Chartwell Technology Inc.

[Newsflash]

15.09.2003

C h a r t w e l l T e c h n o l o g y I n c .

PRESS RELEASE

CHARTWELL ANNOUNCES THIRD SUCCESSIVE QUARTER OF PROFITABILITY

Chartwell Technology Inc. TSX-VEN: CWH

Calgary, Canada, September 15, 2003, Chartwell Technology Inc. (TSX-VEN: CWH) a leading
provider of gaming software systems and entertainment content to the online and remote gaming
industry, announces financial results for the third quarter ended July 31, 2003.

Highlights of the quarter included:
• Revenue of $1.9M compared with $1.1M during the same period in fiscal 2002;
• Operating income of $416K or $0.03 per share and net income of $215K or $0.02 per share
compared with a net loss of ($14K) or ($0.00) per share during the same period in fiscal 2002;
• Software license fees of $1.7M compared to $625K during the same period in fiscal 2002;
• Cash flow from operations of $308K compared to $286K during the same period in fiscal year
2002;
• Working capital of $6.7M.

Revenue growth and continued profitability remain key characteristics of Chartwell’s financial
performance.

“We are pleased with the financial results that we have achieved in our third quarter” states Don
Gleason, CFO. “We continue to meet our financial objectives of revenue growth and increased earnings
while achieving our product and business development goals. Q3 is our third successive quarter of
profitability and with our strong financial position, growing customer base and expanding product
offering we are well positioned to deliver on our annual revenue and profitability targets.”

Revenue for the three months ended July 31, 2003 was $1,966,768, an increase of 76% compared to
$1,117,939 in the same period of 2002. For the nine months ended July 31, 2003 revenue was
$5,604,741, an increase of 134% compared to $2,391,092 for the corresponding period of the previous
year. The increase in revenues is directly attributable to the increase in license fee revenue resulting
from the expanding installed base of clients. License fee revenue for the third quarter of 2003 was
$1,693,190 compared to $625,513 for the same period of the previous year, representing an increase
of 171%. For the nine months ending July 31, 2003 license fee revenue totaled $4,453,238 compared
to $1,501,818, an increase of 197% compared to the previous year.

Total operating expenses for the three month period totaled $1,550,773 compared to $1,131,736 for the
same period of 2002. For the nine months ended July 31, 2003 total operating expenses were
$4,303,855 compared to $3,749,227. Software development and support costs were the sole
contributor to the increase in operating expenses as personnel were added in accordance with new
product development initiatives. For the three months and nine months ended July 31, 2003, general
and administrative expenses increased 31% and decreased 18% respectively compared to the same
period of 2002.

Due to a continued decline in the US dollar compared to its Canadian counterpart and the
corresponding revaluation of US monetary assets the Company realized foreign currency losses for the
three months and nine months ending July 31, 2003 of $201,043 and $585,458 respectively. There
were no comparative losses for the same period of 2002. Since the majority of expenses are incurred in
Canadian dollars and as a means of reducing exposure to the downward performance of the US
currency the Company converted a significant portion of US monetary assets into Canadian dollars.

Net income for the third quarter, after the currency translation expense, was $214,952 or $0.02 per
share compared with a loss ($13,797) for the corresponding period of the previous year. Net income for
the nine months ending July 31, 2003 was $715,428 or $0.05 per share compared to a loss of
($1,358,135) or ($0.10) per share for the same period in the previous year. Chartwell continues to
maintain a solid financial base from which to execute its growth strategy. At the end of July 31, 2003
Chartwell had $4,830,803 in cash, cash equivalents and short term investments, working capital of
$6,711,727 and remains debt free.

For the balance of the fiscal year, Chartwell will continue to grow its bottom line through a combination
of increased license fees, new client set-up fees and prudent and effective cost management.

[Casinonews]

22.10.2003

Chartwell Announces Release of Wireless Gaming Suite

Calgary, Canada, October 22, 2003, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming systems and entertainment content to the online gaming industry, is pleased to announce commercial release of V1.0 of its Wireless Gaming Suite for Java-enabled mobile phones.

The Chartwell Wireless Gaming Suite offers rich animated graphics that are customizable to a licensee’s brand and design preferences. The wireless suite, like other Chartwell Gaming Products, can be fully integrated with an operator’s existing gaming systems, banking and player databases. The initial five games comprising the wireless suite include, baccarat, multi-hand blackjack, casino war, slots and video poker. The Chartwell Wireless Gaming Suite uses the same secure and full-featured back office system provided with the industry leading Chartwell Gaming System and can be used in either Fun Play or Real Play modes.

“We are extremely pleased with our development progress and the results of our beta testing program over multiple networks and handset manufacturers,” states Darold H. Parken, Chartwell’s President and CEO. “We will soon be going live with our first wireless licensees who will be able to offer their existing player base a unique platform on which to play our industry leading gaming products. Our mobile development pipeline contains many new games and player features that will quickly extend our lead in this exciting new gaming market.”

Chartwell’s Wireless Gaming Suite capitalizes on the growing trend amongst mobile manufacturers to Java-enable new mobile phones. By the end of 2003 it is expected there will be over 70 million Java-enabled handsets in use, and over 200 million by 2006 according to the wireless research consultancy Wireless World Forum.

[Casinonews]

06.11.2003

Chartwell Deploys Gaming System With Opera Telecom in Europe

Calgary, Canada, November 6, 2003, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to the online and mobile gaming industry, is pleased to announce that it has added Opera Telecom to its growing list of European based clients. Under the terms of the agreement Chartwell will provide its complete suite of online games including its recently launched mobile suite of games.

Located in the United Kingdom Opera Telecom provides services to some of the world's leading portals, national broadcasters, national and regional publishers, international carriers, network operators and hundreds of independent telecommunications companies including British Telecom, and Orange.

Gary Corbett, Managing Director of Opera Telecom says, "The launch of our gambling and gaming brand, GamRock, provides us with a new dedicated platform to showcase and distribute the very latest gaming and gambling applications to consumers. Our partnership with Chartwell Technology supports our objective to source platforms from best-in-class providers with strong track records in the industry."

"Opera has rolled out their new online casino under the GamRock brand as the first segment in their multi-channel gaming strategy," states Darcy Krogh, Vice President of Business Development at Chartwell. "This will soon be followed by the first commercial implementation of Chartwell's mobile game suite for Java-enabled handsets."

"The ability to provide mobile gaming support for our licensees is a key part of Chartwell's multi-platform gaming strategy," adds Mr. Krogh. "This gives Chartwell the capability to capitalize on this exciting technology and provides our customers additional market access by attracting a new audience. Chartwell is also pursuing new gaming platforms such as interactive TV and networked gaming kiosks in order to maintain our technology lead in the gaming industry."

A recent report by UK management consultancy, Schema, indicates that gambling through digital channels such as mobile gambling and ITV are expected to comprise approximately 26% and 33% respectively of the total online gambling industry revenues.

Chartwell will be demonstrating its mobile gaming product at the European I-gaming Congress and Expo November 11 and 12 in Barcelona. Chartwell will also be exhibiting its new multi-player poker community and multi-player bingo system, as well as new casino games and powerful new back office features.


About Opera Telecom
Headquartered in Brindley Place, Birmingham, UK, and with a turnover for the last financial year of £45m with £3m profit, Opera Telecom is one of the fastest growing and profitable providers of SMS premium services worldwide. It also boasts a full range of telecom service facilities, which include International switching, IVR bureau, web development team, unified messaging platform, ISP and WAP infrastructure as well as a sophisticated billing system.

As part of its unique zero-cost-of-entry, revenue-share proposition, Opera Telecom is developing and managing innovative SMS marketing campaigns on behalf of its clients without them having to incur any set-up charges. Opera provides the infrastructure set-up and SMS campaign management, which allows companies to generate revenue quickly from their SMS marketing campaigns utilizing unbranded content such as competitions, quizzes, games, news and information services, presented as their own.

Opera Telecom also provides services direct to some of the world's leading portals, national broadcasters, national and regional publishers, international carriers, network operators and independent telecommunication companies. Customers include GMTV, BT, MSN, EMAP, Eircom and ITV.

[Casinonews]

02.02.2004

C h a r t w e l l T e c h n o l o g y I n c .

Pressebericht des Casinosoftwareentwicklers

CHARTWELL ANNOUNCES FISCAL YEAR 2003 FOURTH QUARTER AND YEAR END RESULTS

- Revenue growth of 97%, Net Income of $1.6M -

Calgary, Canada, February 2, 2004, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider
of gaming software systems and entertainment content to the online and mobile gaming industry, is
pleased to announce financial results for the year ended October 31, 2003.

Highlights of the year included:
• Revenue of $7.3M compared with $3.7M in 2002;
• Operating income of $1.9M and net income of $1.6M compared with a net loss of $(1.4M) in
2002;
• Earnings per share of $0.11 compared with a net loss per share of ($0.11) in 2002;
• Software license fees of $6.3M compared to $2.6M in 2002;
• Cash flow from operations of $1.4M compared to a negative cash flow of $(1.2M) in 2002;
• Working capital of $6.7M compared to $6.0M in 2002;
• Remained debt free.

Revenue growth and consistent profitability were the key characteristics of Chartwell’s 2003 financial
performance.

“We are pleased to report that we met our fiscal 2003 financial objectives on all fronts”, states Don
Gleason, CFO. “We concluded the year with significant revenue growth, achieved profitability in four
successive quarters and generated $0.11 in earnings per share. With a solid financial foundation,
an expanded product offering and a growing customer base we have a strong platform from which to
continue to expand our business and extend this momentum into fiscal 2004”.
Revenue

Revenue for the three months ended October 31, 2003 was $1,748,400, an increase of 29% compared
to $1,346,902 in the same period of 2002. For the twelve months ended October 31, 2003 revenue was
$7,353,141, an increase of 97% compared to $3,737,994 for the previous year. Growth continues to be
attributable to the quarter over quarter increase in license fees from the installed base of clients.
License fee revenue for the fourth quarter of 2003 was $1,847,097 compared to $1,144,948 for the
same period of the previous year, representing an increase of 61%. For the twelve months ending
October 31, 2003 license fee revenue totaled $6,300,335 compared to $2,646,766, an increase of
138% compared to the previous year.

Operating Expenses
Total operating expenses excluding foreign exchange gains or losses, for the three month period
totaled $1,163,248 compared to $1,420,049 for the same period of 2002. For the twelve months ended
October 31, 2003 total operating expenses were $5,467,103 compared to $5,255,071 for the previous
year. Software development and support costs, which represent the Company’s largest expenditure
area, increased 23% over the prior year as resources were added to meet product development and
customer support initiatives. These costs included the deferral of $530,248 of development costs
relating to the building of new products. For the three months and twelve months ended October 31,
2003, general and administrative expenses decreased 9% and 22% respectively compared to the same
periods of 2002.

Foreign Exchange
The continued decline of the US dollar compared to its Canadian counterpart and the corresponding
revaluation of US monetary assets resulted in foreign currency losses for the three months and twelve
months ending October 31, 2003 of $209,728 and $795,186, respectively. There were no comparative
losses for the same period of 2002.

Net Income
Net income for the fourth quarter was $895,424 compared with a loss of $(72,415) for the
corresponding period of the previous year. Net income for the twelve months ending October 31, 2003
was $1,610,852 or $0.11 per share compared to a loss of ($1,431,282) or ($0.11) per share for the
previous year. Net income in the fourth quarter was positively impacted by the recognition of $520,000
in future tax assets relating primarily to prior period losses. At October 31, 2003, $1,067,287 of
realizable future tax assets remain available to be applied against future income tax expense.
Chartwell continues to maintain a solid financial base from which to execute its growth strategy. At
October 31, 2003, Chartwell had $5,178,010 in cash, cash equivalents and short term investments,
working capital of $6,752,155 and remains debt free.

Stock Options
Mr. Steve Latham, a Director of the Company, has been granted an option to purchase 100,000
common shares. The options were granted for a five year term pursuant to the Company’s Stock
Option Plan.

[Casinonews]

03.03.2004

NEW CHIEF EXECUTIVE AT CHARTWELL GAMES CORP.


Calgary, Canada, March 3, 2004, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to the online and mobile gaming industry is pleased to announce the appointment of Mr. Lee Richardson as Chief Executive of Chartwell Games Corp., its wholly owned subsidiary. Mr. Richardson will oversee the European operations of Chartwell Games Corp. including sales, marketing, and business development. He will also be responsible for enhancing our corporate presence and expansion in this strategic market.

Mr. Richardson holds an MBA from the University of Strathclyde (Glasgow), is a Fellow of the UK Chartered Institute of Marketing, and a member of the UK Academy of Marketing. He brings to Chartwell over 20 years of senior-level experience in national and international business-to-business and consumer markets including betting, gaming, and leisure. Mr. Richardson's extensive industry experience includes his position as Chief Operating Officer of Coral Eurobet, Managing Director of Totalbet.com, Managing Director of Tote Direct and Marketing Director of the British Horseracing Board.

“We are extremely pleased to have someone with Lee's extensive industry background, solid reputation and broad skill set join the Chartwell team” stated Darold Parken, President and CEO of Chartwell Technology Inc. “As we focus on the rollout of our new products and platforms in the European market, Lee will be a tremendous asset in building Chartwell's presence and providing strong strategic guidance within this and other new market areas for our unique business model and technology.”

Mr. Richardson's achievements in delivering results in complex business and regulatory environments include: being the industry's first Marketing Director for the British Horseracing Board where he created an award-winning multi-million-pound sponsorship channel, and the launch of Sunday Racing with betting; the development of new products and channels for Coral Eurobet's on-line sports betting and gaming operations, achieving record market share, turnover, active customers, gross win and profits within 12 months; and management responsibility for Tote Direct, a joint venture between the Tote, Ladbrokes and Coral Eurobet, operating the largest network of on-line betting terminals-second in size only to the UK National Lottery.

Richardson said, “I am tremendously excited to be joining Chartwell at this important time in its growth and expansion. Europe is an increasingly vital part of the world marketplace for betting and gaming, and I intend to see that Chartwell, with its first-class people and products, achieves an even bigger share of this fast-developing market.”

Under the direction of Mr. Richardson, Chartwell Games will continue to expand its base of brand clients and leverage its unique position as a true technology partner in the deployment of new gaming products and platforms including multiplayer poker and bingo, mobile, kiosk and Interactive TV (ITV).

Stock Options

Mr. Richardson has been granted an option to purchase 200,000 common shares of Chartwell Technology. The options were granted for a five-year term pursuant to the Company's Stock Option Plan.

Chartwell has also granted an option to purchase 50,000 common shares of Chartwell Technology to Mr. Dave Bajwa, a consultant to the Company performing investor relations activities. The options were granted for a five-year term pursuant to the Company's Stock Option Plan.

[Newsflash]

25.03.2004

NEW CHIEF EXECUTIVE AT CHARTWELL GAMES CORP.


Chartwell Technology Inc. TSX-VEN: CWH

Calgary, Canada, March 25, 2004, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to the online and mobile gaming industry is pleased to announce that it has appointed Mr. Peter H. Kinash as an independent member to the Company's Board of Directors. The Company also announces the resignation of Mr. Steven W. Latham who served on the Board since 1998.

Mr. Kinash, a Chartered Accountant, joins the Board with more than fifteen years of financial and related experience in the technology sector. Since 2002, Mr. Kinash has been providing financial leadership and advice to emerging and established technology companies. Prior to this, Mr. Kinash was CFO with Wi-LAN Inc. and Partner with KPMG LLP where he led their Calgary technology practice from 1990 to 1999.

“ Peter's extensive financial and technology background will be a tremendous addition to the Board of Chartwell and we are very excited to begin working with him”, states Darold Parken, President and CEO of Chartwell. “Peter's appointment, as an additional independent director, fulfills Chartwell's objective of establishing its' Board with a majority of independents. I would also like to thank Steve Latham for his long service to the Board, having stepped down to permit Peter's appointment. Steve will continue to be a valuable member of the Chartwell team.”

Kinash said. “I am very pleased to be joining the Chartwell team. The electronic entertainment space will continue to produce significant revenue potential for new products and delivery methods and lead technological change. Chartwell's position in this growing international market combines very nicely with my career history and I look forward to contributing to the development and growth of the company.”

Stock Options

Mr. Kinash has been granted an option to purchase 50,000 common shares of Chartwell Technology. The options were granted for a five-year term pursuant to the Company's Stock Option Plan .

[Newsflash]

30.03.2004

CHARTWELL ANNOUNCES CONTINUED PROFITABILITY AND REVENUE GROWTH

- Revenue growth of 38%, Net Income of $0.04 per share -


Calgary, Canada, March 30, 2004, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to the online and remote gaming industry, announces financial results for the first quarter ended January 31, 2004.

Highlights of the quarter included:

" Revenue of $2.3M compared with $1.7M during the same period in fiscal 2003;
" Operating income of $604K or $0.04 per share and net income of $559K or $0.04 per share compared with operating and net income $348K or $0.03 per share during the same period in fiscal 2003;
" Software license fees of $1.9M compared to $1.2M during the same period in fiscal 2003;
" Cash flow from operations of $821K compared to ($35K) during the same period in fiscal year 2003;
" Working capital of $7.4M.

"We have consistently provided earnings over the last five quarters and our continued growth in sustainable recurring license fees gives us the means to accelerate our growth during fiscal 2004", says Don Gleason, Chief Financial Officer. "We are continuing to expand our portfolio of games and through new delivery channels like mobile we expect to broaden our customer base and drive incremental revenue for the remainder of the year."

Revenue
Revenue for the three months ended January 31, 2004 was $2,340,345, an increase of 38% compared to $1,691,476 in the same period of 2003. Software license fee revenue for the first quarter of 2004 increased by 64% to $1,939,199 compared to $1,183,308 for the same period of the previous year. License fee revenue continues to show quarter over quarter growth and accounted for 83% of the Company's revenue compared to 70% in the first quarter of 2003.

Operating Expenses
Total operating expenses, excluding the positive effect of foreign exchange gains, for the three months ended January 31, 2004, increased by 32% to $1,777,878 compared to $1,343,863 for the same period of 2003. Software development and customer support costs, which account for 55% of operating costs, increased by 12% to $972,240 compared to $871,853 for the same period of 2003. General and administrative expenses, which include all costs relating to sales, marketing, business development and corporate support personnel, totaled $771,705 compared to $423,201 for the same period of 2003. The overall increase in expenses is primarily due to salary and benefit costs resulting from the addition of development, support and marketing personnel over the course of the last year.

Foreign Exchange
For the three months ended January 31, 2004, the Company reported a foreign exchange gain of $41,430. There was no comparative gain or loss in the first quarter of 2003. Although revenue is received in U.S. dollars the Company carries a minimum amount of U.S currency thereby mitigating the impact on earnings of a continued decline in the U.S. dollar.


Net Income
Net income for the first quarter of 2004 increased by 61% to $559K or $0.04 per share compared with $348K or $0.03 per share for the corresponding period of the previous year. The increase was attributable to the larger growth in revenue than in expenses.

Liquidity and Capital Resources
At January 31, 2004, Chartwell had $5,968,249 in cash, cash equivalents and short term investments, working capital of $7,337,586 and remains debt free. Cash flow from operations was $820,786 compared to ($34,919) for the comparative period in 2003. Operating cash flow was positive due to increased cash generated from earnings, a reduction in accounts receivable due to increased collections and other working capital items.

For the three months ended January 31, 2004, the Company generated proceeds of $115,360 from the exercise of stock options. There were no other financing activities. Cash used in investing activities was $1,715,748 compared to proceeds of $676,751 in the first quarter of 2003. This was due to the purchase of short term investments and capital assets in the amounts of $1,530,313 and $185,435 respectively.

[Casinonews]

06.04.2004

CHARTWELL GAMES EXPANDS IN EUROPE

Calgary, Canada, April 6, 2004, Chartwell Technology Inc. (TSX-VEN: CWH) a leading provider of gaming software systems and entertainment content to the online and remote gaming industry is pleased to announce the expansion of its subsidiary Chartwell Games Corp with the opening of its first European office at Stockley Park, Heathrow, London and the appointment of Aideen Shortt as Commercial Director.

Ms. Shortt has extensive industry experience, which includes previous positions at Flutter.com, Coral Eurobet and most recently as Marketing Director at Skybet. She brings to Chartwell Games an in-depth understanding of the marketplace from the client's perspective across traditional and new platforms. Ms. Shortt joins recently appointed Chief Executive Lee Richardson and Director of Marketing Fiona Stuart . Ms. Stuart has been with Chartwell Games since November 2003, and previously held positions with Victor Chandler International where she was a key member of the online gaming division.

Commenting on the new team Darold Parken, President and CEO of Chartwell Technology said ‘I am extremely pleased that Aideen has joined what is one of the most experienced and expert teams of gaming professionals in the industry. I believe that we have the best possible group of people to realize our full potential in the European market. The talent and experience of these people will provide significant added value to Chartwell's offering.'

Ms. Shortt said, ‘I am very excited to be joining Chartwell Games at this crucial time in its development and to being part of such a talented team. Having worked with Chartwell in a client capacity I know that they deliver the best solutions and systems and truly do work as a technology partner. I am looking forward to introducing them to additional contacts and adding more great names to our already prestigious client list.'

From its new office in Stockley Park , Chartwell Games will continue to expand its base of premium brand clients and leverage its unique position as a true technology partner in the deployment of new gaming products and platforms including multiplayer poker and bingo, mobile, kiosk and interactive TV (iTV).

The new team have between them 20 years experience in betting and gaming and have worked with some of the biggest names in the industry. With both operational and marketing experience within the online arena they are uniquely qualified to assist clients in all areas of the betting and gaming business.

[Cabo]

30.04.2004

CHARTWELL GRADUATES TO THE TSX

Calgary, Canada, April 30, 2004, Chartwell Technology Inc. (TSX: CWH) a leading provider of gaming software systems and entertainment content to the online and mobile gaming industry is pleased to announce effective May 3 rd, 2004 the company's shares will be delisted from the TSX Venture Exchange and move to the Toronto Stock Exchange. The TSX Venture Exchange has been advised that the company's securities will be listed and commence trading on Toronto Stock Exchange at the opening on Monday, May 3 rd , 2004, under the symbol CWH

"The TSX listing represents a major milestone in our development, states Darold H. Parken, President and CEO of Chartwell Technology Inc. By upgrading our listing to the largest Canadian stock exchange, Chartwell will enjoy increased visibility and greater recognition in the global financial markets, which will be a significant advantage in our efforts to enhance shareholder value. I would like to take this opportunity to thank all of our long-standing shareholders for their continued support and confidence in the Company.”

[Cabo]

17.06.2004

CHARTWELL ANNOUNCES RECORD REVENUE AND CONTINUED PROFITABILITY

- Revenue growth of 40%, Net Income of $0.05 per share -

Calgary, Canada, June 17, 2004, Chartwell Technology Inc. (TSX:CWH) a leading provider of gaming software systems and entertainment content to the online and remote gaming industry, announces unaudited financial results for the second quarter ended April 30, 2004.

Highlights of the quarter included:

Revenue of $2,725K compared with $1,946K during the same period in fiscal 2003;

Net earnings of $792K or $0.05 per diluted share compared with net earnings of $153K or $0.01 per diluted share during the same period in fiscal 2003;
Working capital of $8,369K compared to $6,587K during the same period in fiscal 2003;
The opening of our London based European sales, marketing and business development office;
Commenced trading on the Toronto Stock Exchange on May 3, 2004 .
“This has been a strong financial quarter for Chartwell, consistent with our financial objectives for 2004”, states Don Gleason, Chief Financial Officer. “We achieved record revenues, posted our sixth consecutive quarter of profitability and increased our working capital and cash position while continuing to invest in key areas of our business. The establishment of our European operation in London , our rollout of new products and platforms and our strong balance sheet will enable us to carry this financial momentum through the remainder of fiscal 2004”.

Three Months Ended April 30, 2004

Revenue and earnings momentum continued into the second quarter ended April 30, 2004 . Compared to the same period of 2003, revenue increased 40%, operating income increased 31%, earnings increased 418% and earnings per share diluted increased 400%.

Total revenue increased to $2,725K from $1,946K in the comparative quarter in 2003. Recurring license fee revenue is continuing to show quarter over quarter growth with second quarter fees approximately 39% higher than the previous quarter. The large increase in revenue is due to continued growth within our traditional customer base and the revenue contribution of new licensees.

Income from operations increased to $706K from $537K in the comparative quarter of 2003.

Net earnings increased to $792K from $153K in the comparative quarter of 2003. Net earnings are positively influenced by the recognition of future tax assets which are used to minimize current tax expense. Basic and diluted earnings per share increased to $0.06 and $0.05 respectively from $0.01 in the comparative quarter of 2003.



Six Months Ended April 30, 2004

Compared to the same six month period of 2003, revenue increased 39%, operating income increased 43%, earnings increased 170% and earnings per share diluted increased 125%.

Total revenue increased to $5,065K from $3,638K in the comparative six month period in 2003. License fees increased by 68% to $4,639K from $2,760K in the comparative six month period of 2003. Recurring license fees have consistently shown quarter over quarter growth over the last 12 months.

Income from operations increased to $1,268K from $885K in the comparative six month period of 2003. The increase is due to a larger growth in revenue than in expenses.

Net earnings increased to $1,351K from $500K in the comparative six month period of 2003. Basic and diluted earnings per share increased to $0.10 and $0.09 respectively from $0.04 in the comparative six month period of 2003.



Balance Sheet

The Company continued to strengthen its balance sheet. At April 30, 2004 , Chartwell had no debt, total cash (including short term investments) of $6,452K and $8,369K in working capital.

Operating cash flow for the second quarter of 2004 was $198K and was positive due to increased cash generated from earnings, which was partially offset by an increase in accounts receivable. Cash provided by financing was $510K and cash used in investing was $322K.



Business Initiatives

During the second quarter of 2004 the Company delivered on two significant business initiatives.


1. Established a European Corporate Presence.

In keeping with the Company's European market focus, Chartwell opened an office in London , U.K. in March. The London office will enhance the Company's sales, marketing and business development initiatives and will be responsible for increasing Chartwell's corporate presence and expansion into the strategic European market.



2. TSX Listing

On May 3, 2004 Chartwell commenced trading its shares on the Toronto Stock Exchange and delisted its shares from the TSX Venture Exchange. The TSX listing will provide the Company with increased visibility and greater market recognition. Investor and customer interest in Chartwell continues to grow.