FLOW DATA
Operating cash flow		79			562			(66	)		89			137		74	%
Operating cash flow - TTM		538			669			638			664			722		34	%
Capital expenditures		27			34			26			19			37		37	%
Capital expenditures - TTM		81			90			104			106			116		44	%
BALANCE SHEET DATA
Cash, cash equivalents and short term investments		1,825			2,414			2,369			2,490			2,565		41	%
Marketable equity securities		2			1			2			—			4		108	%
Receivables, net		837			212			170			379			892		7	%
Inventories		65			55			53			79			84		30	%
OTHER
Employees		4,528			4,773			4,813			5,104			5,669		25	%
Diluted weighted-average shares		311			313			316			316			317

^(a) Please see attached Unaudited Reconciliation of GAAP to Non-GAAP Condensed Consolidated Statements of Operations.

9

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Financial Information and Business Metrics

($ in millions, except per share data, SKU count and Headcount)

	Q3 FY04		Q4 FY04		Q1 FY05		Q2 FY05		Q3 FY05		YOY % Growth
GEOGRAPHIC REVENUE MIX
North America Revenue	753		299		211		473		692		(8	)%
International Revenue	722		299		221		243		736		2	%
Europe Revenue	658		249		190		210		666		1	%
Asia Pacific Revenue	43		22		18		21		46		7	%
Japan Revenue	21		28		13		12		24		15	%
Net Revenue	1,475		598		432		716		1,428		(3	)%
GEOGRAPHIC REVENUE MIX - as a % of Net Revenue
North America Revenue	51	%	50	%	49	%	66	%	48	%
International Revenue	49	%	50	%	51	%	34	%	52	%
Europe Revenue	45	%	41	%	44	%	29	%	47	%
Asia Pacific Revenue	3	%	4	%	4	%	3	%	3	%
Japan Revenue	1	%	5	%	3	%	2	%	2	%
Net Revenue	100	%	100	%	100	%	100	%	100	%
PLATFORM REVENUE MIX
Sony PlayStation 2	732		244		162		312		661		(10	)%
PC	220		76		67		141		239		9	%
Xbox	205		80		57		142		233		14	%
Nintendo GameCube	104		50		26		38		109		5	%
Mobile Platforms	57		14		18		10		55		(4	)%
Co-publishing and Distribution	122		112		67		49		79		(36	)%
Subscription Services	12		13		13		13		14		17	%
Advertising, Programming, Licensing and Other	23		9		22		11		38		59	%
Net Revenue	1,475		598		432		716		1,428		(3	)%
PLATFORM REVENUE MIX - as a % of Net Revenue
Sony PlayStation 2	49	%	41	%	38	%	43	%	46	%
PC	15	%	13	%	15	%	20	%	17	%
Xbox	14	%	13	%	13	%	20	%	16	%
Nintendo GameCube	7	%	9	%	6	%	5	%	8	%
Mobile Platforms	4	%	2	%	4	%	1	%	4	%
Co-publishing and Distribution	8	%	19	%	16	%	7	%	5	%
Subscription Services	1	%	2	%	3	%	2	%	1	%
Advertising, Programming, Licensing and Other	2	%	1	%	5	%	2	%	3	%
Net Revenue	100	%	100	%	100	%	100	%	100	%
Platform SKU Release Mix
Sony PlayStation 2	11		4		3		9		9		(18	)%
PC	7		1		3		6		7		0	%
Xbox	11		3		3		8		9		(18	)%
Nintendo GameCube	9		3		1		7		7		(22	)%
Mobile Platforms	9		—		1		2		7		(22	)%
Online and Other	1		—		—		1		1		0	%
Total SKUs	48		11		11		33		40		(17	)%

10

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Fact Sheet for Q3 Fiscal 2005

Q3 Product Releases	Platform
· FIFA Soccer 2005	PlayStation®2
· NBA LIVE 2005	PlayStation 2
· NCAA® March Madness® 2005	PlayStation 2
· Need for Speed™ Underground 2	PlayStation 2
· TOTAL CLUB MANAGER 2005	PlayStation 2
· The Lord of the Rings™, The Third Age™	PlayStation 2
· NFL STREET 2: Unleashed	PlayStation 2
· GoldenEye: Rogue Agent™	PlayStation 2
· The Urbz™: Sims in the City™	PlayStation 2
· FIFA Soccer 2005	PlayStation®
· FIFA Soccer 2005	Xbox®
· NBA LIVE 2005	Xbox
· NCAA March Madness 2005	Xbox
· Need for Speed Underground 2	Xbox
· TOTAL CLUB MANAGER 2005	Xbox
· The Lord of the Rings, The Third Age	Xbox
· NFL STREET 2: Unleashed	Xbox
· GoldenEye: Rogue Agent	Xbox
· The Urbz: Sims in the City	Xbox
· FIFA Soccer 2005	Nintendo GameCube™
· NBA LIVE 2005	Nintendo GameCube
· Need for Speed Underground 2	Nintendo GameCube
· The Lord of the Rings, The Third Age	Nintendo GameCube
· NFL STREET 2: Unleashed	Nintendo GameCube
· GoldenEye: Rogue Agent	Nintendo GameCube
· The Urbz: Sims in the City	Nintendo GameCube
· FIFA Soccer 2005	PC
· NBA LIVE 2005	PC
· Need for Speed Underground 2	PC
· TOTAL CLUB MANAGER 2005	PC
· Medal of Honor Pacific Assault™	PC
· Medal of Honor Pacific Assault Director’s Edition	PC
· The Lord of the Rings™, The Battle for Middle-earth™	PC
· FIFA Soccer 2005	Game Boy® Advance
· Need for Speed Underground 2	Game Boy Advance
· The Lord of the Rings, The Third Age	Game Boy Advance
· The Urbz: Sims in the City	Game Boy Advance
· Tiger Woods PGA TOUR® 2005	Nintendo DS™
· Madden NFL 2005	Nintendo DS
· The Urbz: Sims in the City	Nintendo DS
Co-pub, International only and Others (not in SKU count)
· FIFA Soccer 2005	Ngage
· Total Football (Japanese Soccer)	PlayStation 2

All trademarks are the property of their respective owners.

11

ELECTRONIC ARTS INC. AND SUBSIDIARIES

Unaudited Supplemental Schedule of Earnings Adjusted for Stock-Based Compensation

(in millions, except per share data)

Had the Company’s stock-based compensation plans been measured on the estimated fair value at the grant dates in accordance with the provisions of Statement of Financials Accounting Standards No. 123, “Accounting for Stock-Based Compensation”, we estimate that our reported net income and net earnings per share would have been the pro forma amounts indicated below:

	Three Months Ended December 31,						Nine Months Ended December 31,
	2004			2003			2004			2003
Net income - as reported	$	375		$	392		$	497		$	487
Stock-based compensation		(17	)		(25	)		(60	)		(69	)
Net income - pro forma	$	358		$	367		$	437		$	418
Net earnings per share:
As reported - basic	$	1.23		$	1.32		$	1.63		$	1.66
Pro Forma - basic	$	1.17		$	1.23		$	1.44		$	1.42
As reported - diluted	$	1.18		$	1.26		$	1.57		$	1.59
Pro Forma - diluted	$	1.14		$	1.19		$	1.39		$	1.38