2007 Annual Report

<table border="0" cellpadding="0" cellspacing="0" width="100%" align="center" summary="2007 Annual Report no frames"> <tr class="HeaderEmail"> <td id="LogoDiv" rowspan="2"> <a target="_blank" href="http://www.take2games.com"><img border="0" src="http://www.shareholder.com/shared/dynamicdoc/TTWO/2150/logo.jpg" alt="logo"></a> </td><td id="TitleDiv" rowspan="2"> <h1 id="DocTitle">2007 Annual Report</h1> <div id="NavArrows"> <img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/rew_off.gif" width="14" height="14" alt="First Page" border="0"> <img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/prev_off.gif" width="14" height="14" alt="Previous Page" border="0"> <span id="PageLabel"> AR-1 </span> <a href="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO&Page=2" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/next_on.gif" width="14" height="14" alt="Next Page" border="0"></a> <span style="display:none;">|</span> <a href="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO&Page=114" class="button"><img src="http://www.shareholder.com/visitors/dynamicdoc/v3/images/ffwd_on.gif" width="14" height="14" alt="Last Page" border="0"></a> </div></td> <td colspan="2"> <form id="SectionSelect" name="SectionSelect" action="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO" method="post"> <label for="Sections">Table of Contents</label> <br><select class="FormFields" name="Page" id="Sections" size="1"> <option value="1" selected>2007 Annual Report</option> <option value="2">Inside Cover</option> <option value="3">"Creativity makes a leap, then looks to see where it is."</option> <option value="4">Our Stars...</option> <option value="6">Letter to Shareholders</option> <option value="8">Intellectual property is the driving force of our industry.</option> <option value="9">SEC Form 10-K</option> <option value="10">Index</option> <option value="11">PART I</option> <option value="11">Item 1. Business</option> <option value="11">Item 1A. Risk Factors</option> <option value="29">Item 1B. Unresolved Staff Comments</option> <option value="29">Item 2. Properties</option> <option value="30">Item 3. Legal Proceedings</option> <option value="33">Item 4. Submission of Matters to a Vote of Security Holders</option> <option value="34">PART II</option> <option value="34">Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities</option> <option value="36">Item 6. Selected Financial Data</option> <option value="37">Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operations</option> <option value="58">Item7A. Quantitative and Qualitative Disclosures about Market Risk</option> <option value="58">Item 8. Financial Statements and Supplementary Data</option> <option value="59">Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure</option> <option value="59">Item 9A. Controls and Procedures</option> <option value="60">Item 9B. Other Information</option> <option value="61">PART III</option> <option value="61">Item 10. Directors and Executive Officers of the Registrant</option> <option value="61">Item 11. Executive Compensation</option> <option value="61">Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters</option> <option value="61">Item 13. Certain Relationships and Related Transactions</option> <option value="61">Item 14. Principal Accounting Fees and Services</option> <option value="62">PART IV</option> <option value="62">Item 15. Exhibits, Financial Statement Schedules</option> <option value="65">Index to Financial Statements</option> <option value="105">Signatures</option> <option value="106">Subsidiaries of the Company</option> <option value="107">Consent of Independent Registered Public Accounting Firm</option> <option value="109">Certification of Chief Executive Officer</option> <option value="110">Certification of Chief Financial Officer</option> <option value="111">Certification Pursuant to 18 U.S. C. Section 1350</option> <option value="113">Corporate Information</option> <option value="114">Back Cover</option> </select> <input class="FormFields" type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/B/Go.gif" alt="Go" value="Go"> </form> </td> </tr> <tr class="HeaderEmail"> <td> <form id="Search" name="Search" action="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO" method="post"> <label for="keyword">Search</label><br><input class="FormFields" maxlength="100" name="keyword" id="keyword" size="10" type="Text" value="type keyword here"> <input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/B/Search.gif" alt="Search" value="Search" class="FormFields"></nobr> </form></td> <td><form id="Jump" name="Jump" action="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO" method="post"> <label for="EmailGoTo">Go to page</label><br><input class="FormFields" maxlength="15" id="EmailGoTo" name="EmailGoTo" size="4" type="Text" value="1"> <input type="image" src="http://www.shareholder.com/visitors/dynamicdoc/themes/B/GoToPage.gif" alt="Go to page" value="Go to page" class="FormFields"> </form> </td> </tr><tr> <td colspan="4" align="center" id="DisplayPage"><a href="http://TTWO.client.shareholder.com/visitors/dynamicdoc/document.cfm?documentid=2150&companyid=TTWO&page=2"><img name="DisplayPage" src="http://www.shareholder.com/shared/dynamicdoc/TTWO/2150/page_1.jpg" border="2" alt="AR-1" longdesc="http://www.shareholder.com/visitors/dynamicdoc/v3/../page_longdesc.cfm?CompanyID=TTWO&documentID=2150&PIN=&Page=1"></a> <span style="display:none;">[<a href="../page_longdesc.cfm?CompanyID=TTWO&documentID=2150&PIN=&Page=1">D</a>]</span></td> </tr> </table>