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THQ Lowers Fiscal 2011 First Quarter and Full-Year Outlook Due to Low UFC Undisputed 2010 Sales

AGOURA HILLS, Calif., Jun 14, 2010 (BUSINESS WIRE) –THQ Inc. (NASDAQ: THQI) today announced updated guidance for its fiscal first quarter ending June 30, 2010, and its fiscal year ending March 31, 2011, reflecting lower-than-anticipated sales of UFC(R) Undisputed(TM) 2010, and the strengthening US dollar.

For the fiscal first quarter ending June 30, 2010, the company expects non-GAAP net sales to be between $155 million to $165 million, which is below the company’s previous outlook of non-GAAP net sales in the range of $190 million to $200 million. The company also expects fiscal first quarter non-GAAP loss per share in the range of $0.20 to $0.30, compared with its previous outlook of breakeven.

Based on the revised outlook for UFC Undisputed 2010, combined with the strengthening US dollar, the company now expects to report full year non-GAAP net sales in the range of $845 million to $865 million and roughly breakeven non-GAAP earnings per share for the full year. Previous FY11 full year guidance was non-GAAP net sales in the range of $905 million to $920 million and non-GAAP earnings per share in the range of $0.25 to $0.30.

THQ President and CEO Brian Farrell said, “While we are disappointed with this financial update, we continue to execute on our plan of bringing quality games to market. As we discussed on our May 5th conference call, our primary goal in fiscal 2011 was to position THQ for growth in fiscal 2012 and beyond. We have a strong pipeline scheduled for release over the next three years and we encourage everyone to visit our booth at E3 to see our impressive line-up.”

Farrell added, “UFC Undisputed 2010 is a high quality game, with a Metacritic score of 85, based on the tremendous UFC brand. Preorders were up 50% over last year and we saw strong retail and consumer demand for the title coming into launch, resulting in shipments of 2.6 million units to date. Unfortunately, total sell through to date has been below our expectations and prior-year results. We will continue to drive demand through a strong marketing campaign and by working with our partners at the UFC, including the upcoming July 4th UFC 116 event featuring our cover athlete, Brock Lesnar.”

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