EA REPORTS FIRST QUARTER FISCAL 2008 RESULTS Harry Potter and the Order of the Phoenix -- Two Million Copies Sold in One Week Ten New Properties to Debut in Fiscal 2008 REDWOOD CITY, CA – August 1, 2007 – Electronic Arts (NASDAQ: ERTS) today announced preliminary financial results for its fiscal first quarter ended June 30, 2007. Fiscal First Quarter Results (comparisons are to the quarter ended June 30, 2006) Net revenue for the quarter was $395 million, down four percent as compared with $413 million for the prior year. Beginning this quarter, EA no longer charges for hosting services related to certain online-enabled packaged goods games. As a result, the Company recognizes revenue from the sale of these games over the estimated hosting service period. This change resulted in a $36 million sequential increase in deferred net revenue as of June 30, 2007, which will be recognized in future periods. Sales were driven by Harry Potter and the Order of the Phoenix™, Command & Conquer 3 Tiberium WarsTM, The SimsTM 2 Pets, Need for Speed™ Carbon and The Sims 2. Gross profit for the quarter was $229 million, down seven percent year-over-year. Net loss for the quarter was $132 million as compared with a net loss of $81 million for the prior year. Diluted loss per share was $0.42 as compared with $0.26 for the prior year. Non-GAAP diluted loss per share was $0.22 as compared with a non-GAAP loss per share of $0.12 for the prior year. (Please see Non-GAAP Financial Measures and reconciliation information included in this release.) Trailing twelve month operating cash flow was $243 million as compared with $589 million a year ago. The Company ended the quarter with cash and short term investments of $2.2 billion. “In the last three months we announced the reorganization of our business into four Labels and welcomed Kathy Vrabeck and Peter Moore to EA,” said John Riccitiello, Chief Executive Officer. “I’m pleased that our team, structure and strategy are coming together quickly.” “Looking ahead, we have a strong slate,” said Warren Jenson, Chief Financial and Administrative Officer. “In the balance of the fiscal year, we plan to launch our full EA SPORTS lineup, Need for Speed Pro Street, MySims, Medal of Honor Airborne and ten new properties, including Army of Two, The Simpsons, SKATE, Boogie and Rock Band.” Highlights EA to launch 10 new properties this fiscal year – Boogie™, EA Playground™, Army of Two™, SKATE, Warhammer® Online, The Simpsons™ Game, Smarty Pants, a Wii™ title jointly developed with Steven Spielberg, Rock Band™ and Crysis™. At the E3 Summit – EA won six Best of E3 Awards for Madden NFL 08, Burnout™ Paradise, Crysis and Rock Band. EA announced the reorganization of its business into four Labels: EA SPORTS™, EA Games, EA Casual Entertainment and The Sims; each Label to operate with dedicated studio and marketing teams focused on consumer-driven priorities. Kathy Vrabeck joined EA as president of the newly announced EA Casual Entertainment Label to focus on casual and family oriented games. Peter Moore is joining EA in September as president of the EA SPORTS Label. EA continued its expansion in Asia with a 15 percent equity investment in Chinese online game operator The9 Limited and an agreement to bring EA SPORTS FIFA Online to China. In addition, the Company completed its 19 percent equity investment in Korea- based online gaming company, Neowiz Corporation. Business Outlook The following forward-looking statements, as well as those made above, reflect expectations as of August 1, 2007. Results may be materially different and are affected by many factors, such as: consumer demand for next-generation consoles and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; consumer demand for games for prior-generation consoles, particularly the PlayStation®2 computer entertainment system; the popular appeal of EA’s products; development delays on EA’s products; changes in foreign exchange rates; the impact of EA’s reorganization on its operations; the overall global economy; competition in the industry; EA’s effective tax rate and other factors detailed in this release and in EA’s annual and quarterly SEC filings. Fiscal Year Expectations – Ending March 31, 2008 Net revenue is expected to be between $3.2 and $3.5 billion – up $100 million from the Company’s previous guidance. Net revenue excluding the impact of the change in deferred net revenue (packaged goods and digital content) is expected to be between $3.65 and $3.85 billion – up $50 million from the Company’s previous guidance. GAAP diluted loss per share is expected to be between ($0.63) and ($0.10) – up from the Company’s previous guidance of ($0.77) to ($0.23). Non-GAAP diluted earnings per share are expected to be between $0.90 and $1.20 – consistent with the Company’s previous guidance. Expected non-GAAP diluted earnings per share exclude the following items from expected GAAP diluted loss per share: approximately $0.82 to $1.05 for the impact of the change in deferred net revenue (packaged goods and digital content); approximately $0.31 of estimated stock-based compensation; approximately $0.13 of amortization of intangible assets; and approximately $0.04 of estimated restructuring charges related to the reorganization and establishment of an international publishing headquarters in Geneva. Fiscal Second Quarter Expectations – Ending September 30, 2007 Net revenue is expected to be between $465 and $570 million. Net revenue excluding the impact of the change in deferred net revenue (packaged goods and digital content) is expected to be between $825 and $910 million. GAAP diluted loss per share is expected to be between ($0.92) and ($0.76). Non-GAAP diluted earnings per share are expected to be between $0.10 and $0.20. Expected non-GAAP earnings per share excludes the following items from expected GAAP diluted loss per share: approximately $0.84 to $0.90 for the impact of the change in deferred net revenue (packaged goods and digital content); approximately $0.08 of estimated stock-based compensation; approximately $0.03 of amortization of intangible assets; and approximately $0.01 of restructuring charges related to the reorganization and establishment of an international publishing headquarters in Geneva. Conference Call Electronic Arts will host a conference call today at 2:00 pm PT (5:00 pm ET) to review its results for the first quarter fiscal 2008 ended June 30, 2007 and its outlook for the future. During the course of the call, Electronic Arts may also disclose material developments affecting its business and/or financial performance. Listeners may access the conference call live through the following dial-in number: (800) 946-0742, access code 220497, or via webcast: http://investor.ea.com. A dial-in replay of the conference call will be provided until August 8, 2007 at (719) 457-0820, access code 220497. A webcast archive of the conference call will be available for one year at http://investor.ea.com. Non-GAAP Financial Measures To supplement the Company’s unaudited condensed consolidated financial statements presented in accordance with GAAP, Electronic Arts uses certain non-GAAP measures of financial performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP, and may be different from non-GAAP financial measures used by other companies. In addition, these non-GAAP measures have limitations in that they do not reflect all of the amounts associated with the Company’s results of operations as determined in accordance with GAAP. The non-GAAP financial measures used by Electronic Arts include: non-GAAP net revenue, non-GAAP gross profit, non-GAAP operating income (loss), non-GAAP net income (loss) and historical and estimated non-GAAP diluted earnings (loss) per share. These non-GAAP financial measures exclude the following items from the Company’s unaudited condensed consolidated statements of operations: The impact of the change in deferred net revenue (packaged goods and digital content) Acquired in-process technology Amortization of intangibles Certain litigation expenses Restructuring charges Stock-based compensation Income tax adjustments (consisting of the income tax effect of the items listed above and certain one-time income tax adjustments) Electronic Arts may consider whether other significant non-recurring items that arise in the future should also be excluded in calculating the non-GAAP financial measures it uses. Electronic Arts believes that these non-GAAP financial measures, when taken together with the corresponding GAAP financial measures, provide meaningful supplemental information regarding the Company’s performance by excluding certain items that may not be indicative of the Company’s core business, operating results or future outlook. Electronic Arts’ management uses, and believes that investors benefit from referring to, these non-GAAP financial measures in assessing the Company’s operating results both as a consolidated entity and at the business unit level, as well as when planning, forecasting and analyzing future periods. These non-GAAP financial measures also facilitate comparisons of the Company’s performance to prior periods. In addition to the reasons stated above, which are generally applicable to each of the items Electronic Arts excludes from its non-GAAP financial measures, the Company believes it is appropriate to exclude certain items for the following reasons: Amortization of Intangibles. When analyzing the operating performance of an acquired entity, Electronic Arts’ management focuses on the total return provided by the investment (i.e., operating profit generated from the acquired entity as compared to the purchase price paid) without taking into consideration any allocations made for accounting purposes.