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

CryptoLogic Limited

February 23, 2009 02:00 ET

Ex-CEO in Breach of Contractual Obligations to CryptoLogic

Company seeks return of EUR 1.543 million

DUBLIN, IRELAND--(Marketwire - Feb. 23, 2009) - CryptoLogic Limited (TSX:CRY)(TSX:CXY)(NASDAQ:CRYP)(LSE:CRP), a world leader in Internet casino and branded gaming software, today announced that it has served notice on ex-CEO Javaid Aziz that he is in material breach of various contractual obligations related to his severance from the company.

Upon such material breach, CryptoLogic is entitled to the return of the EUR 1.543 million currently held in escrow in connection with the company's obligation to pay Mr. Aziz this amount in the event that a change of control of the company occur on or prior to April 30, 2009. The company has accordingly taken steps to seek redress pursuant to its agreements with Mr. Aziz, including seeking the release of the escrow funds.

CryptoLogic continues to assess its legal position and its options in this regard, and reserves the right to take additional steps, and seek additional remedies, as and when appropriate.

"While we regret being forced to take this step, CryptoLogic made substantial payments and commitments to Mr. Aziz in negotiating his severance, and we believe that his failure to adhere to his obligations has been damaging to the company and its shareholders," said Brian Hadfield, CryptoLogic's President and CEO. "This action is necessary to protect the interests of the company and its shareholders, which is at all times the sole focus of management and the board."

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this news 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
    Jason Graham
    (North American and gaming industry media)
    (416) 968-7311, ext 229
    jgraham@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