May 13, 2008

EA Reports Fourth Quarter and Fiscal Year 2008 Results

Record GAAP Net Revenue of $3.665 Billion and Non-GAAP Net Revenue of $4.020 Billion in Fiscal 2008

More Than Fifteen New Games Scheduled for Release in Fiscal 2009

EA Reports Fourth Quarter and Fiscal Year 2008 Results<br>

REDWOOD CITY, Calif.--(BUSINESS WIRE)--May 13, 2008--Electronic Arts (NASDAQ:ERTS) today announced preliminary financial results for its fiscal fourth quarter and fiscal year ended March 31, 2008.

Full Year Results

Net revenue for the fiscal year ended March 31, 2008 was $3.665 billion, up 19 percent as compared with $3.091 billion for the prior year. Beginning in fiscal 2008, EA no longer charges for its service related to certain online-enabled packaged goods games. As a result, the Company recognizes revenue from the sale of these games over the estimated service period. The Company ended the year with $387 million in deferred net revenue related to its service for certain online-enabled packaged goods games, which will be recognized in future periods.

Non-GAAP net revenue(1) was $4.020 billion, up 30 percent as compared with $3.091 billion for the prior year.

EA had 27 titles that sold more than one million copies in the year as compared with 24 titles in the prior year.

Net loss for the year was $454 million as compared with net income of $76 million for the prior year. Diluted loss per share was $1.45 as compared with diluted earnings per share of $0.24 for the prior year.

Non-GAAP net income(1) was $339 million as compared with $247 million a year ago, up 37 percent year-over-year. Non-GAAP diluted earnings per share were $1.06 as compared with $0.78 for the prior year.

Trailing-twelve-month operating cash flow was $338 million as compared with $397 million a year ago. The Company ended the year with cash and short-term investments of $2.287 billion.

Fiscal Fourth Quarter Results (comparisons are to the quarter ended March 31, 2007)

Net revenue for the fourth quarter was $1.127 billion, up 84 percent as compared with $613 million for the prior year. During the quarter, EA had a net benefit of $208 million related to the recognition of deferred net revenue for certain online enabled packaged goods games.

Non-GAAP net revenue(1) was $919 million, up 50 percent as compared with $613 million for the prior year. Sales were driven by the launches of ARMY OF TWO and Burnout Paradise as well as the continued strength of Rock Band.

Net loss for the quarter was $94 million as compared with a net loss of $25 million for the prior year. Diluted loss per share was $0.30 as compared with diluted loss per share of $0.08 for the prior year.

Non-GAAP net income(1) was $30 million as compared with $19 million a year ago. Non-GAAP diluted earnings per share were $0.09 as compared with $0.06 for the prior year.

"A year ago, we committed to an aggressive change agenda at EA. Our employees stepped up to the challenge and we finished fiscal year 2008 with non-GAAP revenue up 30% to $4 billion -- a record for any third-party publisher. Our operating margins were flat to our prior year. On balance, we're very pleased with our revenue growth, but not yet happy with our profit margins," said John Riccitiello, Chief Executive Officer. "In fiscal 2009, we expect to deliver another $1 billion in revenue growth and to double our operating profit on the strength of our slate of titles."

Highlights for the Year (comparisons are to the fiscal year ended March 31, 2007)

-- In fiscal 2008, EA was the number one publisher across all platforms in North America with 19 percent share and in Europe with 20 percent share.

-- On the Wii, EA was the number one third-party publisher in Europe in fiscal 2008 with 15 percent share -- up eight points from a year ago; in North America, EA had 11 percent share -- up one point from a year ago.

-- EA Partners posted its strongest year ever driven by Rock Band and Half Life® 2: Orange Box.

-- EA had 15 double platinum (sold over 2 million copies) titles in the year -- up from ten a year ago.

-- The Sims franchise sold over 100 million copies life to date.

-- EA strengthened its wholly-owned portfolio -- by launching six new games -- MySims, ARMY OF TWO, SKATE, Boogie, EA Playground and Smarty Pants.

-- Burnout Paradise, ARMY OF TWO and the recently launched Boom Blox debuted with strong quality ratings from critics.

-- Pogo has surpassed the $100 million mark in revenue - growing 41 percent year-over-year.

-- EA signed an agreement with Hasbro for the exclusive rights to create digital games based upon intellectual properties including MONOPOLY, SCRABBLE, YAHTZEE, NERF, TONKA and LITTLEST PET SHOP.

-- EA acquired BioWare Corp. and Pandemic Studios in January 2008, adding strong development talent and ten new franchises.

-- EA's December 2007 employee satisfaction survey showed significant improvement over the last appraisal in 2004. Results included a double-digit gain in employee engagement.

Business Outlook

The following forward-looking statements, as well as those made above, reflect expectations as of May 13, 2008. Results may be materially different and are affected by many factors, including: development delays on EA's products; competition in the industry; changes in anticipated costs, expected savings and impact on EA's operations of the Company's reorganization plan; consumer demand for console hardware and the ability of the console manufacturers to produce an adequate supply of consoles to meet that demand; consumer demand for games for legacy consoles, particularly the PlayStation®2; the financial impact of potential future acquisitions by EA, including the potential acquisition of Take-Two Interactive Software, Inc.; the popular appeal of EA's products; changes in foreign exchange rates; the overall global economy; 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, 2009

-- GAAP net revenue is expected to be between $4.9 and $5.15 billion.
-- Non-GAAP net revenue(1) is expected to be between $5.0 and $5.3 billion.
-- GAAP diluted earnings per share are expected to be between $0.25 and $0.52.
-- Non-GAAP diluted earnings per share(1) are expected to be between $1.30 and $1.70.
-- Expected non-GAAP net income(1) excludes the following pre-tax items from expected GAAP net income:
-- $100 to $150 million for the impact of the change in deferred net revenue (packaged goods and digital content),
-- $240 million of estimated stock-based compensation,
-- $65 million of amortization of intangible assets, and
-- $25 million of restructuring charges.
-- Non-GAAP tax expense is expected to be $85 to $95 million higher than GAAP tax expense.

Beginning in fiscal 2009, the Company will use a long-term normalized tax rate for evaluating operating performance, as well as planning, forecasting and analyzing future periods, and assessing the performance of its management team. Based on its current long-term projections, the Company intends to use a long-term normalized non-GAAP tax rate of 28 percent.

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 fourth quarter and fiscal 2008 ended March 31, 2008 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: (877) 856-1960, access code 220497, or via webcast: http://investor.ea.com.

A dial-in replay of the conference call will be provided until May 20, 2008 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.

(1) 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, if any, from the Company's unaudited condensed consolidated statements of operations:

-- Change in deferred net revenue (packaged goods and digital content)

-- Acquisition-related charges

-- Amortization of intangibles

-- Certain litigation expenses

-- Losses on strategic investments

-- Restructuring charges

-- Stock-based compensation

-- Income tax adjustments

Through the end of fiscal 2008, Electronic Arts made certain income tax adjustments to its non-GAAP financial measures to reflect the income tax effects of each of the items it excluded from its pre-tax non-GAAP financial measures, as well as certain discrete one-time income tax adjustments. This approach was consistent with how the Company evaluated operating performance, planned, forecasted and analyzed future periods, and assessed the performance of its management team.

Beginning in fiscal 2009, the Company will use a long-term normalized tax rate for evaluating operating performance, as well as planning, forecasting and analyzing future periods, and assessing the performance of its management team. Based on its current long-term projections, the Company intends to use a long-term normalized non-GAAP tax rate of 28 percent.

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. Because the purchase price for an acquisition necessarily reflects the accounting value assigned to intangible assets (including acquired in-process technology and goodwill), when analyzing the operating performance of an acquisition in subsequent periods, the Company's management excludes the GAAP impact of acquired intangible assets to its financial results. Electronic Arts believes that such an approach is useful in understanding the long-term return provided by an acquisition and that investors benefit from a supplemental non-GAAP financial measure that excludes the accounting expense associated with acquired intangible assets.

In addition, in accordance with GAAP, Electronic Arts generally recognizes expenses for internally-developed intangible assets as they are incurred, notwithstanding the potential future benefit such assets may provide. Unlike internally-developed intangible assets, however, and also in accordance with GAAP, the Company generally capitalizes the cost of acquired intangible assets and recognizes that cost as an expense over the useful lives of the assets acquired (other than goodwill, which is not amortized, and acquired in-process technology, which is expensed immediately, as required under GAAP). As a result of their GAAP treatment, there is an inherent lack of comparability between the financial performance of internally-developed intangible assets and acquired intangible assets. Accordingly, Electronic Arts believes it is useful to provide, as a supplement to its GAAP operating results, a non-GAAP financial measure that excludes the amortization of acquired intangibles.

Stock-Based Compensation. Electronic Arts adopted SFAS 123®, "Share-Based Payment" beginning in its fiscal year 2007. When evaluating the performance of its individual business units, the Company does not consider stock-based compensation charges. Likewise, the Company's management teams exclude stock-based compensation expense from their short and long-term operating plans. In contrast, the Company's management teams are held accountable for cash-based compensation and such amounts are included in their operating plans. Further, when considering the impact of equity award grants, Electronic Arts places a greater emphasis on overall shareholder dilution rather than the accounting charges associated with such grants.

Video game platforms have historically had a life cycle of four to six years, which causes the video game software market to be cyclical. The Company's management analyzes its business and operating performance in the context of these business cycles, comparing Electronic Arts' performance at similar stages of different cycles. For comparability purposes, Electronic Arts believes it is useful to provide a non-GAAP financial measure that excludes stock-based compensation in order to better understand the long-term performance of its core business.

Restructuring Charges. Although Electronic Arts has engaged in various restructuring activities in the past, each has been a discrete, extraordinary event based on a unique set of business objectives. Each of these restructurings has been unlike its predecessors in terms of its operational implementation, business impact and scope. The Company does not engage in restructuring activities on a regular basis or in the ordinary course of business. As such, the Company believes it is appropriate to exclude restructuring charges from its non-GAAP financial measures.

Change in Deferred Net Revenue (Packaged Goods and Digital Content). Beginning in fiscal 2008, Electronic Arts was no longer able to objectively determine the fair value of the online service included in certain of its packaged goods games and online content. As a result, the Company began recognizing the revenue from the sale of these games and content over the estimated online service period. Although Electronic Arts defers the recognition of a significant portion of its net revenue as a result of this change, there has been no adverse impact to its operating cash flow. Internally, Electronic Arts' management excludes the impact of the change in deferred net revenue related to packaged goods games and digital content in its non-GAAP financial measures when evaluating the Company's operating performance, when planning, forecasting and analyzing future periods, and when assessing the performance of its management team. The Company believes that excluding the impact of the change in deferred net revenue from its operating results is important to facilitate comparisons to prior periods during which the Company was able to objectively determine the fair value of the online service and not delay the recognition of significant amounts of net revenue related to online-enabled packaged goods.

In the financial tables below, Electronic Arts has provided a reconciliation of the most comparable GAAP financial measure to each of the historical non-GAAP financial measures used in this press release.

Forward-Looking Statements

Some statements set forth in this release, including the estimates under the headings "Business Outlook" contain forward-looking statements that are subject to change. Statements including words such as "anticipate", "believe", "estimate" or "expect" and statements in the future tense are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that could cause actual events or actual future results to differ materially from the expectations set forth in the forward-looking statements. Some of the factors which could cause the Company's results to differ materially from its expectations include the following: timely development and release of Electronic Arts' products; competition in the interactive entertainment industry; the Company's ability to successfully implement its reorganization plans; the consumer demand for, and the availability of an adequate supply of console hardware units (including the Xbox 360 video game and entertainment system, the PLAYSTATION®3 computer entertainment system and the Wii); consumer demand for software for legacy consoles, particularly the PlayStation 2; the Company's ability to predict consumer preferences among competing hardware platforms; the financial impact of potential future acquisitions by EA, including the potential acquisition of Take-Two Interactive Software, Inc.; the Company's ability to realize the anticipated benefits of its acquisition of VG Holding Corp.; consumer spending trends; the seasonal and cyclical nature of the interactive game segment; the Company's ability to manage expenses during fiscal year 2009 and beyond; the Company's ability to attract and retain key personnel; changes in the Company's effective tax rates; the performance of strategic investments; adoption of new accounting regulations and standards; potential regulation of the Company's products in key territories; developments in the law regarding protection of the Company's products; fluctuations in foreign exchange rates; the Company's ability to secure licenses to valuable entertainment properties on favorable terms; and other factors described in the Company's Annual Report on Form 10-K for the year ended March 31, 2007 and Quarterly Report for the quarter ended December 31, 2007. These forward-looking statements speak only as of May 13, 2008. Electronic Arts assumes no obligation and does not intend to update these forward-looking statements, including those made under the heading "Business Outlook". In addition, the preliminary financial results set forth in this release are estimates based on information currently available to Electronic Arts. While Electronic Arts believes these estimates are meaningful, they could differ from the actual amounts that Electronic Arts ultimately reports in its Annual Report on Form 10-K for the fiscal year ended March 31, 2008. Electronic Arts assumes no obligation and does not intend to update these estimates prior to filing its Form 10-K for the fiscal year ended March 31, 2008.

About Electronic Arts

Electronic Arts Inc. (EA), headquartered in Redwood City, California, is the world's leading interactive entertainment software company. Founded in 1982, the Company develops, publishes, and distributes interactive software worldwide for video game systems, personal computers, cellular handsets and the Internet. Electronic Arts markets its products under four brand names: EA SPORTS, EA, EA SPORTS Freestyle and POGO. In fiscal 2008, EA posted GAAP net revenue of $3.67 billion and had 27 titles that sold more than one million copies. EA's homepage and online game site is www.ea.com. More information about EA's products and full text of press releases can be found on the Internet at http://info.ea.com.

EA, EA SPORTS, EA SPORTS Freestyle, POGO, Boogie, Boom Blox, EA Playground, Smarty Pants Army of Two, Burnout and Pandemic are trademarks or registered trademarks of Electronic Arts Inc. in the U.S. and/or other countries. BioWare Corp. is a trademark or registered trademark of EA International (Studio and Publishing) Ltd. HASBRO, MONOPOLY, SCRABBLE, NERF, TONKA, YAHTZEE and LITTLEST PET SHOP are trademarks of Hasbro and are used with permission. ©2008 Hasbro. All Rights Reserved. Half-Life is a trademark or registered trademark of Valve Corporation in the U.S. and/or other countries. Rock Band is a trademark of Harmonix Music Systems, Inc., a division of MTV Networks. "PlayStation" is a registered trademark of Sony Computer Entertainment Inc. Wii is a trademark of Nintendo. All other trademarks are the property of their respective owners.

                ELECTRONIC ARTS INC. AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Operations
                 (in millions, except per share data)

                                Three Months Ended Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                    2008    2007     2008    2007 (a)
                                ---------- ------- -------- ----------
 Net revenue                       $1,127  $  613   $3,665  $   3,091
 Cost of goods sold                   462     235    1,805      1,212
                                ---------- ------- -------- ----------
 Gross profit                         665     378    1,860      1,879

 Operating expenses:
     Marketing and sales              128     116      588        466
     General and administrative        89      66      339        288
     Research and development         316     257    1,145      1,041
     Amortization of
      intangibles                      13       7       34         27
     Acquired in-process
      technology                      138       -      138          3
     Restructuring charges             18       3      103         15
                                ---------- ------- -------- ----------
        Total operating
         expenses                     702     449    2,347      1,840
                                ---------- ------- -------- ----------

 Operating income (loss)              (37)    (71)    (487)        39

 Losses on strategic
  investments                        (106)      -     (118)         -
 Interest and other income, net         7      30       98         99
                                ---------- ------- -------- ----------

Income (loss) before provision for
 (benefit from) income
     taxes and minority
      interest                       (136)    (41)    (507)       138

 Provision for (benefit from)
  income taxes                        (42)    (16)     (53)        66
                                ---------- ------- -------- ----------

 Income (loss) before minority
  interest                            (94)    (25)    (454)        72

 Minority interest                      -       -        -          4
                                ---------- ------- -------- ----------

 Net income (loss)                 $  (94) $  (25)  $ (454) $      76
                                ========== ======= ======== ==========

Earnings (loss) per share:
     Basic                         $(0.30) $(0.08)  $(1.45) $    0.25
     Diluted                       $(0.30) $(0.08)  $(1.45) $    0.24

Number of shares used in
 computation:
     Basic                            317     310      314        308
     Diluted                          317     310      314        317

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

The following tables reconcile the Company's net income (loss) and
 diluted earnings (loss) per share as presented in its Unaudited
 Condensed Consolidated Statements of Operations as prepared in
 accordance with Generally Accepted Accounting Principles ("GAAP") to
 its non-GAAP net income and non-GAAP diluted earnings per share. The
 Company's non-GAAP results exclude the following, if any: the impact
 of the change in deferred net revenue (packaged goods and digital
 content), acquisition-related expenses (such as acquired in-process
 technology and amortization of intangibles), certain litigation
 expenses, losses on strategic investments, restructuring charges, and
 stock-based compensation. In addition, the Company's non-GAAP results
 exclude income tax adjustments consisting of the income tax expense
 associated with the foregoing excluded items and the impact of
 certain one-time income tax adjustments.

                                Three Months Ended Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                    2008    2007     2008      2007
                                ---------- ------- -------- ----------
Net income (loss)                  $  (94) $  (25)  $ (454) $      76

   Change in deferred net
    revenue
     (packaged goods and
      digital content) (b)           (208)             355
   Acquired in-process
    technology                        138       -      138          3
   Amortization of intangibles         13       7       34         27
   COGS amortization of
    intangibles                         6       7       26         27
   Losses on strategic
    investments                       106       -      118          -
   Restructuring charges               18       3      103         15
   Stock-based compensation            45      28      150        133
   Income tax adjustments               6      (1)    (131)       (34)
                                ---------- ------- -------- ----------

Non-GAAP net income                $   30  $   19   $  339  $     247
                                ========== ======= ======== ==========

Non-GAAP diluted earnings per
 share                             $ 0.09  $ 0.06   $ 1.06  $    0.78
Shares used in non-GAAP diluted
 earnings
     per share computation            323     319      321        317

(a) Derived from audited financial statements.

(b) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
           Unaudited Condensed Consolidated Balance Sheets
                            (in millions)


                                                  March 31, March 31,
                                                     2008    2007 (a)
                                                  --------- ----------
ASSETS

Current assets:
   Cash, cash equivalents and short-term
    investments                                   $   2,287 $   2,635
   Marketable equity securities                         729       341
   Receivables, net of allowances of $238 and
    $214, respectively                                  306       256
   Inventories                                          168        62
   Deferred income taxes, net                           145        84
   Other current assets                                 290       219
                                                  --------- ----------
      Total current assets                            3,925     3,597

Property and equipment, net                             396       484
Goodwill                                              1,152       734
Other intangibles, net                                  265       210
Deferred income taxes, net                              164        25
Other assets                                            157        96
                                                  --------- ----------
   TOTAL ASSETS                                   $   6,059 $   5,146
                                                  ========= ==========

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
   Accounts payable                               $     229 $     180
   Accrued and other current liabilities                683       814
   Deferred net revenue (packaged goods and
    digital content)                                    387        32
                                                  --------- ----------
      Total current liabilities                       1,299     1,026

Income tax obligations                                  319         -
Deferred income taxes, net                                5         8
Other liabilities                                        97        80
                                                  --------- ----------
   Total liabilities                                  1,720     1,114

Stockholders' equity:
   Common stock                                           3         3
   Paid-in capital                                    1,864     1,412
   Retained earnings                                  1,888     2,323
   Accumulated other comprehensive income               584       294
                                                  --------- ----------
      Total stockholders' equity                      4,339     4,032
                                                  --------- ----------
   TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $   6,059 $   5,146
                                                  ========= ==========

(a) Derived from audited financial statements.
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Cash Flows
                            (in millions)


                                Three Months Ended Twelve Months Ended
                                    March 31,           March 31,
                                ------------------ -------------------
                                   2008     2007     2008    2007 (a)
                                ---------- ------- -------- ----------
OPERATING ACTIVITIES
 Net income (loss)              $     (94) $  (25) $  (454) $      76
 Adjustments to reconcile net
  income (loss) to net cash
  provided by operating
  activities:
    Depreciation, amortization
     and accretion, net                50      37      164        147
    Stock-based compensation           45      28      150        133
    Minority interest                   -       -        -         (4)
    Non-cash restructuring
     charges                           14       -       56          -
    Net losses on investments
     and sale of property and
     equipment                        103       -      111          1
    Acquired in-process
     technology                       138       -      138          3
    Change in assets and
     liabilities:
       Receivables, net               531     320       (8)       (18)
       Inventories                      8      19     (100)        12
       Other assets                    48     (17)      (8)        46
       Accounts payable              (146)     (3)      23         (2)
       Accrued and other
        liabilities                  (112)   (126)      71         34
       Deferred income taxes,
        net                           (92)    (19)    (160)       (54)
       Deferred net revenue
        (packaged goods and
        digital content)             (208)      -      355         23
                                ---------- ------- -------- ----------
Net cash provided by operating
 activities                           285     214      338        397
                                ---------- ------- -------- ----------

INVESTING ACTIVITIES
    Capital expenditures              (22)    (60)     (84)      (176)
    Purchase of marketable
     equity securities and
     other investments                  -       -     (275)        (1)
    Proceeds from maturities
     and sales of short-term
     investments                      328     404    2,306      1,315
    Purchase of short-term
     investments                     (349)   (434)  (1,739)    (1,522)
    Loan advance                        -       -      (30)         -
    Acquisition of
     subsidiaries, net of cash
     acquired                        (607)     (9)    (607)      (103)
                                ---------- ------- -------- ----------
Net cash used in investing
 activities                          (650)    (99)    (429)      (487)
                                ---------- ------- -------- ----------

FINANCING ACTIVITIES
    Proceeds from issuance of
     common stock                      32      35      192        168
    Excess tax benefit from
     stock-based compensation           6       9       51         36
    Repayment of note assumed
     in connection with
     acquisition                        -       -        -        (14)
                                ---------- ------- -------- ----------
Net cash provided by financing
 activities                            38      44      243        190
                                ---------- ------- -------- ----------

Effect of foreign exchange on
 cash and cash equivalents              2      13       30         29
                                ---------- ------- -------- ----------
Increase (decrease) in cash and
 cash equivalents                    (325)    172      182        129
Beginning cash and cash
 equivalents                        1,878   1,199    1,371      1,242
                                ---------- ------- -------- ----------
Ending cash and cash
 equivalents                        1,553   1,371    1,553      1,371
Short-term investments                734   1,264      734      1,264
                                ---------- ------- -------- ----------
Ending cash, cash equivalents
 and short-term investments     $   2,287  $2,635  $ 2,287  $   2,635
                                ========== ======= ======== ==========

(a) Derived from audited financial statements.
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
  Unaudited Supplemental Financial Information and Business Metrics
    (in millions, except per share data, SKU count and Headcount)


                     Q4       Q1       Q2       Q3       Q4     YOY %
                    FY07     FY08     FY08     FY08     FY08   Change
                  -------- -------- -------- -------- -------- -------

CONSOLIDATED
 FINANCIAL DATA
 Net revenue         613      395      640    1,503    1,127      84%
 Net revenue -
  trailing twelve
  months ("TTM")   3,091    3,073    2,929    3,151    3,665      19%

 Gross profit        378      229      245      721      665      76%
  Gross margin -
   % of net
   revenue            62%      58%      38%      48%      59%
 Gross profit -
  TTM              1,879    1,863    1,663    1,573    1,860      (1%)
  Gross margin -
   TTM % of net
   revenue            61%      61%      57%      50%      51%

 Operating income
  (loss)             (71)    (183)    (274)       7      (37)     48%
  Operating
   income (loss)
   margin - % of
   net revenue       (12%)    (46%)    (43%)      -       (3%)
 Operating income
  (loss) - TTM        39      (25)    (313)    (521)    (487)  (1349%)
  Operating
   income (loss)
   margin - TTM %
   of net revenue      1%      (1%)    (11%)    (17%)    (13%)

 Net loss            (25)    (132)    (195)     (33)     (94)   (276%)
  Diluted loss
   per share      ($0.08)  ($0.42)  ($0.62)  ($0.10)  ($0.30)   (275%)
 Net income
  (loss) - TTM        76       25     (192)    (385)    (454)   (697%)
  Diluted
   earnings
   (loss) per
   share - TTM     $0.24    $0.07   ($0.62)  ($1.22)  ($1.45)   (704%)

CASH FLOW DATA
 Operating cash
  flow               214     (192)    (104)     349      285      33%
 Operating cash
  flow - TTM         397      243      145      267      338     (15%)

 Capital
  expenditures        60       14       23       25       22     (63%)
 Capital
  expenditures -
  TTM                176      154      129      122       84     (52%)

BALANCE SHEET
 DATA
 Cash, cash
  equivalents and
  short-term
  investments      2,635    2,189    2,176    2,583    2,287     (13%)
 Marketable
  equity
  securities         341      660      716      837      729     114%
 Receivables, net    256      123      424      830      306      20%
 Inventories          62       74      103      178      168     171%
 Deferred net
  revenue
  (packaged goods
  and digital
  content) (a)
  End of the
   quarter            32       68      364      595      387
  Less: Beginning
   of the quarter      -       32       68      364      595
                  -------- -------- -------- -------- --------
   Change in
    deferred net
    revenue
    (packaged
    goods and
    digital
    content)          32       36      296      231     (208)

STOCK-BASED
 COMPENSATION
 Cost of goods
  sold                 1        -        1        1        -
 Marketing and
  sales                3        4        5        5        5
 General and
  administrative       7        8       10       11        9
 Research and
  development         17       16       22       21       31
                  -------- -------- -------- -------- --------
  Total Stock-
   Based
   Compensation       28       28       38       38       45

STOCK-BASED
 COMPENSATION -
 as a % of Net
 Revenue
 Marketing and
  sales                1%       1%       1%       1%       -
 General and
  administrative       1%       2%       2%       1%       1%
 Research and
  development          3%       4%       3%       1%       3%
                  -------- -------- -------- -------- --------
  Total Stock-
   Based
   Compensation        5%       7%       6%       3%       4%

OTHER
 Employees         7,893    8,101    8,239    8,165    9,037      14%
 Diluted
  weighted-
  average shares     310      311      313      315      317

GEOGRAPHIC NET
 REVENUE MIX
 North America       307      163      362      768      649     111%
 International       306      232      278      735      478      56%

 Europe              264      204      246      668      421      59%
 Asia                 42       28       32       67       57      36%
                  -------- -------- -------- -------- --------
  Net Revenue        613      395      640    1,503    1,127      84%

GEOGRAPHIC NET
 REVENUE MIX - as
 a % of Net
 Revenue
 North America        50%      41%      57%      51%      58%
 International        50%      59%      43%      49%      42%

 Europe               43%      52%      38%      44%      37%
 Asia                  7%       7%       5%       5%       5%
                  -------- -------- -------- -------- --------
  Net Revenue        100%     100%     100%     100%     100%

(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).

                ELECTRONIC ARTS INC. AND SUBSIDIARIES
  Unaudited Supplemental Financial Information and Business Metrics
    (in millions, except per share data, SKU count and Headcount)


                                Q4     Q1    Q2    Q3     Q4    YOY %
                               FY07   FY08  FY08  FY08   FY08   Change
                               -----  ----  ----  -----  -----  ------

PLATFORM NET REVENUE MIX
     PlayStation 2               117    61    73    301    166    42%
     PLAYSTATION 3                52    13    17    102    152   192%
     Xbox 360                     82    47   218    196    128    56%
     Wii                          36    29    59    139     75   108%
     Xbox                          7     3    12      3      1   (86%)
     Nintendo GameCube             4     1     3      1      -  (100%)
                               -----  ----  ----  -----  -----
          Total Consoles         298   154   382    742    522    75%

     PC                          128    89    79    148    114   (11%)

     PSP                          39    21    21     74     69    77%
     Nintendo DS                  27    25    47    122     36    33%
     Cellular Handsets            36    33    37     38     41    14%
     Game Boy Advance              3     2     4      2      -  (100%)
                               -----  ----  ----  -----  -----
         Total Mobility          105    81   109    236    146    39%

     Co-publishing and
      Distribution                45    39    33    320    295   556%

     Licensing, Advertising &
      Other                       13     9    14     34     27   108%
     Subscription Services        24    23    23     23     23    (4%)
                               -----  ----  ----  -----  -----
        Total Internet
         Services, Licensing &
         Other                    37    32    37     57     50    35%
                               -----  ----  ----  -----  -----

          Net Revenue            613   395   640  1,503  1,127    84%
                               =====  ====  ====  =====  =====

PLATFORM NET REVENUE MIX - as a % of Net Revenue
     PlayStation 2                19%   16%   11%    20%    15%
     PLAYSTATION 3                 9%    3%    3%     7%    14%
     Xbox 360                     13%   12%   34%    13%    11%
     Wii                           6%    7%    9%     9%     7%
     Xbox                          1%    1%    2%     -      -
     Nintendo GameCube             1%    -     1%     -      -
                               ------ ----- ----- ------ ------
          Total Consoles          49%   39%   60%    49%    47%

     PC                           21%   23%   12%    10%    10%

     PSP                           6%    5%    3%     5%     6%
     Nintendo DS                   5%    6%    7%     8%     3%
     Cellular Handsets             6%    8%    6%     3%     4%
     Game Boy Advance              -     1%    1%     -      -
                               ------ ----- ----- ------ ------
         Total Mobility           17%   20%   17%    16%    13%

     Co-publishing and
      Distribution                 7%   10%    5%    21%    26%

     Licensing, Advertising &
      Other                        2%    2%    2%     2%     2%
     Subscription Services         4%    6%    4%     2%     2%
                               ------ ----- ----- ------ ------
          Total Internet
           Services, Licensing
           & Other                 6%    8%    6%     4%     4%
                               ------ ----- ----- ------ ------

          Net Revenue            100%  100%  100%   100%   100%
                               ====== ===== ===== ====== ======



PLATFORM SKU RELEASE MIX (a)
     PlayStation 2                 6     1     7      7      -  (100%)
     PLAYSTATION 3                 3     1     7      5      4    33%
     Xbox 360                      4     2     8      5      4     -
     Wii                           4     2     5      7      -  (100%)
     Xbox                          -     -     2      -      -     -
     Nintendo GameCube             -     -     1      -      -     -
                               -----  ----  ----  -----  -----
           Total Consoles         17     6    30     24      8   (53%)

     PC                            6     5     7      4      5   (17%)

     PSP                           2     1     3      4      1   (50%)
     Nintendo DS                   2     2     4      5      1   (50%)
     Game Boy Advance              -     -     1      -      -     -
                               -----  ----  ----  -----  -----
          Total Mobility           4     3     8      9      2   (50%)
                               -----  ----  ----  -----  -----

          Total SKUs              27    14    45     37     15   (44%)
                               =====  ====  ====  =====  =====

(a) Mac(R), Cellular Handsets, iPod(R) nano, and iPod(R) classic are
 not included in SKU count.
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Supplemental Fact Sheet for Q4 Fiscal 2008


Q4 Product Releases                      Platform (i)

-- ARMY OF TWO(TM)                       PLAYSTATION(R)3
-- Burnout(TM) Paradise                  PLAYSTATION 3
-- FIFA Street 3                         PLAYSTATION 3
-- NFL Tour                              PLAYSTATION 3

-- ARMY OF TWO                           Xbox 360(TM)
-- Burnout Paradise                      Xbox 360
-- FIFA Street 3                         Xbox 360
-- NFL Tour                              Xbox 360

-- Command & Conquer(TM) 3: Kane's Wrath PC
-- The Sims(TM) 2 FreeTime               PC
-- The Sims Carnival(TM) BumperBlast     PC
-- The Sims Carnival SnapCity            PC
-- The Sims Castaway Stories             PC

-- The Sims Castaway Stories             Mac(R)

-- Need for Speed(TM) ProStreet          PSP(R)

-- FIFA Street 3                         Nintendo DS(TM)

-- Command & Conquer 3 Tiberium Wars(TM) Cellular Handsets
-- Merv Griffin's Crosswords(TM)         Cellular Handsets
-- MONOPOLY HERE AND NOW                 Cellular Handsets
-- Tetris(R) Blockout(TM)                Cellular Handsets
-- The Sims Castaway                     Cellular Handsets
-- The Sims Pool                         Cellular Handsets

-- SCRABBLE(R)                           iPod(R) nano/iPod(R) classic
-- YAHTZEE                               iPod nano/iPod classic


   Co-publishing, Distribution, and International only (ii)

-- Ninja Reflex(TM)                      Wii(TM)

-- Ninja Reflex                          Nintendo DS
-- SimCity(TM) DS 2 (iii)                Nintendo DS

-- Asterix: The Official Mobile Game of  Cellular Handsets
 the Movie (iv)
-- FIFA Manager                          Cellular Handsets


(i) Mac, Cellular Handsets, iPod nano, and iPod classic releases are
 not included in SKU count.
(ii) Not included in SKU count.
(iii) Released in Japan.
(iv) Referred in France as "Asterix at the Olympic Games".


All trademarks are the property of their respective owners.

                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Reconciliation of GAAP to Non-GAAP Results
                 (in millions, except per share data)


The following tables reconcile the Company's net revenue, gross
 profit, operating income (loss), net loss and diluted loss per share
 as presented in its Unaudited Condensed Consolidated Statements of
 Operations as prepared in accordance with Generally Accepted
 Accounting Principles ("GAAP") with its non-GAAP net revenue, non-
 GAAP gross profit, non-GAAP operating income (loss), non-GAAP net
 income (loss), and non-GAAP diluted earnings (loss) per share. The
 Company's non-GAAP net revenue excludes the impact of the change in
 deferred net revenue (packaged goods and digital content). The
 Company's non-GAAP gross profit excludes the impact of the change in
 deferred net revenue (packaged goods and digital content), COGS
 amortization of intangibles, and stock-based compensation. The
 Company's non-GAAP operating income (loss), non-GAAP net income
 (loss), and non-GAAP diluted earnings (loss) per share exclude the
 impact of the change in deferred net revenue (packaged goods and
 digital content), acquired in-process technology, amortization of
 intangibles, restructuring charges, and stock-based compensation. In
 addition, the Company's non-GAAP net income (loss) and non-GAAP
 diluted earnings (loss) per share exclude losses on strategic
 investments and income tax adjustments consisting of the income tax
 expense associated with the foregoing excluded items and the impact
 of certain one-time income tax adjustments.

                   Q4        Q1        Q2       Q3       Q4     YOY %
                  FY07      FY08      FY08     FY08     FY08    Change
                --------- --------- -------- -------- --------- ------
QUARTERLY
 RECONCILIATION
 OF RESULTS
 GAAP net
  revenue       $   613   $   395   $   640  $ 1,503  $ 1,127     84%
  Change in
   deferred net
   revenue
   (packaged
   goods and
   digital
   content) (a)                36       296      231     (208)
                --------- --------- -------- -------- ---------

 Non-GAAP net
  revenue (a)   $   613   $   431   $   936  $ 1,734  $   919     50%
                ========= ========= ======== ======== =========


 GAAP gross
  profit        $   378   $   229   $   245  $   721  $   665     76%
  Change in
   deferred net
   revenue
   (packaged
   goods and
   digital
   content) (a)
                               36       296      231     (208)
  COGS
   amortization
   of
   intangibles        7         7         7        6        6
  Stock-based
   compensation       1         -         1        1        -
                --------- --------- -------- -------- ---------

 Non-GAAP gross
  profit        $   386   $   272   $   549  $   959  $   463     20%
                ========= ========= ======== ======== =========
  Non-GAAP gross
   margin - % of
   non-GAAP net
   revenue           63%       63%       59%      55%      50%


 GAAP operating
  income (loss) $   (71)  $  (183)  $  (274) $     7  $   (37)    48%
  Change in
   deferred net
   revenue
   (packaged
   goods and
   digital
   content) (a)                36       296      231     (208)
  Acquired in-
   process
   technology         -         -         -        -      138
  Amortization
   of
   intangibles        7         7         7        7       13
  COGS
   amortization
   of
   intangibles        7         7         7        6        6
  Restructuring
   charges            3         2         5       78       18
  Stock-based
   compensation      28        28        38       38       45
                --------- --------- -------- -------- ---------

 Non-GAAP
  operating
  income (loss) $   (26)  $  (103)  $    79  $   367  $   (25)     4%
                ========= ========= ======== ======== =========
  Non-GAAP
   operating
   income (loss)
   margin - % of
   non-GAAP net
   revenue           (4%)     (24%)       8%      21%      (3%)


 GAAP net loss  $   (25)  $  (132)  $  (195) $   (33) $   (94)  (276%)
  Change in
   deferred net
   revenue
   (packaged
   goods and
   digital
   content) (a)                36       296      231     (208)
  Acquired in-
   process
   technology         -         -         -        -      138
  Amortization
   of
   intangibles        7         7         7        7       13
  COGS
   amortization
   of
   intangibles        7         7         7        6        6
  Losses on
   strategic
   investments        -         -         -       12      106
  Restructuring
   charges            3         2         5       78       18
  Stock-based
   compensation      28        28        38       38       45
  Income tax
   adjustments       (1)      (17)      (71)     (49)       6
                --------- --------- -------- -------- ---------

 Non-GAAP net
  income (loss) $    19   $   (69)  $    87  $   290  $    30     58%
                ========= ========= ======== ======== =========
  Non-GAAP net
   income (loss)
   margin - % of
   non-GAAP net
   revenue            3%      (16%)       9%      17%       3%

 GAAP diluted
  loss per
  share          ($0.08)   ($0.42)   ($0.62)  ($0.10)  ($0.30)  (275%)
  Non-GAAP
   diluted
   earnings
   (loss) per
   share          $0.06    ($0.22)    $0.27    $0.90    $0.09     50%
   Shares used
    in non-GAAP
    diluted
    earnings
    (loss) per
    share
    computation
                    319       311       320      323      323


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
         Unaudited Reconciliation of GAAP to Non-GAAP Results
                 (in millions, except per share data)

The following tables reconcile the Company's net revenue, gross
 profit, operating income (loss), net income (loss) and diluted
 earnings (loss) per share as presented in its Unaudited Condensed
 Consolidated Statements of Operations as prepared in accordance with
 Generally Accepted Accounting Principles ("GAAP") with its non-GAAP
 net revenue, non-GAAP gross profit, non-GAAP operating income, non-
 GAAP net income, and non-GAAP diluted earnings per share. The
 Company's non-GAAP net revenue excludes the impact of the change in
 deferred net revenue (packaged goods and digital content). The
 Company's non-GAAP gross profit excludes the impact of the change in
 deferred net revenue (packaged goods and digital content), COGS
 amortization of intangibles, and stock-based compensation. The
 Company's non-GAAP operating income, non-GAAP net income, and non-
 GAAP diluted earnings per share exclude the impact of the change in
 deferred net revenue (packaged goods and digital content), acquired
 in-process technology, amortization of intangibles, restructuring
 charges, and stock-based compensation. In addition, the Company's
 non-GAAP net income and non-GAAP diluted earnings per share exclude
 losses on strategic investments and income tax adjustments consisting
 of the income tax expense associated with the foregoing excluded
 items and the impact of certain one-time income tax adjustments.


                      Q4      Q1       Q2       Q3       Q4     YOY %
                     FY07    FY08     FY08     FY08     FY08   Change
                    ------- ------- -------- -------- -------- -------
TRAILING TWELVE
 MONTH
 RECONCILIATION OF
 RESULTS
 GAAP net revenue   $3,091  $3,073  $ 2,929  $ 3,151  $ 3,665     19%
   Change in
    deferred net
    revenue
     (packaged
      goods and
      digital
      content) (a)              36      332      563      355
                    ------- ------- -------- -------- --------

 Non-GAAP net
  revenue (a)       $3,091  $3,109  $ 3,261  $ 3,714  $ 4,020     30%
                    ======= ======= ======== ======== ========


 GAAP gross profit  $1,879  $1,863  $ 1,663  $ 1,573  $ 1,860     (1%)
   Change in
    deferred net
    revenue
     (packaged
      goods and
      digital
      content) (a)              36      332      563      355
   COGS
    amortization of
    intangibles         27      28       28       27       26
   Stock-based
    compensation         2       2        2        3        2
                    ------- ------- -------- -------- --------

 Non-GAAP gross
  profit            $1,908  $1,929  $ 2,025  $ 2,166  $ 2,243     18%
                    ======= ======= ======== ======== ========
   Non-GAAP gross
    margin
- % of non-GAAP net
 revenue                62%     62%      62%      58%      56%


 GAAP operating
  income (loss)     $   39  $  (25) $  (313) $  (521) $  (487) (1349%)
   Change in
    deferred net
    revenue
     (packaged
      goods and
      digital
      content) (a)              36      332      563      355
   Acquired in-
    process
    technology           3       3        1        -      138
   Amortization of
    intangibles         27      28       28       28       34
   COGS
    amortization of
    intangibles         27      28       28       27       26
   Restructuring
    charges             15      11       12       88      103
   Stock-based
    compensation       133     124      129      132      150
                    ------- ------- -------- -------- --------

 Non-GAAP operating
  income            $  244  $  205  $   217  $   317  $   319     31%
                    ======= ======= ======== ======== ========
   Non-GAAP
    operating income
    margin
- % of non-GAAP net
 revenue                 8%      7%       7%       9%       8%


 GAAP net income
  (loss)            $   76  $   25  $  (192) $  (385) $  (454)  (697%)
   Change in
    deferred net
    revenue
     (packaged
      goods and
      digital
      content) (a)              36      332      563      355
   Acquired in-
    process
    technology           3       3        1        -      138
   Amortization of
    intangibles         27      28       28       28       34
   COGS
    amortization of
    intangibles         27      28       28       27       26
   Losses on
    strategic
    investments          -       -        -       12      118
   Restructuring
    charges             15      11       12       88      103
   Stock-based
    compensation       133     124      129      132      150
   Income tax
    adjustments        (34)    (39)    (100)    (138)    (131)
                    ------- ------- -------- -------- --------

 Non-GAAP net
  income            $  247  $  216  $   238  $   327  $   339     37%
                    ======= ======= ======== ======== ========
  Non-GAAP net
   income margin
- % of non-GAAP net
 revenue                 8%      7%       7%       9%       8%

 GAAP diluted
  earnings (loss)
  per share          $0.24   $0.07   ($0.62)  ($1.22)  ($1.45)  (704%)
 Non-GAAP diluted
  earnings per
  share              $0.78   $0.68    $0.74    $1.01    $1.06     36%


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
 Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
                           Business Metrics
                 (in millions, except per share data)


                       Q4       Q1       Q2      Q3       Q4    YOY %
                      FY07     FY08     FY08    FY08     FY08   Change
                    -------- --------- ------- ------- -------- ------
CONSOLIDATED NON-
 GAAP FINANCIAL
 DATA (b)
 Non-GAAP net
  revenue              613       431      936   1,734     919      50%
 Non-GAAP net
  revenue - TTM      3,091     3,109    3,261   3,714   4,020      30%


 Non-GAAP gross
  profit               386       272      549     959     463      20%
     Non-GAAP gross
      margin - % of
      non-GAAP net
      revenue           63%       63%      59%     55%     50%
 Non-GAAP gross
  profit - TTM       1,908     1,929    2,025   2,166   2,243      18%
     Non-GAAP gross
      margin - TTM
      % of non-GAAP
      net revenue       62%       62%      62%     58%     56%


 Non-GAAP operating
  income (loss)        (26)     (103)      79     367     (25)      4%
     Non-GAAP
      operating
      income (loss)
      margin - % of
      non-GAAP net
      revenue           (4%)     (24%)      8%     21%     (3%)
 Non-GAAP operating
  income - TTM         244       205      217     317     319      31%
     Non-GAAP
      operating
      income margin
      - TTM % of
      non-GAAP net
      revenue            8%        7%       7%      9%      8%


 Non-GAAP net
  income (loss)         19       (69)      87     290      30      58%
     Non-GAAP
      diluted
      earnings
      (loss) per
      share          $0.06    ($0.22)   $0.27   $0.90   $0.09      50%
 Non-GAAP net
  income - TTM         247       216      238     327     339      37%
     Non-GAAP
      diluted
      earnings per
      share - TTM    $0.78     $0.68    $0.74   $1.01   $1.06      36%


GEOGRAPHIC NET
 REVENUE MIX -
GAAP to Non-GAAP
 Reconciliation

GAAP
 North America         307       163      362     768     649     111%
 International         306       232      278     735     478      56%

  Europe               264       204      246     668     421      59%
  Asia                  42        28       32      67      57      36%
                    -------- --------- ------- ------- --------
    Net Revenue        613       395      640   1,503   1,127      84%

Change In Deferred
 Net Revenue
 (Packaged Goods
 and Digital
 Content)
 Geographic Mix (a)
 North America                     8      163      93    (105)
 International                    28      133     138    (103)

  Europe                          21      129     124    (103)
  Asia                             7        4      14       -
                             --------- ------- ------- --------
    Change In
     Deferred Net
     Revenue
     (Packaged
     Goods and
     Digital
     Content)                     36      296     231    (208)

Non-GAAP
 North America         307       171      525     861     544      77%
 International         306       260      411     873     375      23%

  Europe               264       225      375     792     318      20%
  Asia                  42        35       36      81      57      36%
                    -------- --------- ------- ------- --------
    Non-GAAP Net
     Revenue           613       431      936   1,734     919      50%
                    ======== ========= ======= ======= ========


NON-GAAP GEOGRAPHIC
 NET REVENUE MIX -
 as a % of Non-GAAP
 Net Revenue
 North America          50%       40%      56%     50%     59%
 International          50%       60%      44%     50%     41%

  Europe                43%       52%      40%     45%     35%
  Asia                   7%        8%       4%      5%      6%
                    -------- --------- ------- ------- --------
    Non-GAAP Net
     Revenue           100%      100%     100%    100%    100%
                    ======== ========= ======= ======= ========


(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).
(b) Refer to Unaudited Reconciliation of GAAP to Non-GAAP Results.
                ELECTRONIC ARTS INC. AND SUBSIDIARIES
 Unaudited Supplemental Non-GAAP Financial Information and Non-GAAP
                           Business Metrics
                            (in millions)


                                   Q4   Q1   Q2     Q3     Q4   YOY %
                                  FY07 FY08 FY08   FY08   FY08  Change
                                  ---- ---- ----- ------ ------ ------

PLATFORM NON-GAAP NET REVENUE MIX
     PLAYSTATION 3                 52   20    98    196    138   165%
     Xbox 360                      82   47   218    196    128    56%
     Wii                           36   29    83    156     61    69%
     PlayStation 2                117   69   204    324     52   (56%)
     Xbox                           7    3    12      3      1   (86%)
     Nintendo GameCube              4    1     3      1      -  (100%)
                                  ---- ---- ----- ------ ------
          Total Consoles          298  169   618    876    380    28%

     PC                           128   96   116    153     92   (28%)

     PSP                           39   30    43    111     47    21%
     Cellular Handsets             36   34    37     38     41    14%
     Nintendo DS                   27   25    47    122     36    33%
     Game Boy Advance               3    2     4      2      -  (100%)
                                  ---- ---- ----- ------ ------
         Total Mobility           105   91   131    273    124    18%

     Co-publishing and
      Distribution                 45   39    32    372    271   502%

     Licensing, Advertising &
      Other                        13   13    16     37     29   123%
     Subscription Services         24   23    23     23     23    (4%)
                                  ---- ---- ----- ------ ------
        Total Internet Services,
         Licensing & Other         37   36    39     60     52    41%
                                  ---- ---- ----- ------ ------

          Non-GAAP Net Revenue    613  431   936  1,734    919    50%

Change in Deferred Net Revenue
(Packaged Goods and Digital Content) (a)
     PLAYSTATION 3                      (7)  (81)   (94)    14
     Wii                                 -   (24)   (17)    14
     PlayStation 2                      (8) (131)   (23)   114
     PC                                 (7)  (37)    (5)    22
     PSP                                (9)  (22)   (37)    22
     Cellular Handsets                  (1)    -      -      -
     Co-publishing and
      Distribution                       -     1    (52)    24
     Licensing, Advertising &

      Other                             (4)   (2)    (3)    (2)
                                       ---- ----- ------ ------
       Change in Deferred Net Revenue
       (Packaged Goods and Digital
        Content) (a)                   (36) (296)  (231)   208
                                       ---- ----- ------ ------

          GAAP Net Revenue             395   640  1,503  1,127
                                       ==== ===== ====== ======

PLATFORM NON-GAAP NET REVENUE MIX
- as a % of Non-GAAP Net Revenue
     PLAYSTATION 3                  9%   5%   11%    11%    15%
     Xbox 360                      13%  11%   23%    11%    14%
     Wii                            6%   7%    9%     9%     7%
     PlayStation 2                 19%  16%   22%    19%     5%
     Xbox                           1%   1%    1%     -      -
     Nintendo GameCube              1%   -     -      -      -
                                  ---- ---- ----- ------ ------
          Total Consoles           49%  40%   66%    50%    41%

     PC                            21%  22%   12%     9%    10%

     PSP                            6%   7%    5%     7%     5%
     Cellular Handsets              6%   8%    4%     2%     4%
     Nintendo DS                    5%   6%    5%     7%     4%
                                  ---- ---- ----- ------ ------
         Total Mobility            17%  21%   14%    16%    13%

     Co-publishing and
      Distribution                  7%   9%    4%    22%    30%

     Licensing, Advertising &
      Other                         2%   3%    2%     2%     3%
     Subscription Services          4%   5%    2%     1%     3%
                                  ---- ---- ----- ------ ------
          Total Internet
           Services, Licensing &
           Other                    6%   8%    4%     3%     6%
                                  ---- ---- ----- ------ ------

          Non-GAAP Net Revenue    100% 100%  100%   100%   100%
                                  ==== ==== ===== ====== ======

(a) Prior to fiscal 2008, the change in deferred net revenue (packaged
 goods and digital content) did not have a material impact on the
 Company's net revenue. Accordingly, the Company has not revised its
 fiscal 2007 non-GAAP financial measures to exclude the impact of the
 change in deferred net revenue (packaged goods and digital content).

CONTACT: Electronic Arts Inc.
Tricia Gugler, 650-628-7327
Director, Investor Relations
Jeff Brown, 650-628-7922
Vice President, Corporate Communications

SOURCE: Electronic Arts Inc.


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