CryptoLogic Limited
TSX : CRY
TSX : CXY
NASDAQ : CRYP
LSE : CRP

CryptoLogic Limited

October 20, 2008 09:53 ET

CryptoLogic to Focus on Casino, Branded Games for Renewed Profitability

With rapid signing of new Internet casino customers, CryptoLogic set to strike partnership with large poker network

DUBLIN, IRELAND--(Marketwire - Oct. 20, 2008) - CryptoLogic Limited (TSX:CRY)(TSX:CXY)(NASDAQ:CRYP)(LSE:CRP), a leading software developer to the global Internet gaming market, announced today that it is embarking on a focused strategy centred on its highly successful Internet casino business, as exemplified by today's licensing of casino games to PartyGaming Plc.

The strategy leverages the company's fast-growing list of new customers, acknowledged leadership in casino games, and a pending partnership with one of the world's largest poker networks to achieve substantial revenue growth while reducing annual operating expenses by $12- $15 million.

"For several months, CryptoLogic has been both assessing the changing market and looking at what we do best - and the result is a clear strategy for enhanced profitability," said Brian Hadfield, CryptoLogic's President and CEO. "It's a strategy that will focus on CryptoLogic's core strengths: developing the most innovative games, licensing our acclaimed casino software to top gaming sites, and leveraging our lead in branded content by partnering with the world's top entertainment brands."

In 2008 alone, CryptoLogic has announced nine new customers, including today's major announcement with PartyGaming Plc, and has a healthy pipeline of pending opportunities.

CryptoLogic's new strategy includes:

- Casino licensing: Internet casino is by far CryptoLogic's most profitable business, and the company expects significant revenue growth from this segment in 2009. CryptoLogic will continue to sell customized casino solutions to both established and emerging gaming brands.

- New channels for CryptoLogic games: With the highest-rated casino games on the market, CryptoLogic has found attractive opportunities selling its leading games to other top brands, such as 888.com and PartyGaming. These and other large global gaming sites offer significant revenue potential for 2009 and beyond.

- Branded content: The company has been a pioneer in taking top entertainment brands - from legendary superheroes to world-famous video and casual games -- and converting them into highly popular and profitable casino products. CryptoLogic will focus and build on this expertise.

- Poker partnership: CryptoLogic is in detailed discussions with another major poker network to increase liquidity while reducing expenses substantially.

- New markets: The company will continue to develop its business and manage its recent investments and new relationships in China, Korea and Singapore to achieve long-term growth.

Boasting more than 200 games, CryptoLogic has one of the most comprehensive casino suites on the Internet today. From popular casual games such as Sudoku, Cubis, and Bejeweled to multi-bonus and multi-jackpot games featuring some of the world's most famous action and entertainment characters, CryptoLogic has earned rave reviews from industry peers and players alike. In 2008, CryptoLogic earned Gambling Online Magazine's Top Casino Software award for the third consecutive year. Based on the votes of players around the world, it is widely considered the industry's top honour.

CryptoLogic management will provide full details about the company's strategy and 2009 outlook on the occasion of the company's Q3 earnings announcement in mid-November.

About CryptoLogic®(www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Limited is a leading blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic® Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers who offer their games around the world to non-U.S. based players. For information on WagerLogic, please visit www.wagerlogic.com.

CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release, which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.

Contact Information

  • CryptoLogic
    Stephen Taylor
    Chief Financial Officer
    353 (0) 1 234 0415
    www.cryptologic.com
    or
    Argyle Communications
    Karen Passmore
    (North American and gaming industry media)
    (416) 968-7311 ext 228
    kpassmore@argylecommunications.com
    or
    Argyle Communications
    Daniel Tisch
    (North American and gaming industry media)
    (416) 968-7311 ext 223
    dtisch@argylecommunications.com
    or
    Corfin Communications
    Neil Thapar
    (UK media only)
    +44 207 977 0020
    or
    Corfin Communications
    Harry Chathli or Alexis Gore
    (UK media only)
    +44 207 977 0020