Cryptologic Casinonachrichten

[Cabo]

13.06.2005

CRYPTOLOGIC INTRODUCES 14 NEW INTERNET CASINO GAMES

With Casino Bonus Pack 7, blue-chip e-gaming software leader offers more popular, innovative games

June 13, 2005 (Toronto, ON) - CryptoLogic Inc., a leading blue-chip e-gaming software developer to the global Internet gaming market, today announced the introduction of 14 new casino games to its ever-expanding product suite used by many of the world's top Internet casinos. Bonus Pack 7, offered through CryptoLogic's subsidiary, WagerLogic Limited, debuts 12 new variations of highly-popular, multi-line video slots and two new scratch card games - the first ever developed by CryptoLogic.

"CryptoLogic's strength lies in developing - and delivering - innovative games that Internet gamers truly enjoy playing," said Lewis Rose, CryptoLogic's President and CEO. "Players love the excitement of multi-line slot play with added elements of skill through arcade-style bonus rounds. Bonus Pack 7 extends CryptoLogic's competitive lead with a fresh array of multi-level video slots, more bonus features, and more chances to win. That's exciting news for our customers, for their players, and for our business."

Responding to the huge popularity of the company's first 20-line slot game introduced last year, Bonus Pack 7 features eight new 20-line themed slots, including Around the World, Reel Renovations and Daily Horoscope. There are also four additional 9-line video slots, including Mr. Rich, a new Rapid Fire jackpot slot, and a multi-line version of the favourite Millionaires Club progressive jackpot game - which has already netted one lucky winner a record-breaking US$774,024 jackpot.

The new software package also introduces the first Scratch Card games ever offered by WagerLogic - High Fashion and Money Farm. The new games are an entertaining addition to WagerLogic's rapidly expanding portfolio.

As a pioneer and global leader in the $12 billion online gaming industry, CryptoLogic continues to strengthen its position with a growing range of software products for the world's major Internet casino and poker markets. The company is also expanding its system capacity to accommodate rapid growth and player demand, and continues to work with many of the world's most trusted gaming brands.



CRYPTOLOGIC STELLT 14 NEUE INTERNETS CASINO SPIELE VOR

Mit Casino Bonuspaket 7 Casino, verkündeten die erstrangigen populäreren Casinosoftware-Führerangebote, erfinderische Spiele Juni 13, 2005 (Toronto, AN) - CryptoLogic Inc., ein führender erstrangiger Casinospiel-Software-Entwickler zum globalen Internet-Spielmarkt, heute die Einleitung von 14 neuen casinospielen zu seinem überhaupt-erweiternproduktsuite, der durch viele der oberen Internet-casinos der Welt benutzt wurde.

Prämiensatz 7, angeboten durch die Cryptologic-Tochtergesellschaft WagerLogic, beinhaltet 12 neue Veränderungen der hoch-populären, Mehrkanalvideospielautomaten und zwei neuer Kratzerkartenspiele - das erste entwickelt von CryptoLogic. "Die Stärke von Cryptologic liegt in sich entwickelnden - und liefernd - erfinderischen Spielen, die Internet-gamers wirklich genießen, zu spielen," sagte Lewis Rose, kryptologischer Präsident und CEO.

"Spieler lieben den Excitement des Mehrkanalslotspiels mit zusätzlichen Elementen der Fähigkeit durch Arcadeartprämienumläufe.

Prämiensatz 7 verlängert kryptologische konkurrierende Leitung mit einer frischen Reihe multi-level videoslots, mehr Prämieneigenschaften und mehr Wahrscheinlichkeiten zu gewinnen.
Das regt Nachrichten für unsere Kunden, für ihre Spieler und für unser Geschäft."auf, Die Reaktion auf die sehr große Popularität des ersten Spiels des Schlitzes 20-line der Firma stellte letztes Jahr, Eigenschaften des Prämiensatzes 7, die acht neue 20-line die Schlitze themed vor und umfaßte um die Welt, die Bandspuleerneuerungen und das tägliche Horoscope.

Es gibt auch vier zusätzliche videoslots 9-line, einschließlich Mr. Rich, einen neuen schnellen Feuerjackpotschlitz und eine Mehrkanalversion des progressiven jackpotspiels der Lieblingsmillionairesvereins - das bereits einen glücklichen Sieger ein notieren-brechendes jackpot US$ 774,024 gewonnen hat.

Das neue Softwarepaket stellt auch die ersten Kratzerkartenspiele vor, die überhaupt von WagerLogic - hoher Art- und Weise und Geldbauernhof angeboten werden. Die neuen Spiele sind eine unterhaltene Hinzufügung zu WagerLogics, das schnell Mappe erweitert. Als Pionier- und globaler Führer in der on-line-Industrie des Spiels $12 Milliarde, kryptologisch fährt fort, seine Position mit einer wachsenden Strecke der Software-Produkte für die internet-casino- und -Pokermärkte der Welt zu verstärken Haupt. Die Firma erweitert auch seine Systemkapazität, schnelle Wachstum- und Spielernachfrage unterzubringen und fährt fort, mit vielen der verläßlichsten Spielmarken der Welt zu arbeiten.

[Cabo]

23.06.2005

CRYPTOLOGIC TAKES POKER SOFTWARE TO HIGH-SPEEDS

New Lightning™ games & lower-limit tables expand player choice of stake size, speed of play to match their skill level

June 23, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today that its wholly-owned subsidiary, WagerLogic Limited, has released new enhancements to the poker software used by its licensees, some of the leading Internet poker sites around the world. New features include high-speed Lightning games and an expanded range of lower-limit games that offer Internet poker players a broad choice of games at their desired speed and levels.

"For CryptoLogic, it's about delivering market-targeted products to our customers for greater player choice, entertainment and revenue potential," said Lewis Rose, CryptoLogic's President and CEO. "Whether you're an amateur or a poker aficionado, CryptoLogic software offers the game you want, at the speed you want, in multi-currencies - and around the clock."

New Lightning games are ideal for players looking for high-speed action. The games offer the same fun and rules as regular games, but at increased speed of play - players have only 12 seconds to act or hands are folded, and blinds are posted automatically. WagerLogic has also added 10 new game levels for players who prefer lower-stake games, including 0.15/0.25 No Limit and Pot Limit games, and 0.25/0.50 and 0.50/1.00 Limit games. These newest features can be found at top Internet poker sites, including williamhillpoker.com, betfairpoker.com, interpoker.com, littlewoodspoker.com, classicpoker.com, ukbettingpoker.co.uk, theritzclublondon.com, sunpoker.com, totalbetpoker.co.uk, and pokerplex.com.

"We are excited to offer one of the most extensive poker offerings on the Internet from 0.15/0.25 to 150/300 that give players a variety of games to play," said Andy Goetsch, CryptoLogic's Vice President, Poker Software Development. "From play for free action at a speed you can learn, to high stakes, fast-paced poker to tournaments, we're showing that CryptoLogic cares about poker and the heart of the Internet player."

Ongoing investment in WagerLogic's poker software is paying off for its customers, and is resulting in strong player traffic and engaging player experience. Most recently, more than 20 players qualified at WagerLogic licensees' online tournaments to play in the $10,000 World Series of Poker New Orleans Circuit Event in May 2005 - one of the most prestigious land-based tournaments with over 200 players competing for a more than $2 million prize pool - and three licensees' players achieved a dream come true by making it to the final table and winning more than $220,000 in aggregate.

The global Internet poker industry has grown dramatically, and is forecasted to reach $2.9 billion this year - up from $100 million less than three years ago. The launch of the new Lightning and lower-stake games are the latest enhancements to CryptoLogic-developed software that powers one of the top five revenue-generating poker sites on the Internet, according to PokerPulse.com, an independent research site. CryptoLogic continues to advance its market leadership in Internet poker by investing in strong partnerships with trusted, brand name licensees, and in product development and system scalability that meet the needs of online poker players.

[Cabo]

23.06.2005

NOTICE OF OWNERSHIP INTEREST IN CRYPTOLOGIC

June 23, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced that on June 22, 2005 it received notification from Fidelity Management and Research Co., a US investment fund, that the fund's interest in CryptoLogic was 1,394,200 common shares or approximately 10% of the Company's current shares outstanding.

About CryptoLogic® (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Inc. is the world's leading, blue-chip public online gaming software developer and supplier. 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 an internationally-recognized blue chip customer base worldwide. For information on WagerLogic®, visit www.wagerlogic.com.

[Casinonews]

11.07.2005

WORLD SERIES OF POKER LEADER HONED SKILLS USING CRYPTOLOGIC-DEVELOPED SOFTWARE

Norway's Haakon Waerstad is an online poker player at Betfair.com
July 11, 2005 (Toronto, ON) - Going into Monday's action, the leader at the World Series of Poker (WSOP) - the game's premier event - was an Internet poker player who honed his skills using software developed by CryptoLogic, a leading software developer for the global Internet gaming market.

Haakon Waerstad of Oslo, Norway, was the chip leader going into today's action in Las Vegas. Waerstad had an impressive chip count of $169,200, a lead of almost $13,000 over his closest competitor. He led an impressive list that includes a record number of Internet poker players competing at this year's WSOP.

Waerstad qualified for the tournament through betfair.com, a leading poker site that uses software developed by CryptoLogic and licensed by WagerLogic, the company's software licensing subsidiary. Of the 102 players who qualified online at WagerLogic licensees' sites, 35 were still in the tournament this morning.

"For an Internet poker player, leading the World Series of Poker is the dream of a lifetime," said Andy Goetsch, CryptoLogic's Vice President of Poker Software Development, himself a world-class player. "For CryptoLogic, this is an exciting validation of our investment in our Internet poker software. Whether it's playing for fun or playing for real, players like Haakon Waerstad know that CryptoLogic software delivers the game you want, when you want it."

Betfair launched its Internet poker site in 2004, following an agreement with WagerLogic. Since then, Betfair has become one of the world's most popular Internet poker sites.

"At the World Series of Poker, you need the right cards, but you also need the right experience," said A.J. Slivinski, WagerLogic's Managing Director. "It's clear that our software enables customers like Betfair to offer both the entertainment and the experience that turns Internet poker players into some of the best competitors in the world."


WORLD-REIHE ABGEZOGENE FÄHIGKEITEN DES POKER FÜHRER MIT Kryptologisch-entwickeltem SOFTWARE ist Haakon Waerstad Norwegens ein on-line-Pokerspieler an Betfair.com Juli 11, 2005 (Toronto, AN) - einsteigend in eine Tat Montages, der Führer an der Weltreihe von Poker (WSOP) - der Premierfall des Spiels - war- ein Internet-Pokerspieler, der seine Fähigkeiten mit der Software abzog, die von CryptoLogic entwickelt wurde, ein führender Software-Entwickler für den globalen Internet-Spielmarkt. Haakon Waerstad von Oslo, Norwegen, war der Spanführer, der in eine heutige Tat in Las Vegas einsteigt. Waerstad hatte einen eindrucksvollen Spanzählimpuls von $169.200, eine Leitung von Over fast $13.000 sein nähster Konkurrent. Er führte eine eindrucksvolle Liste, die eine Rekordanzahl von den Internet-Pokerspielern umfaßt, die an diesjährigem WSOP konkurrieren. Waerstad qualifizierte für die Turniere durch betfair.com, ein führender Pokeraufstellungsort, der die Software benutzt, die von CryptoLogic entwickelt wird und von WagerLogic genehmigt ist, die genehmigende Tochtergesellschaft der Software der Firma. Der 102 Spieler, die online an den Aufstellungsorten der Lizenznehmer WagerLogic qualifizierten, waren 35 noch in den Turnieren heute morgen. "für einen Internet-Pokerspieler, die Weltreihe von Poker ist- zu führen der Traum einer Lebenszeit,", sagte Andy Goetsch, kryptologischer Vizepräsident der Poker-Software-Entwicklung, selbst ein Welt-Kategorienspieler. "für kryptologisches, dieses ist eine aufregende Gültigkeitserklärung unserer Investition in unserer Internet-Poker-Software. Ob sie für Spaß spielt oder für reales spielt, Spieler, wie Haakon Waerstad wissen, daß kryptologische Software das Spiel liefert, das Sie wünschen, wenn Sie wünschen es.", Betfair stieß seinen Internet-Pokeraufstellungsort 2004 aus und folgte einer Vereinbarung mit WagerLogic. Seit damals hat Betfair gewordenes der Internet-Pokeraufstellungsorte der Welt populärsten. "an der Weltreihe von Poker, benötigen Sie die rechten Karten, aber Sie benötigen auch die rechte Erfahrung,", sagte A.J. Slivinski, WagerLogics geschäftsführender Geschäftsführer. "es ist frei, daß unsere Software Kunden wie Betfair ermöglicht, die Unterhaltung und die Erfahrung anzubieten, die macht Internet-Pokerspieler zu einige der besten Konkurrenten in der Welt."

[Casinonews]

18.07.2005

CRYPTOLOGIC-DEVELOPED SOFTWARE HELPS PUT NINE PLAYERS "IN THE MONEY" AT THE WORLD SERIES OF POKER

Online poker players on customer sites win over $850,000 at world's top poker tournament
July 18, 2005 (Toronto, ON) - Nine Internet poker players who honed their skills using software developed by CryptoLogic, a leading software developer for the global Internet gaming market, and licensed through its WagerLogic subsidiary, have finished "in the money" at the elite World Series of Poker (WSOP) championship event in Las Vegas. The nine players, who finished in the top ten percent of all competitors, collectively won more than $850,000 - with one player, John McGrane, finishing in the top 20.

Playing 78 hours of poker in six days, McGrane placed 18th out of more than 5,600 players who started the championship tournament. Making it to the final two tables, McGrane took home $350,000 in prize money.

McGrane qualified for the WSOP through a $40 online tournament at williamhillpoker.com, a leading poker site that uses software developed by CryptoLogic. 102 players won their way to the WSOP through WagerLogic licensees' sites: interpoker.com, williamhillpoker.com, betfairpoker.com, littlewoodspoker.com, theritzclublondon.com, ukbettingpoker.co.uk, sunpoker.com, pokerplex.com, and classicpoker.com - winning a package worth more than $14,000 including a seat in the championship event.
"Thanks to great players and CryptoLogic software focused on meeting the needs of the Internet poker player, we've had an amazing run at the World Series of Poker," said Andy Goetsch, CryptoLogic's Vice President of Poker Software Development and a world-class player in his own right. "The WSOP is poker at its finest. It's about the cards, but it's also about a player's skill - and to see so many users of CryptoLogic software finish in the money is a tribute to the Internet poker experience we deliver."

The final $10,000 buy-in no limit Texas hold'em championship event attracted a record 5,619 entries for a prize pool exceeding $52 million. The 2005 WSOP grand prize was $7.5 million, up from $2.5 million in 2003. Entries for the event have increased by more than 550 per cent over the past two years - a strong indication that poker's popularity continues to grow.

"This is the first time our licensees have sent players to the World Series of Poker - with phenomenal results," said A.J. Slivinski, WagerLogic's Managing Director. "It's clear that their players have what it takes, and that our software delivers. We look forward to seeing many more players qualify through our licensees in next year's event."




Von Cryptologic entwickelte Casinosoftware verhalf Spielern zum Erfolg "IM GELD" bei der World Series of Poker (WSOP)

Online-Pokerspieler gewannen auf Kundenseiten über $850.000 an den oberen Pokerturnieren Juli 18, 2005 der Welt (Toronto, AN) - neun Internet-Pokerspieler, die ihre Fähigkeiten mit der Software abzogen, die von CryptoLogic, ein führender Software-Entwickler für den globalen Internet-Spielmarkt entwickelt wurde und durch seine Tochtergesellschaft WagerLogic genehmigt war, haben beendet "im Geld" an der Ausleseweltreihe des Meisterschaftfalls des Poker (WSOP) in Las Vegas. Die neun Spieler, die in den oberen 10 Prozent aller Konkurrenten beendeten, gewannen zusammen mehr als $850.000 - mit einem Spieler, John McGrane und beendeten in den oberen 20. 78 Stunden von Poker an sechs Tagen spielend, setzte McGrane 18. aus mehr als 5.600 Spielern heraus, die die Meisterschaftturniere begannen. Es zu den abschließenden zwei Tabellen bildend, nahm McGrane Haus $350.000 im prize Geld. McGrane qualifizierte für das WSOP durch $40 on-line-Turniere an williamhillpoker.com, ein führender Pokeraufstellungsort, der die Software benutzt, die von CryptoLogic entwickelt wird. 102 Spieler gewannen ihre Weise zum WSOP durch Aufstellungsorte der Lizenznehmer WagerLogic: interpoker.com, williamhillpoker.com, betfairpoker.com, littlewoodspoker.com, theritzclublondon.com, ukbettingpoker.co.uk, sunpoker.com, pokerplex.com und classicpoker.com - Gewinnen eines Pakets wert mehr als $14.000 einschließlich eines Sitzes im Meisterschaftfall. von "Dank der großen Spieler und kryptologische Software konzentrierte auf das Erfüllen der Bedürfnisse des Internet-Pokerspielers, haben wir ein Überraschen laufen an der Weltreihe von Poker, gehabt", sagte Andy Goetsch, kryptologischer Vizepräsident Poker-Software Entwicklung und ein Welt-Kategorienspieler in seinem eigenen Recht. "das WSOP ist Poker an seinem feinsten. Es ist über die Karten, aber es ist auch über die Fähigkeit eines Spielers - und zu sehen also ist viele Benutzer des kryptologischen Software-Endes im Geld ein Tribut zur Internet-Pokererfahrung, die wir liefern.", Die abschließenden $10.000 kaufen keinen Begrenzungstexashold'em-Meisterschaftfall anzogen Eintragungen einer Aufzeichnung 5.619 für eine prize Lache ein, die $52 Million übersteigt. Der großartige Preis mit 2005 WSOP war $7,5 Million, herauf von $2,5 Million 2003. Eintragungen für den Fall haben um mehr als 550 Prozent über den letzten zwei Jahren - eine starke Anzeige zugenommen, die Popularität des Pokers fortfährt, zu wachsen. "dieses ist, das erste mal unsere Lizenznehmer Spieler zur Weltreihe von Poker geschickt haben - mit phänomenalen Resultaten,", sagte A.J. Slivinski, WagerLogics geschäftsführender Geschäftsführer. "es ist frei, daß ihre Spieler haben, was es nimmt, und daß unsere Software liefert. Wir freuen, viel mehr Spieler zu sehen qualifizieren durch unsere Lizenznehmer im Fall des folgenden Jahres."

[Casinonews]

02.08.2005
CRYPTOLOGIC DECLARES QUARTERLY DIVIDEND
August 2, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today that its Board of Directors has declared the company's quarterly dividend of US$0.05 per common share. The dividend will be paid on September 15, 2005 to shareholders of record as at September 8, 2005.

CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY), on the Nasdaq National Market (symbol: CRYP), and on the Main Market of the London Stock Exchange (symbol: CRP).


CRYPTOLOGIC ERKLÄRT QUARTALSDIVIDENDE August 2, 2005 (Toronto, AN) - CryptoLogic Inc., ein führender Software-Entwickler zum globalen Internetcasino-Spielmarkt, heute verkündet, daß seine Direktion die Quartalsdividende der Firma von USS0.05 pro allgemeinen Anteil erklärt hat. Die Dividende ist an September 15, 2005 zu den Aktionären der Aufzeichnung wie bei September 8, 2005 zahlend. CryptoLogic's allgemeine Anteile handeln auf der Börse Torontos (Symbol: SCHREI), auf dem nationalen Markt Nasdaq (Symbol: CRYP) und auf dem Hauptmarkt der Börse Londons (Symbol: CRP).

[Casinonews]

04.08.2005
CRYPTOLOGIC DELIVERS STRONG SECOND QUARTER PERFORMANCE

Q2 revenue up 33%, earnings up 48% as focused strategy and investments continue to pay off
August 4, 2005 (Toronto, ON) – CryptoLogic Inc., a leading software developer to the global Internet
gaming market, today announced its financial results for the second quarter and six months ended June
30, 2005. In this seasonally softer period for online gaming, CryptoLogic delivered strong revenue,
excellent earnings and positive operating cash flow due to continued organic growth from existing
customers in the company’s primary Internet casino and Internet poker markets.
“CryptoLogic continues to benefit from both the right products and the right strategy,” said Lewis Rose,
CryptoLogic’s President and CEO. “For CryptoLogic, this means offering the best games to some of the
world’s best gaming brands and investing in the world’s best markets for online gaming. That’s why
we’re achieving positive returns through solid casino performance and 17% sequential quarterly growth
in poker, well ahead of the Internet poker industry.”

Financial Highlights
(in millions of US dollars, except per share data)
Three months ended
June 30,
Six months ended
June 30,
2005 2004 2005 2004
Revenue $19.9 $14.9 $40.2 $30.1
Earnings $4.7 $3.2 $9.6 $7.0
Earnings per diluted share $0.33 $0.23 $0.67 $0.52
Fiscal 2005 second quarter highlights included:

· Quarterly revenue grew 33% to $19.9 million, and earnings grew 48% over Q2 2004 to $4.7 million
or $0.33 per diluted share. This exceeded analysts’ average consensus of $0.30 per diluted share;

· Internet poker fees derived from the company’s WagerLogic subsidiary rose approximately 180%
over Q2 2004, and increased 17% over Q1 2005. Poker accounted for more than 30% of Q2 2005
revenue. Continued growth from Internet poker licensees and an expanding poker offering
contributed to these strong results;

· CryptoLogic released new enhancements to its poker software, including high-speed LightningÔ
games and an expanded range of lower-limit tables. These enhancements gave players more choice
of games at their desired speed and skill level;

· Internet casino revenue derived from WagerLogic continued steady growth, rising almost 4% over Q2
2004, and remained a major revenue generator, accounting for approximately 60% of total Q2 2005
revenue;

· Product innovation saw Bonus Pack 7 of the company’s casino software introduce a suite of 12 new
variations of highly popular, multi-line video slots and two new scratch card games – the first ever
developed by CryptoLogic;

2
· The company continued to enjoy excellent geographic diversification with licensees’ revenue from
international markets exceeding 65% of total revenue, up from over 60% in 2004; and

· A quarterly dividend of $0.05 per share will be payable on September 15, 2005 to shareholders of
record as at September 8, 2005.

Q2 Results: Strong Revenue, Excellent Earnings (all financial figures expressed in US dollars)
CryptoLogic’s strong revenue and earnings momentum continued in the second quarter ended June 30,
2005. Revenue rose 33% to $19.9 million (Q2 2004: $14.9 million). EBITDA(1) for the quarter grew
26% to $5.6 million (Q2 2004: $4.4 million). Despite increased costs associated with investing in the
growth of the company’s business to drive higher revenue generation, EBITDA(1) margin for the quarter
remained solid at 28% as a percentage of revenue (Q2 2004: 30%). Earnings for the quarter rose 48% to

$4.7 million or $0.33 per diluted share (Q2 2004: $3.2 million or $0.23 per diluted share).
CryptoLogic achieved excellent second quarter performance notwithstanding the traditional softness of
this period for online gaming. The company attributed this success to steady organic growth from
existing customers in the company’s core casino market, and to the continuing high growth of licensees’
Internet poker businesses.

As previously detailed, in Q3 2004, CryptoLogic embarked on a $12.5 million investment program to
support the company’s long term growth, and this continuing program contributed to the second quarter’s
positive results. As at Q2 2005, the company had invested approximately 74% ($9.2 million) of this
program, of which $3.3 million were operating costs and $5.9 million were capital expenditures
(comprising $3.2 million for the purchase of capital assets and $2.7 million in capitalized software
development related to the investment program).

Revenue for the first half of 2005 increased 33% to $40.2 million (Q2 2004 YTD: $30.1 million).
EBITDA(1) for the first six months in 2005 rose by 26% to $11.4 million (Q2 2004 YTD: $9.0 million).
EBITDA(1) margin for the first six months in 2005 remained solid at 28% as a percentage of revenue (Q2
2004 YTD: 30%). Earnings for the first half of 2005 improved by 36% to $9.6 million or $0.67 per
diluted share (Q2 2004 YTD: $7.0 million or $0.52 per diluted share).

Balance Sheet Strength: Healthy Cash Flow, No Debt
At June 30, 2005, CryptoLogic had no debt, and total cash grew to $93.0 million or $6.53 per diluted
share (comprising cash and cash equivalents, short term investments, and including security deposits of
$7.0 million). CryptoLogic’s working capital rose to $72.6 million or $5.10 per diluted share.

On August 2, 2005, CryptoLogic’s Board declared the next quarterly dividend of $0.05 per share, payable
on September 15, 2005 to shareholders of record as at September 8, 2005.

Operating cash flow for the second quarter of 2005 rose to $6.6 million (Q2 2004: $2.6 million). This
increase was largely attributed to higher earnings as well as timing of accounts receivables and payables.

Geographic Diversification: UK and Europe Lead the Way
CryptoLogic’s business continued to be well-diversified across the world’s major Internet gaming
markets. Revenue generated from licensees’ international players remained on target at more than 65% of
Q2 2005 revenue, up from over 60% in 2004. The UK and Continental Europe continued to be the largest
markets, together accounting for more than 60% of overall revenue in the quarter.


Product Expansion: New Games, New Features
CryptoLogic’s ongoing investment in its poker software and system infrastructure continued to pay off.
In the quarter, fees earned from Internet poker rose approximately 180% over Q2 2004, and up 17% over
the first quarter of this year. Online poker fees accounted for more than 30% of total Q2 2005 revenue.
The company’s newly enhanced poker software, which now includes high-speed LightningÔ games and
an expanded range of lower-limit tables, added to one of the most extensive poker offerings on the
Internet. The software gives players greater choice to play the game they want, at the speed they want,
for the stakes they want, and in multiple currencies. Today, the fast-growing central poker room shared
by WagerLogic licensees attracts more than 6,700 simultaneous online players, and its system capacity
has been expanded to support growth to more than 16,000.

Internet casino remained a healthy cash contributor, accounting for approximately 60% of total Q2 2005
revenue and growing almost 4% over Q2 2004. The Internet casino market, while more developed than
Internet poker, continues to offer vast potential as it still represents less than five percent of the world’s
land-based casino market (source: Global Betting & Gaming Consultants). In this environment, new
market-targeted games are key drivers of growth; accordingly WagerLogic released Bonus Pack 7, a
package of 12 new multi-line video slot and jackpot games with added elements of skill through arcadestyle
bonus rounds, and introduced the company’s two first-ever scratch cards.

Outlook
CryptoLogic’s disciplined execution and targeted investments in its primary Internet casino and Internet
poker markets continued to generate strong revenue, profitability and cash flow. Although the third
quarter is expected to benefit from the new casino games and the continued strength in poker, the summer
months are seasonally the slowest period of the year as Internet activity tends to soften, particularly in the
casino segment. Management forecasts third quarter revenue to range from $19.4-$19.7 million, with
earnings of $4.5-$4.7 million or $0.31-$0.32 per diluted share.

CryptoLogic’s major investment program is continuing on schedule, and has already translated into
growing near term returns. The program’s goal is to enhance the company’s long term global leadership
and competitive advantage.

2005 Second Quarter Analyst Call
A conference call is scheduled for 8:30 a.m. (Eastern) (1:30 p.m. GMT) on Thursday, August 4, 2005.
Interested parties should call either 416-695-5259, 1-877-888-3490 (North America) or international toll
free number at (Country Code) 800-4222-8835. Instant replay will be available until Thursday, August
11, 2005 by calling 416-695-5275 or 1-866-518-1010.
About CryptoLogic (www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Inc. is the world’s 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 an internationally-recognized blue-chip customer base worldwide. For information on WagerLogic, visit www.wagerlogic.com.

CryptoLogic’s common shares trade on the Toronto Stock Exchange (symbol: CRY), on the Nasdaq National
Market (symbol: CRYP), and on the Main Market of the London Stock Exchange (symbol: CRP).

For more information, please contact:
CryptoLogic, (416) 545-1455 Argyle Rowland, (416) 968-7311 ( Media)
Nancy Chan-Palmateer, Director of Communications Daniel Tisch, ext. 223/ dtisch@argylerowland.com
Jenifer Cua, Interim Chief Financial Officer Kyla Thoms, ext. 237/ kthoms@argylerowland.com
(1) Management believes that EBITDA (earnings before interest, taxes, and amortization) is a useful supplemental measure of performance.

However, EBITDA is not a recognized earnings measure under generally accepted accounting principles (GAAP) and does not have a standardized meaning. Therefore, EBITDA may not be comparable to similar measures presented by other companies.

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.


MANAGEMENT’S DISCUSSION AND ANALYSIS
CryptoLogic Inc. and our subsidiaries are referred collectively as “CryptoLogic”, “the Company”, “we”,
“us” and “our” throughout Management’s Discussion and Analysis (“MD&A”), unless otherwise
specified. The following MD&A should be read in conjunction with the unaudited consolidated interim
financial statements of CryptoLogic, including the notes thereto, for the three and six months ended June
30, 2005 and June 30, 2004, and the audited consolidated financial statements and the MD&A for the year
ended December 31, 2004 as set out in our 2004 Annual Report. Except where otherwise indicated, the
reader may assume that economic and industry factors are substantially unchanged from the 2004 yearend
MD&A. This MD&A is dated August 4, 2005. Additional information relating to CryptoLogic,
including our Annual Information Form, is available on SEDAR at www.sedar.com or EDGAR at www.sec.gov.

All currency amounts are in US dollars, unless otherwise indicated.

BUSINESS OVERVIEW
CryptoLogic is a world leading and long-standing publicly traded online gaming software developer and
supplier serving the global Internet gaming market. WagerLogic Limited (“WagerLogic”), a whollyowned
subsidiary of CryptoLogic, provides software licensing, e-cash management and customer support
services for our Internet gaming software to an internationally-recognized blue-chip client base
(“licensees” or “customers”) around the world who operate under government authority where their
Internet businesses are domiciled.

OVERVIEW OF RESULTS
In the second quarter of 2005, CryptoLogic continued to enjoy growth and enhanced market leadership in
both our primary Internet casino and Internet poker markets. We continued to achieve our focused
strategy and benefit from the organic growth of a core group of blue-chip international customers,
supported by strategic investments in key areas of our business.

In the more competitive and increasingly demanding online casino market, licensees benefited from
WagerLogic’s broadening casino offering and ongoing introduction of new game choices and variations
that help attract players and increase revenue potential. Fees from Internet casino continued to be a
major cash generator, accounting for approximately 60% of overall Q2 2005 revenue, and rose almost 4%
over Q2 2004. WagerLogic licensees’ central poker room continued to be one of the fastest growing
poker sites on the Internet. Our fees from Internet poker for Q2 2005 grew approximately 180% over Q2
2004, compared with the overall Internet poker industry growing at a pace of about 110% (source:
PokerPulse.com, an independent industry research Web site). New poker software features and games
were contributing factors to our licensees’ growth in this rapidly-growing game area.

Revenue rose 33% for both the second quarter of 2005 to $19.9 million (Q2 2004: $14.9 million), and to
$40.2 million for the first half of 2005 (Q2 2004 YTD: $30.1 million). EBITDA(1) increased by 26% for
both the second quarter of 2005 to $5.6 million (Q2 2004: $4.4 million), and to $11.4 million on a yearto-
date basis (Q2 2004 YTD: $9.0 million). Despite increased investments to drive higher revenue
generation, EBITDA(1) margin remained solid at 28% as a percentage of revenue for both the second
quarter and the first half of 2005 (Q2 2004 and YTD: 30%). Furthermore, earnings increased by 48% to
$4.7 million or $0.33 per diluted share (Q2 2004: $3.2 million or $0.23 per diluted share), and grew by
36% to $9.6 million or $0.67 per diluted share in the first half of 2005 (Q2 2004 YTD: $7.0 million or
$0.52 per diluted share).

CryptoLogic’s strong balance sheet continued to be reflected in $93.0 million in cash, cash equivalents
and short term investments (including $7.0 million in security deposits) at quarter-end. Working capital
grew to $72.6 million.

CryptoLogic continued to benefit from the early incremental returns of our major investment program,
which is aimed at driving our long term growth. Since the program’s implementation four quarters ago,
approximately 74%, or $9.2 million of this program, has been invested. Even with these higher
investments, we have posted solid margins derived from strong revenue generation.

RESULTS OF OPERATIONS
Revenue
Revenue increased 33% for both the second quarter of 2005 to $19.9 million (Q2 2004: $14.9 million),
and on a year-to-date basis to $40.2 million (Q2 2004 YTD: $30.1 million). In what is typically one of
the two seasonally slower quarters of the year for Internet gaming, CryptoLogic generated strong second
quarter revenue in 2005. Excellent top-line results reflected the growth of licensees’ Internet poker
activities and continued healthy performance in their Internet casino businesses. CryptoLogic continued
to also benefit from the near term returns of our major investment program directed at key areas of our
business: our casino and poker software offerings, system infrastructure and scalability, and back-office
and customer care improvements.

During the quarter, Internet poker fees increased approximately 180% over Q2 2004, and up 17%
sequentially over Q1 2005. Internet poker fees exceeded 30% of Q2 2005 revenue. This growth was
driven by the continued growth of existing poker licensees, which was supported by ongoing
enhancements of our poker software. New features included high-speed LightningÔ games and a wider
range of lower-limit games with the addition of 10 new game levels to offer stake levels from 0.15/0.25 to
150/300 (in various currencies) to give players a greater variety of games at their desired speed and level.
Tournament games also continued to attract more players, particularly with licensees offering online
tournaments to qualify for the World Series of Poker – the world’s premier land-based poker event held
this July. With more than 6,700 live players simultaneously online and system capacity expanded to
support growth to more than 16,000, WagerLogic licensees’ central poker room continued to be one of
the top-revenue generating rooms on the Internet, according to PokerPulse. Poker licensees are expected
to experience continued strength as they benefit from WagerLogic’s enhanced poker offering and
capitalize on the fast-growing Internet poker market.

Although summer seasonality was a factor this quarter, Internet casino software fees continued to reflect
healthy performance and grew almost 4% over Q2 2004. Casino represented approximately 60% of total
Q2 2005 revenue. Our existing major brand name licensees continued to grow steadily in their online
casino businesses, and benefited from WagerLogic’s expanding casino game suite with new markettargeted
game introductions. Most recently, we released 14 new casino games, rolling out more multiline
video slots with added elements of skill and bonus rounds as well as adding two new scratch card
games – the first ever developed by CryptoLogic. We expect our broadening casino portfolio will
continue to help our licensees strengthen their market position in this competitive and more sophisticated
market segment.

Licensees’ revenue from international markets continued to be on target and accounted for more than
65% of overall Q2 2005 revenue, up from over 60% in fiscal 2004. The UK and Continental Europe
represented the vast majority or together, accounted for more than 60% of total Q2 2005 revenue.

Operating Costs
Operating costs comprise software development and support costs that include all personnel and
compensation costs, licensee support, customer service costs and compliance-related expenditures.
Operating costs were $12.4 million in Q2 2005 or 62% of revenue (Q2 2004: $9.2 million or 62%). For
the six months ended June 30, 2005, operating costs were $25.2 million or 63% of revenue (Q2 2004
YTD: $18.2 million or 61%).

Higher costs were in line with CryptoLogic’s ongoing investments directed at new casino games,
enhancement of our poker offering, an expanding system infrastructure to support growing player traffic
and volumes, and improvement of our customer care and back-office processing and support services.
Operating costs also rose with increased processing fees associated with growing financial transaction
volumes.

In Q3 2004, CryptoLogic embarked on a major investment program, which is above and beyond our
normal course expenditures, to significantly upgrade our gaming platform and system and service
infrastructure. Over the last four quarters, approximately 74%, or $9.2 million of this $12.5 million
program, has been invested as follows: $3.3 million in operating costs and $5.9 million in capital
expenditures (comprising $3.2 million for purchases of capital assets and $2.7 million in capitalized
software development associated with the program). CryptoLogic continues to benefit from the early
returns of these investments as evidenced by strong top-line performance and solid margins as we
continue to manage expenditures in proportion to revenue generation.

General and Administrative Costs
General and administrative (G&A) expenses were $1.8 million for the quarter (Q2 2004: $1.2 million).
For the first six months of 2004, G&A expenses were $3.5 million (Q2 2004 YTD: $2.7 million). The
rise in G&A costs was principally due to increased facilities and infrastructure expenditures to support a
growing organization. Given our larger company, G&A expenses will rise modestly, although are
expected to remain fairly consistent as a percentage of revenue.

Finance Costs
Finance costs include bank charges and fees for bank drafts. These costs were up marginally to $0.1
million for Q2 2005 (Q2 2004: $0.09 million), and $0.19 million on a year-to-date basis (Q2 2004 YTD:
$0.18 million) due to increased usage of bank drafts for user withdrawals.

EBITDA(1)
EBITDA(1) rose 26% for both Q2 2005 to $5.6 million (Q2 2004: $4.4 million), and on a year-to-date
basis to $11.4 million (Q2 2004 YTD: $9.0 million). Despite increased costs associated with investing in
key areas of our business and infrastructure to support long term growth, EBITDA(1) margin remained
solid at 28% as a percentage of revenue for both Q2 and year-to-date in 2005 (Both Q2 2004 and YTD:
30%). EBITDA(1) is expected to remain at solid levels as major investments continue into 2005 as
planned, but are managed in proportion to revenue generation.
(1) Management believes that EBITDA (earnings before interest, taxes, and amortization) is a useful supplemental measure of performance. However, EBITDA is not a recognized earnings measure under generally accepted accounting principles (GAAP) and does not have a standardized meaning. Therefore,

EBITDA may not be comparable to similar measures
presented by other companies.
EBITDA is reconciled to earnings as follows:
For the three months
ended June 30,
For the six months
ended June 30,
(In thousands of US dollars) 2005 2004 2005 2004
Earnings $4,739 $3,197 $9,578 $7,018
Income taxes 819 1,040 1,614 1,651
Interest income (874) (262) (1,511) (506)
Amortization 897 443 1,699 867
EBITDA $5,581 $4,418 $11,380 $9,030

Amortization
Amortization expense during the quarter rose to $0.9 million (Q2 2004: $0.4 million), and to $1.7 million
in the first six months of 2005 (Q2 2005 YTD: $0.9 million). The increase reflected higher investments
in computer equipment, leasehold improvements, software and licenses to support our growing
organization and the Company’s major investment program.

Interest Income
Interest income rose to $0.9 million in the second quarter (Q2 2004: $0.3 million), and $1.5 million in the
first six months of 2005 (Q2 2004 YTD: $0.5 million). The increase was a result of a higher cash
position and better interest yield.

Provision for Income Taxes
Income taxes for the quarter were $0.8 million (Q2 2004: $1.0 million), and $1.6 million for the first six
months of 2005 (Q2 2004 YTD: $1.7 million), which reflected a taxable income mix that was lower in
certain markets. The future income tax decline of $0.09 million arose from the change in foreign
exchange rates during the second quarter of 2005.

Earnings
Earnings for the second quarter rose 48% to $4.7 million or $0.33 per diluted share (Q2 2004: $3.2
million or $0.23 per diluted share). On a year-to-date basis in 2005, earnings increased by 36% to $9.6
million or $0.67 per diluted share (Q2 2004 YTD: $7.0 million or $0.52 per diluted share).
Summary of Quarterly Results
Fiscal
2005
Fiscal
2004
Fiscal
2003
(In thousands of US dollars, except per share data) Q2 05 Q1 05 Q4 04 Q3 04 Q2 04 Q1 04 Q4 03 Q3 03
Revenue $19,923 $20,274 $17,949 $15,616 $14,925 $15,224 $13,540 $10,944
Interest income 874 637 426 361 262 244 160 196
Earnings 4,739 4,839 3,794 2,856 3,197 3,821 3,033 2,157
Earnings per share
Basic
Diluted
0.34
0.33
0.36
0.34
0.29
0.27
0.22
0.21
0.25
0.23
0.30
0.28
0.25
0.23
0.18
0.17
Basic weighted average number of shares (000’s) 13,736 13,573 13,185 13,076 12,979 12,641 12,280 12,256
Diluted weighted average number of shares (000’s) 14,361 14,184 13,871 13,642 13,734 13,419 12,972 12,696
Typically, our first and fourth quarters (during the winter and fall seasons) are our strongest periods, and
revenue in the middle two quarters can slow down as Internet usage moderates in the summer months
when players tend to be outdoors. The more moderate sequential decrease in Q2 2005 revenue over Q1
2005 was consistent with this seasonal trend, particularly in the casino segment, which was offset by
continued high growth in Internet poker fees.

LIQUIDITY AND CAPITAL RESOURCES
In the quarter, CryptoLogic continued to add to our strong financial position. As at June 30, 2005, the
Company had no debt, and a cash position of $93.0 million or $6.53 per diluted share, which comprised
cash and cash equivalents, short term investments, and included $7.0 million of security deposits.
Working capital grew to $72.6 million or $5.10 per diluted share.
Operating cash flow in Q2 2005 was $6.6 million (Q2 2004: $2.6 million), compared with $9.2 million
on a year-to-date basis (Q2 2004 YTD: $7.7 million). This increase was largely due to higher earnings as
well as timing of accounts receivables and payables, which offset higher prepaid expenses. The rise in
prepaid expenses was primarily due to royalty licensing fees related to new games under development,
strengthening the resiliency of the Company’s network environment, and prepayment of fees related to
the World Series of Poker on behalf of our licensees.


CryptoLogic currently has 13.8 million common shares issued and outstanding, and 1.1 million stock
options and warrants outstanding.

CRITICAL ACCOUNTING POLICIES, CHANGES IN ACCOUNTING POLICIES AND OFFBALANCE
SHEET ARRANGEMENTS
These items are substantially unchanged as discussed in the Company’s MD&A for the year ended
December 31, 2004 as contained in our 2004 Annual Report.
RISKS AND UNCERTAINTIES

The primary risks and uncertainties that affect and may affect us and our business, financial condition and
results of operations are substantially unchanged from those discussed in the Company’s MD&A for the
year ended December 31, 2004 as contained in our 2004 Annual Report.

OUTLOOK
CryptoLogic’s excellent second quarter performance reaffirmed the strength of our disciplined strategy,
which is aimed at driving the organic growth of a core group of blue-chip international customers in the
major Internet casino and Internet poker markets.
While there remains vast global potential for online gaming, competition is increasing for player loyalty
and market share, as well as persistent challenges of US uncertainty. We will continue to leverage our
strong performance and financial position to invest significantly in our business to provide a
comprehensive, premium product and service offering that enhances the player experience and helps our
licensees expand revenue potential.

CryptoLogic is clearly seeing the benefits today of our focused strategy. We will continue to invest for
long term growth in order to strengthen our global leadership and achieve profitable results in both our
core casino business and the high-growth poker arena – all aimed at maximizing returns for shareholders.


CRYPTOLOGIC INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
As at
June 30,
2005
(unaudited)
As at
December 31,
2004
ASSETS
Current assets:
Cash and cash equivalents $84,025 $43,182
Security deposits 7,000 7,000
Short term investments 2,000 35,782
Accounts receivable and other 6,905 6,487
Prepaid expenses 7,183 1,754
107,113 94,205
User funds on deposit 22,557 18,908
Capital assets 12,752 9,227
Intangible assets 92 106
Goodwill 1,776 1,776
$144,290 $124,222
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $31,516 $30,056
Income taxes payable 3,054 1,331
34,570 31,387
User funds held on deposit 22,557 18,908
Future income taxes 1,590 1,840
58,717 52,135
Shareholders’ equity:
Share capital 25,402 20,380
Stock options 1,371 1,114
Retained earnings 58,800 50,593
85,573 72,087
$144,290 $124,222
CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(In thousands of US dollars)
(Unaudited)
For the three months
ended June 30,
For the six months
ended June 30,
2005 2004 2005 2004
Retained earnings, beginning of period
$54,748
$42,195
$50,593
$38,758
Earnings 4,739 3,197 9,578 7,018
Dividends paid (687) (392) (1,371) (776)
Retained earnings, end of period $58,800 $45,000 $58,800 $45,000


CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of US dollars, except per share information)
(Unaudited)
For the three months
ended June 30,
For the six months
ended June 30,
2005 2004 2005 2004
Revenue
$19,923
$14,925
$40,197
$30,149

Expenses
Operating costs 12,399 9,230 25,153 18,244
General and administrative 1,844 1,185 3,475 2,691
Finance 99 92 189 184
Amortization 897 443 1,699 867
15,239 10,950 30,516 21,986
Earnings before undernoted 4,684 3,975 9,681 8,163
Interest income 874 262 1,511 506
Earnings before income taxes 5,558 4,237 11,192 8,669

Income taxes:
Current 906 472 1,864 749
Future (87) 568 (250) 902
819 1,040 1,614 1,651
Earnings $4,739 $3,197 $9,578 $7,018
Earnings per common share
Basic $0.34 $0.25 $0.70 $0.55
Diluted $0.33 $0.23 $0.67 $0.52
Weighted average number of shares (‘000s)
Basic 13,736 12,979 13,655 12,810
Diluted 14,361 13,734 14,247 13,515


CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
(Unaudited)
For the three months
ended June 30,
For the six months
ended June 30,
2005 2004 2005 2004
Cash provided by (used in):
Operating activities:
Earnings $4,739 $3,197 $9,578 $7,018
Adjustments to reconcile earnings to
cash provided by (used in) operating activities:
Amortization 897 443 1,699 867
Future income taxes (87) 568 (250) 902
Stock options 420 274 845 537
Changes in operating assets and liabilities:
Security deposits -- -- -- (450)
Accounts receivable and other 1,383 (1,544) (418) (1,362)
Prepaid expenses (4,091) (756) (5,429) (553)
Accounts payable and accrued liabilities 2,527 225 1,460 (20)
Income taxes payable 832 218 1,723 788
6,620 2,625 9,208 7,727

Financing activities:
Issue of capital stock 553 1,482 4,434 5,892
Dividends paid (687) (392) (1,371) (776)
(134) 1,090 3,063 5,116
Investing activities:
Purchase of capital assets (3,616) (2,573) (5,208) (3,337)
Purchase of intangible assets -- -- (2) (89)
Short term investments 11,899 (7,571) 33,782 (30,558)
8,283 (10,144) 28,572 (33,984)
Increase (decrease) in cash and cash equivalents 14,769 (6,429) 40,843 (21,141)
Cash and cash equivalents, beginning of period 69,256 29,298 43,182 44,010
Cash and cash equivalents, end of period $84,025 $22,869 $84,025 $22,869
Supplemental cash flow information:
Non cash portion of options exercised
$150
$265
$588
$469
13

NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS
As at June 30, 2005
(All figures are in thousands of US dollars, except per share disclosure and where otherwise indicated)
(Unaudited)
These consolidated interim financial statements of CryptoLogic Inc. (the “Company”) have been prepared in
accordance with Canadian generally accepted accounting principles using the same accounting policies as were used
for the audited consolidated financial statements for the year ended December 31, 2004. These consolidated interim
financial statements should be read in conjunction with the audited consolidated financial statements for the year
ended December 31, 2004, as set out in the 2004 Annual Report.
1. Stock Option Plan
In accordance with the guidelines of the Canadian Institute of Chartered Accountants, the Company has expensed
the costs of all stock option grants issued on or after January 1, 2003. The fair value of the options granted for the
first six months of 2005 and 2004 was made using the Black-Scholes option pricing model under the following
weighted assumptions:
2005 2004
Dividend yield 0.75% 0.75%
Risk-free rate 3.25% 2.75%
Expected volatility 50.0% 50.0%
Expected life of options in years 5.0 5.0

The estimated fair value of options is recorded over the vesting period of the options. The costs of stock options of
$420 in Q2 2005 (Q2 2004: $274), and $845 in Q2 2005 YTD (Q2 2004 YTD: $537) are included in operating
costs. Consideration paid by employees on the exercise of stock options is recorded as share capital.
Had compensation expense been determined based on the fair value of the employee stock option awards for 2002
grants at the grant dates in accordance with the new recommendations, the Company’s earnings and earnings per
common share would have been changed to the following pro forma amounts:
Three months ended
June 30,
Six months ended
June 30,
2005 2004 2005 2004
As
reported
Pro forma
As
reported
Pro forma
As
reported
Pro forma
As
reported
Pro forma
(‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000) (‘000)
Earnings $4,739 $4,608 $3,197 $3,073 $9,578 $9,266 $7,018 $6,710
Earnings per share:
Basic $0.34 $0.33 $0.25 $0.24 $0.70 $0.68 $0.55 $0.52
Diluted $0.33 $0.32 $0.23 $0.22 $0.67 $0.65 $0.52 $0.50

2. Share Capital
Authorized:
Unlimited common shares
Issued and Outstanding:
Common Shares Series F Warrants Total
Issued Stated Value Issued Stated Value Stated Value
(‘000) (‘000) (‘000)
Balance, December 31, 2003 12,300 $11,078 30 $272 $11,350
Exercise of stock options 1,011 9,030 -- -- 9,030
Balance, December 31, 2004 13,311 $20,108 30 $272 $20,380
Balance, December 31, 2004 13,311 $20,108 30 $272 $20,380
Exercise of stock options 438 4,596 -- -- 4,596
Exercise of Series F warrants 23 630 (23) (204) 426
Balance, June 30, 2005 13,772 $25,334 7 $68 $25,402
3. Normal Course Issuer Bid

In September 2004, the Board of Directors approved a share repurchase plan, under a Normal Course Issuer Bid, to
repurchase and cancel up to 1,250,000 of the Company’s outstanding common shares for the period commencing
September 23, 2004 and ending September 22, 2005. As at June 30, 2005, the Company has not repurchased any
shares under this plan.
4. Comparative Figures
Certain of the prior period’s figures have been reclassified for consistency with the current period’s presentation.

[Casinonews]

09.08.2005

CRYPTOLOGIC ANNOUNCES BETFAIR IS CONSIDERING IN-HOUSE POKER STRATEGY FOR 2006

August 9, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced that Betfair, one of the company's poker licensees, has advised CryptoLogic of its long term intent to bring its core products in-house eventually rather than outsourcing third-party technology. Discussions continue between the companies and no definitive decision has been made on the status of Betfair's Internet poker site.

While Betfair has launched a successful, profitable site using CryptoLogic-developed software, Betfair's long term strategy and practices in its core business has been built on technology solutions designed and developed internally. Decisions consistent with this strategy could result in Betfair establishing its own poker room and the termination of its contract with WagerLogic Limited, the licensing subsidiary of CryptoLogic, in early 2006.

WagerLogic's central poker room, shared by all of its poker licensees, is experiencing record growth - 180% over a year ago, well ahead of the industry. CryptoLogic's strategy would be to offset the potential departure of Betfair with continued strong growth from poker, healthy results from its core casino business, and the potential signing of new licensees.

If Betfair were to leave the central poker room, it is not expected to affect CryptoLogic's 2005 results, but could have a material affect on 2006 earnings if this revenue is not replicated with growth from other existing and potential new licensees. While Internet poker is growing and accounts for 30% of CryptoLogic's Q2 2005 revenue, CryptoLogic's core business remains its casino software. This segment continues to deliver excellent performance and is the company's largest cash contributor at approximately 60% of total revenue.

Once a definitive decision has been made, CryptoLogic will update shareholders and provide interim guidance as appropriate. CryptoLogic's earnings guidance for the third quarter of 2005 remains on target.

WagerLogic's central poker room has consistently ranked among the top five poker rooms on the Internet. CryptoLogic's strategy of aggregating its licensees' brands, large player bases and marketing resources, into a common poker room, has translated into one of the fastest-growing poker rooms on the Internet. CryptoLogic will continue to build on this strong market position and capitalize on the growth momentum in Internet poker.




CRYPTOLOGIC VERKÜNDET BETFAIR BETRACHTET innerbetriebliche POKER Strategie für August 2006
CryptoLogic Inc., ein führender Software-Entwickler zum globalen Internet-Spielmarkt, verkündet diesem Betfair, einem der Pokerlizenznehmer der Firma, hat geraten CryptoLogic seiner langen Bezeichnungsabsicht, um seine Kernprodukte schließlich zu holen, die anstatt innerbetrieblich sind, Outsourcing aus dritter Quelletechnologie. Diskussionen fahren zwischen den Firmen fort und keiner endgültigen Entscheidung ist auf dem Status des Internet-Pokeraufstellungsortes Betfairs gebildet worden.

Während Betfair ein erfolgreiches ausgestoßen hat, ist rentabler Aufstellungsort langer der Bezeichnung Strategie mit von CryptoLogic entwickelter der Software, Betfairs und Praxis in seinem Hauptgeschäftsbereich auf den Technologielösungen errichtet worden, die innerlich entworfen werden und entwickelt sind. Die Entscheidungen, die mit dieser Strategie gleichbleibend sind, konnten Betfair ergeben, das seinen eigenen Pokerraum und den Endpunkt seines Vertrages mit begrenztem WagerLogic, die genehmigende Tochtergesellschaft von CryptoLogic, frühem 2006 herstellt. Vor WagerLogics erfährt der zentrale Pokerraum, geteilt von allen seine Pokerlizenznehmer, Rekordwachstum - 180%-Over einem Jahr, gut vor der Industrie. CryptoLogic Strategie würde, die mögliche Abfahrt von Betfair mit anhaltendem starkem Wachstum vom Poker, von den gesunden Resultaten von seinem Kerncasinogeschäft zu versetzen und vom möglichen Unterzeichnen der neuen Lizenznehmer sein. Wenn Betfair den zentralen Pokerraum verlassen sollten, wird es nicht erwartet, um CryptoLogics 2005 Resultate zu beeinflussen, aber könnte ein Material auf 2006 Einkommen beeinflussen lassen, wenn dieses Einkommen nicht mit Wachstum von anderem Bestehen und von möglichen neuen Lizenznehmern wiederholt wird.

Während Internet-Poker wächst und 30% von CryptoLogics Einkommen Q2 2005 erklärt, bleibt der Cryptologic Hauptgeschäftsbereich seine casinosoftware. Dieses Segment fährt fort, ausgezeichnete Leistung zu liefern und ist das größte Bargeldmitwirkende der Firma an ungefähr 60% von Gesamteinkommen. Sobald eine endgültige Entscheidung getroffen worden ist, stellen CryptoLogic Willensupdateaktionäre und Zwischenanleitung zur Verfügung, wie passend. CryptoLogics Einkommenanleitung während des dritten Trimesters von 2005 bleibt auf Ziel. WagerLogics hat zentraler Pokerraum durchweg unter den oberen fünf Pokerräumen auf dem Internet geordnet. Cryptologics Strategie des Anhäufens der Marken seiner Lizenznehmer, große Spielerunterseiten und Marketing-Betriebsmittel, in einen allgemeinen Pokerraum, hat in einen der schnell-wachsenden Pokerräume auf dem Internet übersetzt. CryptoLogics Wille fahren fort, auf dieser Position des starken Marktes und auf dem Wachstummomentum gross zu schreiben im Internet-Poker zu errichten.

[Casinonews]

09.08.2005
CRYPTOLOGIC APPOINTS NEW CFO
Stephen Taylor brings over 20 years of senior financial experience to CryptoLogic's leadership team
August 9, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer for the global Internet gaming market, announced today the appointment of Stephen Taylor as the company's Chief Financial Officer. Taylor has more than two decades of experience in financial and business management, public markets, and mergers and acquisitions. He brings a wealth of expertise that will be an asset as CryptoLogic continues its exciting growth in the global Internet gaming market.

"We're delighted to welcome Stephen as the right person for the important role of CFO to contribute to CryptoLogic's continued growth and success," said Lewis Rose, CryptoLogic's President and CEO. "As the Internet gaming industry becomes more complex, the role of a CFO becomes more challenging. Stephen Taylor's proven business, financial and leadership skills complement those of our outstanding team - and give us a CFO who can help guide our continued expansion in the exciting years to come."

In the last 20 years, Taylor has managed businesses, financed large transactions, spearheaded mergers and acquisitions, and helped companies go public and meet the requirements of capital markets. Taylor is a Chartered Accountant, having qualified in the top one percent in Canada. He spent the first 11 years of his career at the "Big 4" accounting firm of PricewaterhouseCoopers (formerly Coopers & Lybrand) auditing multinational clients in the manufacturing, mining and financial services sectors. Taylor's subsequent posts included senior financial and corporate roles at Derlan Industries, a TSX listed aerospace company; President and COO of Spellcaster Telecommunications, an early-stage private software company; and Vice President of Mergers and Acquisitions with Ernst & Young's corporate finance practice.

"For a CFO, CryptoLogic is an excellent opportunity - that rare combination of blue-chip financials and vast growth potential," Taylor said. "I'm excited to join the industry pioneer and a global leader - and help build on CryptoLogic's market strength in the fast-growing Internet casino and Internet poker markets."

On behalf of the Board of Directors and CryptoLogic, the company recognizes the tremendous contribution and accomplishments that Jenifer Cua has made as CryptoLogic's interim CFO. In fulfilling this important position, she was instrumental in helping CryptoLogic continue its record of profitable growth and financial strength. In her new role as Vice President, Finance and Treasurer, Cua will be responsible for corporate and regulatory compliance, financing, mergers and acquisitions, treasury management and spearheading the company's Sarbanes-Oxley compliance - key and strategic areas as CryptoLogic capitalizes on its strong financial position to advance its market leadership in the rapidly-expanding and dynamically-changing global Internet gaming industry.




[b]CRYPTOLOGIC ERNENNT NEUEN CFO[/B ]
Stephen holt der Cryptologic Führungmannschaft August 9, 2005 über 20 Jahre ältere finanzielle Erfahrung (Toronto, AN) - CryptoLogic Inc., ein führender Software-Entwickler für den globalen Internet-Spielmarkt, heute verkündet der Verabredung des Schneiders Stephen als Finanzleiter der Firma. Schneider hat mehr als zwei Dekaden der Erfahrung in der finanzieller und Unternehmensführung, in den allgemeinen Märkten und in den Fusionen und im Erwerb. Er holt eine Fülle der Sachkenntnis, die ein Wert ist, da Cryptologic, fortsetzt sein aufregendes Wachstum im globalen Internet-Spielmarkt.

"wir werden erfreut, um Stephen als die rechte Person für die wichtige Rolle von CFO zu begrüßen, um zum kryptologischen anhaltenden Wachstum beizutragen und Erfolg,", sagte Lewis Rose, kryptologischer Präsident und CEO. "während die Internet-Spielindustrie komplizierter wird, wird die Rolle eines CFO schwieriger. Nzen nachgewiesene finanzieller und der Führung des Schneiders Stephen Fähigkeiten des Geschäfts, die unserer hervorragenden Mannschaft - und geben uns ein CFO, das helfen kann, unsere anhaltende Expansion in die aufregenden Jahre zu führen, um zu kommen.", In den letzten 20 Jahren hat Schneider Geschäfte, finanzierte Großabschlüsse gehandhabt, Fusionen und Erwerb spearheaded, und geholfene Firmen gehen Öffentlichkeit und entsprechen den Anforderungen der Kapitalmärkte. Schneider ist ein Wirtschaftsprüfer, nachdem erqualifiziert im oberen Prozent in Kanada erqualifiziert hatte.

Er verbrachte die ersten 11 Jahre seiner Karriere an der "grosse 4" Wirtschaftsprüfungsfirma von PricewaterhouseCoopers (früher Faßbinder u. Lybrand) multinationale Klienten in der Herstellung, der Bergbau und finanziellen die Dienstleistungssektoren revidierend. Folgende Pfosten des Schneiders schlossen älteres finanzielles mit ein und korporative Rollen an den Industrien Derlan, ein TSX verzeichneten Luftfahrtfirma; Präsident und COO der Nachrichtentechniken Spellcaster, eine private Software-Firma des Frühstadiums; und Vizepräsident von Fusionen und von Erwerb mit Ernst u. der Jugend Unternehmensfinanzierungspraxis. "für ein CFO, ist eine ausgezeichnete Gelegenheit kryptologisch - die seltene Kombination der erstrangigen Finanzverhältnisse und des beträchtlichen Wachstumpotentials," der Schneider gesagt. "ich werde aufgeregt, um den Industriepionier und einen globalen Führer zu verbinden - und zu helfen, auf kryptologischer Marktstärke in den schnell wachsenden Internet-casino- und Internet-Pokermärkten zu errichten.", Im Namen der Direktion und Cryptologic, erkennt die Firma den enormen Beitrag und die Vollendungen, die Jenifer Cua als Cryptologic Zwischenzeit CFO gebildet hat.

Wenn sie diese wichtige Position erfüllte, war sie, beim Helfen kryptologisch fortsetzt seine Aufzeichnung des rentablen Wachstums und der finanziellen Stärke instrumentell. In ihrer neuen Rolle als Vizepräsidenten, Finanzierung und Schatzmeister, ist Cua für korporative und regelnde Befolgung, Finanzierung, Fusionen und Erwerb verantwortlich, Finanzdisposition und das Spearheading die Schlüssel- und strategischen Bereiche der Befolgung Sarbanes-Oxley der Firma -, da Cryptologic, gross schreibt auf seiner starken Finanzlage, um seine Marktführung in der schnell-Erweiterung und dynamically-changing globalen in der Internet-Spielindustrie vorzurücken.

[Boni]

02.09.2005

LEADING BRITISH EXECUTIVE JOINS CRYPTOLOGIC BOARD

Nigel Simon brings extensive senior European business expertise to CryptoLogic

September 2, 2005 (Toronto, ON) - CryptoLogic Inc., a leading software developer for the global Internet gaming market, announced today that Nigel Simon has been appointed as a Non-Executive Director of the Company's Board of Directors. Simon, a veteran British business executive, has more than 25 years of broad senior management and strategic experience in leading and managing international businesses. He brings particular expertise in strategy, marketing, regulatory issues, sales, banking, corporate governance and mergers and acquisitions. Simon's global expertise will be a significant asset as CryptoLogic continues its growth in the fast-growing UK and European Internet gaming markets.

"Nigel Simon is an experienced executive with particular strengths in strategy and marketing, which will be an excellent complement to CryptoLogic's Board and leadership team," said Lewis Rose, CryptoLogic's President and CEO. "Nigel's extensive background in international businesses - notably in the UK and Europe, CryptoLogic's core growth markets, and his familiarity with Asia - will add valuable insights as we continue to deliver some of the world's best Internet games to the world's best gaming brands."

Simon has led a multi-billion-dollar business in Continental Europe, as well as building Gallaher's substantial volume position in Russia, Kazakhstan and Asia. In doing so, he has demonstrated a track record for growing both market share and profits and has worked with leading investment banks, advertising agencies and management consulting firms around the globe. Simon held senior management roles for 20 years with Gallaher Group PLC, an approximately £4 billion FTSE 50 and NYSE-listed international tobacco company based in the UK, with sales in 68 countries and manufacturing locations in the UK, Austria, Kazakhstan, Poland, Romania, Russia, Ukraine and Sweden. Some of Simon's most notable achievements at Gallaher included growing the company's international profits by more than 600 per cent over a ten year period, and leading the €2.1 billion European acquisition and integration of an Austrian manufacturer.

Simon also holds extensive experience as a non-executive board member. He served for seven years as a Main Board Director of Gallaher and held positions as Chairman of Germany's largest vending retailer, and as a Board member for Germany's largest convenience store wholesaler.

"CryptoLogic has earned a reputation for innovation, trust and performance in the global online gaming industry," Simon said. "I'm pleased to join the Board of a company that has made these attributes the foundation of its business. I look forward to contributing my counsel to CryptoLogic as it continues its rapid growth in Europe."

In addition to his business interests, Simon also serves as a trustee for a major UK charity and as a mentor for the Prince's Trust - a charity founded by the Prince of Wales to help less-privileged young adults get their start in business.