BIGGER STAKE IN ASIA FOR CRYPTOLOGIC

14 December 2007

Dublin-based online gambling software developer invests in Singapore company


In a $6.1 million deal that will deliver games from a top Asian developer and improved access to the burgeoning mobile gambling market, Cryptologic has acquired a substantial stake in Mikoishi Studios, an Asian game development and design company with strong capabilities in the mobile gaming market.

CryptoLogic's $6.1 million investment in Mikoishi creates a Singapore-based strategic partnership that will accelerate the pace of CryptoLogic's penetration of the promising Asia-Pacific marketplace. The company expects revenue from the transaction to be accretive to its earnings in 2008.

"Finding the right partners has been essential to CryptoLogic's dramatic growth in Europe, and it will be key to CryptoLogic's future growth in Asia," said Javaid Aziz, CryptoLogic's President and CEO. "We began 2007 with a relationship that brought us China-specific games - and we end the year with an even bigger partnership that will bring us both new games and new capabilities in the massive Asian mobile gaming market."

The Mikoishi partnership will bring CryptoLogic games from Mikoishi, and access to a technology platform that allows games to be ported to wireless devices. Because so many Asian consumers rely largely or exclusively on wireless communications, this opens up new opportunities for CryptoLogic to penetrate a large and thriving segment of the online gaming market.

CryptoLogic will initially take a substantial minority equity stake in Mikoishi, and has options to increase its ownership over time. CryptoLogic will also have representatives on the Mikoishi board of directors.

This is CryptoLogic's second strategic investment in Asia this year. The company also acquired a significant interest in 568 Network Inc., a developer and distributor of online casual games to the Chinese market both at home and overseas (see previous InfoPowa report).

CryptoLogic also announced that operations in the fourth quarter of 2007 are encouraging, and the company expects to achieve results at the upper end of the guidance it gave on November 8, 2007.

Mikoishi is an award-winning creative studio that produces interactive entertainment, based on internally created IP franchises that have international appeal. It has an extensive track record in producing quality games of all genres, including games of chance, action, adventure and a wide range of casual games.

Mikoishi has collaborated with major game publishers, Hollywood and leading mobile operators worldwide to deliver award-winning products which are operated in over 40 countries across North and South America, Europe and North and South East Asia. Mikoishi is headquartered in Singapore with regional offices in Korea and Japan.

Mikoishi's past projects and awards include: Phoenix Wright: Ace Attorney (IGN's Best of E3 2006 - Best Wireless Strategy Game; 1UP's Best of E3 2006 - Runner Up for Best Mobile Game), Star Wars Battlefront Mobile (Runner Up - IGN Wireless Game of the Year 2005, Most Innovative Design), Super Puzzle Fighter II: Network Battle (IGN's Best of E3 2006 - Most Innovative Design for Wireless Game; IGN's Best of E3 2006 - Runner up for Best Puzzle Game; 1UP's Best of E3 2006 - Runner Up for Best Mobile Game), and Metal Unit (GameAxis - 2005 Editors' Choice and Asian Game of the Year).

Online Casino News courtesy of InfoPowa