TAKE-TWO INTERACTIVE SOFTWARE, INC. AND SUBSIDIARIES Consolidated Statements of Stockholders’ Equity For the Years Ended October 31, 2001 (Restated), 2002 (Restated) and 2003 (In thousands) The accompanying notes are an integral part of these consolidated financial statements. 31 Accumulated Additional Deferred Other Common Stock Paid-in Compen- Retained Comprehensive Shares Amount Capital sation Earnings Income (Loss) Total (Restated) (Restated) Balance, November 1, 2000 31,173 $312 $157,738 $ (5) $ 22,261 $(12,672) $167,634 Foreign currency translation adjustment — — — — — (767) (767) Net unrealized income on investments, net of taxes of $1,832 — — — — — 2,987 2,987 Net loss — — — — (6,918) — (6,918) Comprehensive (loss) (4,698) Proceeds from exercise of stock options  and warrants 3,266 32 22,582 — — — 22,614 Amortization of deferred compensation — — — 5 — — 5 Issuance of common stock in connection with acquisitions 1,466 14 13,967 — — — 13,981 Issuance of common stock in connection with private placements, net of issuance costs 1,300 13 20,879 — — — 20,892 Retirement of common stock (564) (5) (7,305) — — — (7,310) Tax benefit in connection with the exercise of stock options — — 6,047 — — — 6,047 Balance, October 31, 2001 36,641 366 213,908 — 15,343 (10,452) 219,165 Foreign currency translation adjustment — — — — — 5,553 5,553 Net unrealized income on investments, net of taxes of $87 — — — — — (142) (142) Net income — — — — 71,563 — 71,563 Comprehensive income 76,974 Proceeds from exercise of stock options and warrants 2,434 25 23,283 — — — 23,308 Amortization of deferred compensation — — — 682 — — 682 Deferred compensation in connection with restricted stock issued 50 1 908 (909) — — — Issuance of common stock in connection with acquisitions 1,212 12 22,332 — — — 22,344 Issuance of compensatory stock and stock options 25 — 2,371 — — — 2,371 Tax benefit in connection with  the exercise of stock options — — 10,700 — — — 10,700 Balance, October 31, 2002 40,362 404 273,502 (227) 86,906 (5,041) 355,544 Foreign currency translation adjustment — — — — — 4,119 4,119 Net unrealized loss on investment, net of taxes of $9 — — — — — (14) (14) Net income — — — — 98,118 — 98,118 Comprehensive income 102,223 Proceeds from exercise of stock options and warrants 3,404 34 44,831 — — — 44,865 Amortization of deferred compensation — — — 3,427 — — 3,427 Issuance of common stock in connection with acquisition 236 2 6,555 — — — 6,557 Issuance of compensatory stock and stock options 225 2 5,106 (5,090) — — 18 Tax benefit in connection with the exercise of stock options — — 20,858 — — — 20,858 Balance, October 31, 2003 44,227 $442 $350,852 $(1,890) $185,024 $ (936) $533,492