Cryptologic WagerLogic Casinonews

[Casinonews]

10.Januar 2006
UKBETTING RENEWS AGREEMENT TO USE CRYPTOLOGIC-DEVELOPED INTERNET POKER SOFTWARE

Europe's largest online sports content network extends exclusive poker contract to 2009; casino contract to 2008

January 10, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today the renewal of its relationship with ukbetting plc - Europe's largest online sports content network - through the extension of the agreement with CryptoLogic's wholly-owned subsidiary, WagerLogic Limited. ukbetting will continue to use WagerLogic's Internet poker solution exclusively through to 2009 for its betting brands, www.ukbetting.com and www.totalbet.com. The contract also extends ukbetting's use of WagerLogic's casino software until 2008.

"CryptoLogic is growing its business with the world's blue-chip gaming brands - and ukbetting is one of the major European names on that list," said Lewis Rose, CryptoLogic's President and CEO. "CryptoLogic is proud that ukbetting has reaffirmed its confidence in our award-winning Internet gaming software, particularly benefiting from the liquidity of our poker network. By leveraging CryptoLogic's proven poker offering with ukbetting's extensive user base, we continue a winning combination to generate the highest returns."

A customer since 2003, ukbetting introduced WagerLogic's state-of-the-art poker and casino software to its highly popular betting brands, www.ukbetting.com and www.totalbet.com, and have experienced strong results, especially in the high-growth poker segment. Poker has accounted for the majority of ukbetting's revenue generated from CryptoLogic-developed software, which has been driven by the strong crossover from ukbetting's sports content users to poker. The contract renewal provides for WagerLogic's poker product to be integrated into ukbetting's single E-Cash wallet, to enhance the cross-marketing opportunities between ukbetting's 8.75 million monthly UK and European sports fans to its Internet poker services.

"I'm delighted that WagerLogic and ukbetting will continue this mutually rewarding relationship, which has contributed to a more than 100% year-over-year increase in our poker and casino revenue," said Eric Semel, CEO of ukbetting plc. "It is an extremely important move for ukbetting to have our poker product integrated into our back end systems, thereby allowing our customers to be able to use a single wallet solution rather than to have to register a new account to play poker."

"The contract extension with ukbetting reinforces how major gaming operators continue to benefit from WagerLogic's poker liquidity and our decade of industry experience to deliver sophisticated innovations that enhance player loyalty and drive incremental revenue," added A.J. Slivinski, WagerLogic's Managing Director.

About CryptoLogic® (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Inc. is a world-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 Ltd., a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to customers 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).

About ukbetting (www.ukbetting.com)
ukbetting plc (LSE symbol: UKB) operates the UK's leading sports content and betting sites. This portfolio of sites includes www.sportinglife.com, the original multi-sports web site that provides the fastest news, scores, results and reviews for all major sports including football, racing, golf and rugby and cricket and much more. Its sister sites, www.sportal.com and the www.bettingzone.co.uk, deliver leading edge interactive sports content and independent betting news, preview, analysis, selections and stats respectively.

In addition to its sports content division the group has two primary betting sites, www.ukbetting.com and www.totalbet.com that offer a wide range of fixed odds markets for all the major sports as well as play poker and casino games. Customers of www.totalbet.com are also able to place bets directly into the tote pools giving them access to popular bets such as the placepot, jackpots and scoop6.

[Casinonews]

31.Januar 2006
CRYPTOLOGIC SUBSIDIARY WINS TOP HONOURS AT 2006 UK GAMBLING AWARDS

WagerLogic named iGaming Software Provider of the Year at industry's top awards event

CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, was recognized as the iGaming Software Provider of the Year at the 2006 UK Gambling Awards - the UK's premier industry awards event. WagerLogic was honoured for its innovative Internet casino and poker software. The awards were held at the historic Banqueting House at Whitehall Palace, London.

"This prestigious award - along with a growing number of other industry honours - makes it clear that CryptoLogic is developing games of choice that players love to play," said Lewis Rose, CryptoLogic's President and CEO. "As both industry pioneer and an industry leader, CryptoLogic works hard to stay close to the heart of the online player - in both casino and poker - and this type of industry acclaim shows we're on the right track in producing innovative, industry-leading games and software."

In more than ten years in business, CryptoLogic has consistently developed groundbreaking products and entertainment concepts through its Internet casino and poker suites. The company introduced more than 20 new casino games in 2005 alone; these included Bejeweled, the popular gem-matching game, and six new multi-jackpot games featuring world-famous Marvel Super Heroes such as The Hulk, Daredevil, X-Men, Blade and The Punisher.

With one of the most extensive poker offerings on the Internet today, WagerLogic licensees' central poker room has consistently ranked among the top five poker rooms on the Internet, and now attracts more than 9,000 simultaneous online players.

"In our industry, it's a great tribute to be named the iGaming Software Provider of the Year," said A.J. Slivinski, WagerLogic's Managing Director. "For WagerLogic, this validates our commitment to providing state-of-the-art casino and poker software that enhances the loyalty of our customers' players across the UK and all over the world."

Presented by Dennis Publishing, the UK Gambling Awards honours the best in the industry. Founded in 1974, Dennis Publishing is one of the world's leading independently owned media companies. The company publishes 19 magazines in the UK, including Maxim, InsideEdge, PokerPlayer, TOTAL Gambler, PC Pro and The Week, and four titles in the US - Maxim, Stuff, Blender and The Week.




15.Februar 2006
CRYPTOLOGIC DECLARES QUARTERLY DIVIDEND

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$0.07 per common share. The dividend will be paid on March 15, 2006 to shareholders of record as at March 8, 2006. The ex-dividend date will be March 6, 2006.








February 16, 2006

CRYPTOLOGIC ENDS 2005 WITH RECORD HIGHS IN REVENUE & EARNINGS

Fourth quarter: revenue up 40%, earnings up 54%, poker fees up 92%, casino fees up 20%
Strategy focused on key customers, products & markets delivers high returns

February 16, 2006 (Toronto, ON) – CryptoLogic Inc., a leading software developer to the global Internet
gaming market, announced today its financial results for the fourth quarter and year ended December 31,
2005. Record revenue and earnings, and healthy operating cash flow reflected the company’s disciplined
strategy and strong growth in the major casino and poker segments of the global online gaming market.

“For CryptoLogic, 2005 marked a decade of innovation and consistent performance,” said Lewis Rose,
CryptoLogic’s President and CEO. “It was a milestone year of delivering the world’s most innovative
games to some of the world’s most trusted gaming and entertainment brands. The results speak for
themselves – we achieved all-time highs in revenue and earnings. CryptoLogic is among the industry
growth leaders in both the Internet casino and Internet poker markets.”

Financial Highlights
(in millions of US dollars, except per share data)
Three months ended
December 31,
Years ended
December 31,
2005 2004 2005 2004
Revenue $25.1 $17.9 $86.3 $63.7
Earnings $5.8 $3.8 $20.5 $13.7
Earnings per diluted share $0.43 $0.27 $1.46 $1.01

Fiscal 2005 fourth quarter highlights included:
· Record fourth quarter earnings grew to $0.43 per diluted share ($5.8 million), ahead of analysts’
average forecast of $0.40, and 59% above the 2004 fourth quarter of $0.27 ($3.8 million). This was on
record revenue of $25.1 million;
· Record 2005 full year earnings grew to $1.46 per diluted share ($20.5 million), up 45% on a 35%
increase in revenue to a record $86.3 million;
· Online poker fees derived from the company’s WagerLogic licensing subsidiary rose 92% to $7.9
million over Q4 2004, up 13% sequentially over Q3 2005. Poker software fees accounted for 32% of
Q4 2005 revenue, and grew 126% to $27.0 million in fiscal 2005 over a year ago;
· The launch of a new Greek-language Internet poker site for William Hill – the UK’s largest sports
bookmaker – marked the first multi-language version of CryptoLogic-developed poker software;
· Internet casino revenue rose 20% to $15.5 million compared with Q4 2004, up 23% sequentially over
Q3 2005. Fees from casino software represented 62% of total Q4 2005 revenue, and rose 11% to $53.0
million in fiscal 2005 over a year ago.

· CryptoLogic received Gambling Online Magazine’s “Top Casino Software” Award; and WagerLogic
was named “iGaming Software Provider of the Year” at the 2006 UK Gambling Awards;
· Geographic diversification remained on track with licensees’ revenue from international markets
exceeding 65% of total revenue, up from over 60% in 2004;
· Declared the next quarterly dividend of US$0.07 per share, payable on March 15, 2006;
· In 2005, CryptoLogic repurchased and cancelled 509,700 shares at an approximate average price of
US$18.05 per share ($9.2 million) under its Normal Course Issuer Bids; and
· Subsequent to year-end, the company renewed and extended its agreement with an existing customer,
ukbetting plc – Europe’s largest online sports content network – exclusively for online poker to 2009
and for online casino until 2008.
Record Financial Performance (All figures are expressed in US dollars)

CryptoLogic delivered both record revenue and earnings for the fourth quarter ended December 31, 2005.
The first and fourth quarters are typically the strongest periods for Internet gaming as players tend to spend more time indoors during the winter and fall seasons. Revenue rose 40% to $25.1 million (Q4 2004: $17.9 million). EBITDA(1) for the quarter grew to $5.0 million (Q4 2004: $4.7 million). EBITDA(1) margin for the quarter was 20% as a percentage of revenue, which takes into account certain unusual costs as
described below (Q4 2004: 26%). Earnings for Q4 2005 rose 54% to $5.8 million or $0.43 per diluted
share (Q4 2004: $3.8 million or $0.27 diluted share).

For the year ended December 31, 2005, CryptoLogic’s revenue increased by 35% to $86.3 million (2004:
$63.7 million). EBITDA(1) for fiscal 2005 rose by 29% to $22.3 million (2004: $17.3 million). This
translated into EBITDA(1) margin for the year of 26% (2004: 27%), which also takes into account the
unusual costs as described below. Earnings for the full year improved by 50% to $20.5 million or $1.46
per diluted share (2004: $13.7 million or $1.01 per diluted share).

Fourth quarter revenue reflected strong organic growth from existing customers in both Internet casino and
poker. The immediate popularity of the company’s new Bejeweled and Marvel-themed casino games,
coupled with increasing player volumes and growth in popularity of the company’s Internet poker licensees
have contributed to record top line performance in these core game segments.
Investment Strategy and Direction

CryptoLogic’s $12.5 million investment program to enhance its software and systems, launched in Q3
2004, is now complete. Over the past six quarters, $7.8 million were operating costs and $4.7 million were
capital expenditures (comprising $3.2 million for the purchase of capital assets and $1.5 million in
capitalized software development related to the investment program).

As a result, CryptoLogic remains at the forefront of bringing the latest product innovation and
entertainment concepts to its Internet gaming software, as evidenced by significant revenue growth and
industry awards. During Q4 2005, the company decided to outsource certain projects to enhance ongoing
operating efficiencies. This approach combines the strengths of in-house technical expertise with industryleading external resources to continue to introduce new games to market faster, and led to the consolidation and streamlining of certain development groups to optimize efficiency and use of resources.

These decisions resulted in $3.3 million of costs, which included staff reduction expenses, and were largely offset by two unrelated items.


The following unusual factors contributed to the company’s Q4 2005 financial results, and collectively had
a negative net effect on earnings of approximately $0.8 million:
· $0.8 million in chargeback recovery given the company’s continued improvement in fraud control
experience, which added to revenue;
· $3.3 million of costs associated with the expensing of capitalized software development and
severances; and
· $1.7 million of tax recovery primarily resulting from tax benefits derived from previously unrecognized
tax losses.

Going forward, CryptoLogic’s investment in its business will remain proportionate to the company’s
growth, revenue generation and market potential. Capital investments are expected to be in the range of
10% to 15% as a percentage of revenue to enhance the company’s position in a competitive and growing
marketplace. These investments will be aimed at normal course capital replacement; initiatives to
strengthen its game platform, infrastructure and business intelligence and support tools; and to meet
evolving regulatory requirements. CryptoLogic’s commitment to investing in innovative gaming software
and solutions continues to drive increasing near and long term returns.

Balance Sheet Strength
CryptoLogic continued to add to its financial strength. At December 31, 2005, the company had no debt,
and total cash grew to $99.1 million or a cash value of $7.05 per diluted share (comprising cash and cash
equivalents, short term investments, and including security deposits of $1.5 million). Working capital grew
to $73.6 million or $5.23 per diluted share.

Operating cash flow for the fourth quarter of 2005 grew to $11.3 million (Q4 2004: $9.0 million). For
fiscal 2005, operating cash flow rose significantly to $34.7 million (2004: $18.9 million). The year-overyear
increase related primarily to higher earnings and a significant reduction in security deposit
requirements with payment processors.

Quarterly Dividend
On February 14, 2006, the Board declared the company’s quarterly dividend of US$0.07 per share, payable
on March 15, 2006 to shareholders of record as at March 8, 2006.

Geographic Diversification in Key Markets
CryptoLogic continues to benefit from a geographically diversified business in the key markets for Internet
gaming. In 2005, more than 65% of licensees’ revenue was derived from international players, up from
over 60% a year ago. The UK and Continental Europe remain the largest markets, together accounting for
more than 60% of licensees’ overall revenue.

CryptoLogic continues to grow its business with the world’s major international gaming brands. In January
2006, announced just after the end of the fourth quarter, ukbetting plc – Europe’s largest online sports
content network, with 8.75 million UK and European users each month – renewed and extended its multiyear contract with WagerLogic. ukbetting will continue to use WagerLogic’s Internet poker solution
exclusively through to 2009, and WagerLogic’s casino software until 2008 for both its premier betting
brands, www.ukbetting.com and www.totalbet.com.

Product Innovation in Key Game Segments
CryptoLogic’s focus on delivering an ever-expanding and innovative Internet game portfolio continues to
drive strong performance in both its casino and poker software businesses.
Internet casino remains the largest revenue contributor for CryptoLogic, accounting for 62% of Q4 2005
revenue. Online casino fees grew 20% to $15.5 million (Q4 2004: $12.9 million), up 23% over Q3 2005.
For fiscal 2005, casino revenue rose 11% to $53.0 million (2004: $47.9 million).

CryptoLogic’s product strategy of affiliating with the world’s premier consumer brands is delivering
excellent returns. The company’s recently released online slot version of Bejeweled, the very popular,
gem-matching game, and games featuring the legendary Marvel Super Heroes contributed to more than
10% of licensees’ casino revenue for December 2005.

During the quarter, CryptoLogic introduced its first European language poker software offering – a new
Greek-language poker site for William Hill. This latest offering leverages CryptoLogic’s decade of
experience in delivering multi-language, multi-currency software that enable leading gaming operators to
localize their online offerings for worldwide appeal.

The central online poker room shared by the company’s licensees continued to experience significant
growth and attract increasing player traffic, driven by ongoing enhancements to the wide range of games,
stakes and tournament opportunities offered through CryptoLogic-developed poker software. As a result,
fees earned from Internet poker rose 92% to $7.9 million (Q4 2004: $4.1 million), up 13% sequentially
over Q3 2005. Online poker fees accounted for 32% of total Q4 2005 revenue, rising 126% to $27.0
million in fiscal 2005 (2004: $12.0 million).

Outlook
By executing a disciplined strategy that targets key customers, product segments and markets, CryptoLogic
has achieved record revenue and earnings, and consistent cash generation – even in the fast-evolving and
increasingly competitive Internet gaming industry. The company expects its positive momentum to
continue into 2006. Revenue in the first quarter is forecasted to range from $25.1-$25.5 million, with
earnings of $6.7-$6.9 million or $0.49-$0.50 per diluted share.

CryptoLogic’s growth plan remains principally focused on driving significant organic growth from its
existing customers, while targeting selected new customers that meet the clear criteria of brand strength,
established player bases and marketing resources and commitment. Although no new customers were
added in 2005, the company renewed and strengthened existing customer relationships. CryptoLogic will
continue its strategy of innovation by developing and delivering market-responsive games and concepts –
in both casino and poker – to help customers attract players and retain their loyalty in today’s increasingly
demanding and sophisticated market.

2005 Fourth Quarter and Year End Analyst Call
A conference call is scheduled for 8:30 a.m. (EST) (1:30 p.m. GMT) on Thursday, February 16, 2006.
Interested parties should call either 416-695-6622, 1-877-888-3855 (North America) or international toll
free number at (Country Code) 800-4222-8835. Instant replay will be available until February 23, 2006 by
calling 416-695-5275 or 1-888-509-0081.

About CryptoLogic (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Inc. is a world 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 customers 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 ( N. American Media)
Nancy Chan-Palmateer, Director of Communications Daniel Tisch, ext. 223/ dtisch@argylerowland.com
Stephen Taylor, Chief Financial Officer Karen Passmore, ext. 228/ kpassmore@argylerowland.com
Publicis Consultants, +44 20 7462 7766 (UK Media)

Nick Bastin / Hannah Ashby
(1) Management believes that EBITDA (earnings before interest, taxes, depreciation 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.

CRYPTOLOGIC INC.
CONSOLIDATED BALANCE SHEETS
(In thousands of US dollars)
As at December 31,
2005 (unaudited)

As at December 31, 2004
(audited)
ASSETS

Current assets:
Cash and cash equivalents $94,420 $43,182
Security deposits 1,500 7,000
Short term investments 3,214 35,782
Accounts receivable and other 8,629 6,487
Prepaid expenses 4,615 1,754
112,378 94,205
User funds on deposit 25,953 18,908
Capital assets 14,214 9,227
Intangible assets 77 106
Goodwill 1,776 1,776
$154,398 $124,222

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued liabilities $37,495 $30,056
Income taxes payable 1,314 1,331
38,809 31,387

User funds held on deposit 25,953 18,908
Future income taxes 2,411 1,840
67,173 52,135
Shareholders’ equity:
Capital stock 25,171 20,380
Stock options 2,163 1,114
Retained earnings 59,891 50,593
87,225 72,087
$154,398 $124,222
CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF RETAINED EARNINGS
(In thousands of US dollars)
For the three months
ended December 31,
For the years
ended December 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (audited)
Retained earnings, beginning of period
$58,526
$47,463
$50,593
$38,758
Earnings 5,825 3,794 20,530 13,668
Excess of purchase price of treasury shares
over stated value
(3,526)
--
(8,248)
--
Dividends paid (934) (664) (2,984) (1,833)
Retained earnings, end of period $59,891 $50,593 $59,891 $50,593

CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands of US dollars, except per share information)
For the three months
ended December 31,
For the years
ended December 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (audited)
Revenue
$25,061
$17,949
$86,307
$63,714
Expenses
Operating costs 14,708 11,349 52,658 39,975
General and administrative 1,988 1,773 7,642 6,028
Software development costs 3,287 -- 3,287 --
Finance 104 88 417 374
Amortization 1,153 674 3,894 2,089
21,240 13,884 67,898 48,466
Earnings before undernoted 3,821 4,065 18,409 15,248
Interest income 1,149 426 3,627 1,293
Earnings before income taxes 4,970 4,491 22,036 16,541
Income taxes:
Current (1,172) 253 935 1,033
Future 317 444 571 1,840
(855) 697 1,506 2,873
Earnings $5,825 $3,794 $20,530 $13,668
Earnings per common share
Basic $0.44 $0.29 $1.51 $1.05
Diluted $0.43 $0.27 $1.46 $1.01
Weighted average number of shares (‘000s)
Basic 13,363 13,185 13,588 12,971
Diluted 13,665 13,871 14,067 13,586

CRYPTOLOGIC INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands of US dollars)
For the three months
ended December 31,
For the years
ended December 31,
2005 2004 2005 2004
(unaudited) (unaudited) (unaudited) (audited)
Cash provided by (used in):
Operating activities:
Earnings $5,825 $3,794 $20,530 $13,668
Adjustments to reconcile earnings to
cash provided by (used in) operating activities:
Amortization 1,153 674 3,894 2,089
Future income taxes 317 444 571 1,840
Stock options 522 337 1,807 1,200
Changes in operating assets and liabilities:
Security deposits 500 -- 5,500 (450)
Accounts receivable and other (865) 872 (2,142) (4,098)
Prepaid expenses 215 42 (2,861) (591)
Accounts payable and accrued liabilities 4,883 2,628 7,439 4,993
Income taxes payable (1,275) 181 (17) 268
11,275 8,972 34,721 18,919
Financing activities:
Issue of capital stock 132 2,343 4,986 8,506
Dividends paid (934) (664) (2,984) (1,833)
Repurchase of common shares (3,976) -- (9,201) --
(4,778) 1,679 (7,199) 6,673
Investing activities:
Purchase of capital assets 1,041 (1,749) (8,850) (7,296)
Purchase of intangible assets -- -- (2) (89)
Short term investments 9,749 9,840 32,568 (19,035)
10,790 8,091 23,716 (26,420)
Increase (decrease) in cash and cash equivalents 17,287 18,742 51,238 (828)
Cash and cash equivalents, beginning of period 77,133 24,440 43,182 44,010
Cash and cash equivalents, end of period $94,420 $43,182 $94,420 $43,182
Supplemental cash flow information:
Non cash portion of options exercised $33 $47 $758 $524

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
As at December 31, 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 (GAAP) using the same accounting policies as
were used for the audited consolidated financial statements for the year ended December 31, 2004. These interim
consolidated financial statements do not contain all annual disclosures required by GAAP and, as such, should be read
in conjunction with the audited consolidated financial statements including the notes thereto 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 in 2004 and
2005 was made using the Black-Scholes option pricing model using 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 cost of stock options of
$522 in Q4 2005 (Q4 2004: $337) and $1,807 in 2005 (2004: $1,200) are included in operating costs with a
corresponding addition to Stock Options in Shareholders’ Equity. The Stock Options account is reduced as options
are exercised with an entry to Share Capital totaling $33 in Q4 2005 (Q4 2004: $47) and $758 in 2005 (2004: $524).
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 net earnings and earnings per
share would have been changed to the following pro forma amounts:
Three months ended
December 31,
Years ended
December 31,
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 $5,825 $5,679 $3,794 $3,662 $20,530 $19,988 $13,668 $13,090
Earnings per share:
Basic $0.44 $0.42 $0.29 $0.28 $1.51 $1.47 $1.05 $1.01
Diluted $0.43 $0.42 $0.27 $0.26 $1.46 $1.42 $1.01 $0.96


2. Capital Stock
Authorized:
Unlimited common shares
Issued and Outstanding:
Common Shares Series F Warrants Total
In thousands Issued Stated Value Issued Stated Value Stated Value
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
Share repurchase (510) (953) -- -- (953)
Exercise of stock options 498 5,318 -- -- 5,318
Exercise of warrants 23 630 (23) (204) 426
Expiry of warrants -- 68 (7) (68) --
Balance, December 31, 2005 13,322 $25,171 -- $ -- $25,171
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. Under this plan, the company had repurchased and cancelled
270,500 common shares during the three months period ended September 30, 2005 for total cost, including transaction
cost of $5.2 million.
In September 2005, the Board of Directors approved the renewal of the share repurchase plan, under a Normal Course
Issuer Bid, to repurchase and cancel up to 1,340,000 of the Company’s outstanding common shares for the period
commencing September 28, 2005 and ending September 27, 2006. Under this plan, the Company had repurchased
and cancelled 239,200 common shares during the three months period ended December 31, 2005 for total cost,
including transaction costs of $4.0 million.
4. Comparative Figures
Certain of the prior year’s figures have been reclassified for consistency with the current presentation.

[Casinonews]

30.März 2006

CRYPTOLOGIC'S NEW POKER TOURNAMENT SOFTWARE DELIVERS HIGH-SPEED ACTION, ONLINE QUALIFYING FOR TOP POKER EVENTS WORLDWIDE

CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today the latest tournament enhancements to its Internet poker software released through its wholly-owned subsidiary, WagerLogic Limited. New features include high-speed Thunder Tournaments and an enhanced Super-Satellite Tournament Structure for more chances to qualify for the world's biggest and coveted land-based poker events.

"For CryptoLogic, it's about delivering innovative and distinctive gaming concepts that meet the heart of the online gamer," said Lewis Rose, CryptoLogic's President and CEO. "Players are demanding speed, the thrill of 'land-based' tournaments and rewards for their loyalty. CryptoLogic listened and delivered - first, we introduced Lightning speed games, now Thunder Tournaments and more - and the result is exciting poker tournament software that offers increased speed of play and increased chances to win entry into an amazing choice of events."

WagerLogic first gave players a taste of speed with its popular Lightning ring games. New Thunder Tournaments now offer this same high-speed poker action by reducing player decision time to 12 seconds and providing shorter blind levels - further challenging player skills in one of the fastest tournament structures available online.

WagerLogic extended the marketing appeal of tournaments with the introduction of its exclusive online Super-Satellite Tournament Structure, Land-Based Online Qualification Series (LOQ). LOQ enables its customers' players to qualify online, all-year-round for not just one, but their choice of 20 premier poker events around the globe. From the World Series of Poker to major land-based tournaments in the Caribbean and across Europe to WagerLogic licensees' own Caribbean Poker Classic , winners of a main online LOQ satellite tournament will be awarded the entry fee for the tournament of their choosing, as well as travel, accommodation and spending money. The excitement of last year's CPC is currently airing every Friday into April at 4:00 p.m. Eastern on Rogers Sportsnet in Canada.

The introduction of My Poker Points (MPP) tournament option also allows players to compete in online tournaments using poker points accumulated while playing, or use their points to pay for the fee portion of a tournament buy-in for selected tournaments.

"By understanding and anticipating the wants, needs and wishes of the online player, our software is offering something for every type of Internet poker player. Players can now speed up their ETA to possible victory by playing Thunder Tournaments, they can LOQ up their seat to 20 different land-based tournaments throughout the year, and they continuously get rewarded - especially with the introduction of MPPs," said Andy Goetsch, CryptoLogic's Vice President, Poker Software Development.

"Our newest poker enhancements continue to provide our customers with a differentiated offering through novel, exclusive tournament concepts, online reward features and a widening array of online and on-land tournament options that help drive players to their Internet poker sites," added A.J. Slivinski, WagerLogic's Managing Director.

WagerLogic's new poker software enhancements can be found at top Internet poker sites, including williamhillpoker.com, interpoker.com, littlewoodspoker.com, www.ukbettingpoker.co.uk, betfairpoker.com, theritzclublondon.com, sunpoker.com, pokerplex.com, classicpoker.com and totalbetpoker.co.uk.

[Casinonews]

05.Mai 2006

CRYPTOLOGIC EXTENDS TERMS WITH LARGEST CUSTOMER, ANNOUNCES CHANGE TO LICENSEE BASE

May 5, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today that it has extended its current commercial terms with its largest licensee and one of the world's first and largest online casinos. Overseas Internet Gaming Entertainment NV (OIGE), the owner and operator of the award-winning gaming sites, InterCasino (www.intercasino.com) and InterPoker (www.interpoker.com), has reaffirmed its exclusive agreement with CryptoLogic's wholly-owned licensing subsidiary, WagerLogic Limited, by securing the same royalty arrangements until at least January 1, 2012, and will continue to use WagerLogic's complete Internet gaming solution.

Following an internal business review, The Ritz Club London Online has decided to cease its relationship with WagerLogic effective on or prior to October 28, 2006. This decision will have no material impact on CryptoLogic's financial results as the Ritz accounts for less than two per cent of CryptoLogic's revenue.

"By reaffirming a long term relationship with our largest customer, we are following CryptoLogic's guiding principle of achieving the highest "ROE" - what we call "return on effort" - from our customers, products and projects," said Lewis Rose, CryptoLogic's President and CEO. "CryptoLogic's ROE strategy has seen us refine our licensee base since 2003, and the result has been record performance with revenue and earnings growing 95% and 117% respectively during that same period. We aim to continue to deepen our relationships with our major customers, while continuing active discussions with select new prospects that will enhance our roster of blue-chip global gaming and entertainment brands."

Founded in 1996, InterCasino is the oldest and one of the largest and most award-winning online casinos in the world, having hosted more than 300 million games and paid out more than $3 billion in player winnings to date. InterCasino has been voted "Top Casino" by the readers of both Gambling Online Magazine for five years in a row (from 2001 to 2005), "Best Online Casino 2005" by Casino Player Magazine, and was named the "Top Online Casino for Slots in 2005" by Strictly Slots Magazine - the latest in the company's long list of player accolades. InterCasino also ranks among the world's top five most popular casino sites by Casino City.

CryptoLogic is scheduled to release its 2006 first quarter results on Wednesday, May 10, 2006. The company's guidance remains unchanged.





08.Mai 2006

CryptoLogic Extends Licensing Agreement with OIGE

CryptoLogic has announced the extension of current commercial terms with its largest licensee, Overseas Internet Gaming Entertainment (OIGE). OIGE are the owner and operator of the InterCasino and InterPoker services, and will now remain part of CryptoLogic’s stable until at least January 1, 2012.

The latest announcement for CryptoLogic also included the news that The Ritz Club London Online has decided to cease its relationship with WagerLogic – CryptoLogic’s wholly-owned subsidiary – effective on or prior to October 28, 2006. However, CryptoLogic believe that decision will have no material impact on their financial results as the Ritz accounts for less than two per cent of revenue.


'By reaffirming a long term relationship with our largest customer, we are following CryptoLogic's guiding principle of achieving the highest 'ROE' - what we call 'return on effort' - from our customers, products and projects,' said Lewis Rose, CryptoLogic's President and CEO. 'We aim to continue to deepen our relationships with our major customers, while continuing active discussions with select new prospects that will enhance our roster of blue-chip global gaming and entertainment brands.'

[Casinonews]

09.Mai 2006

CRYPTOLOGIC INCREASES QUARTERLY DIVIDEND

71% increase reflects continued earnings growth and cash flow generation
May 9, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today that its Board of Directors has approved a 71% increase in its quarterly cash dividend to US$0.12 per common share (an annual rate of US$0.48), up from US$0.07 per common share. The US$0.12 per share quarterly dividend will commence with the company's next dividend payable on June 15, 2006 to shareholders of record as at June 8, 2006. The ex-dividend date will be June 6, 2006.

About CryptoLogic® (www.cryptologic.com)
Focused on integrity and innovation, CryptoLogic Inc. is a world leading, blue-chip public developer and supplier of Internet gaming software. CryptoLogic's 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 the company's gaming software and services to a 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).

[Casinonews]

10.Mai 2006

NEW PLAYBOY INTERNET CASINO TO USE CRYPTOLOGIC SOFTWARE

May 10, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced an exclusive three-year licensing contract to launch a new gaming site featuring Playboy, one of the world's most recognizable entertainment and lifestyle brands

The agreement, made between CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, and Oceana Caribe Licensing N.V., paves the way for a Playboy-branded Internet casino powered by CryptoLogic's award-winning casino software. WagerLogic will also provide a full range of services of e-cash management, marketing support and customer support services. The site will receive prominent placement in Playboy's international printed, online and media outlets. The agreement also enables unique, "money can't buy" promotions for players, including Playboy merchandise, invitations to Playboy-hosted events and trips to the legendary Playboy mansion.

Any online poker site launched under the Playboy name during the term of the contract will also make exclusive use of CryptoLogic software.

"With Playboy, CryptoLogic adds one of the most famous names in entertainment to its elite list of blue-chip Internet gaming brands," said Lewis Rose, CryptoLogic's President and CEO. "It's a winning combination that met our strict criteria: a recognized brand, established user base, and global marketing strength - paired with CryptoLogic's unparalleled casino software. It's also an exciting opportunity to strengthen CryptoLogic's leadership in the multi-billion-dollar Internet casino industry."

In keeping with CryptoLogic's strategy of geographic diversification, Playboy plans to market the site in markets around the world, excluding the United States. Playboy operates a growing international business, with 21 localized international editions of Playboy magazine, wireless content available in over 30 countries and 25,000 retail outlets carrying Playboy-branded products around the world.

"Playboy looks forward to rapidly expanding our broadband and wireless gaming initiatives. When we set out to find a partner for a new Playboy-branded Internet casino, CryptoLogic software was a natural fit," said Playboy's Chairman and CEO, Christie Hefner. "We needed a trusted, respected software provider like CryptoLogic who can deliver great entertainment with both integrity and innovation. The result will be a Playboy gaming site that promises an exceptional experience for players all over the world."

"Playboy is, quite simply, one of the world's most pre-eminent brands," said A.J. Slivinski, WagerLogic's Managing Director. "We're thrilled to provide software and support services for this Playboy-branded casino."

The Playboy Internet casino will join other top gaming sites using CryptoLogic-developed software, including InterCasino, William Hill, ukbetting and Littlewoods Gaming. CryptoLogic has introduced more than 50 new casino games since 2004, including Bejeweled, the wildly popular gem-matching game, and six multi-stage, multi-bonus and multi-jackpot games featuring Marvel Super Heroes such as The Hulk, Daredevil, X-Men, Blade and The Punisher. These games are proving to be among the most popular games with Internet players, accounting for more than 10 percent of licensees' casino revenue in March 2006. CryptoLogic's own patented online slot game, Millionaires Club™, is attracting significant play with its massive jackpot, which is currently over $2.5 million - the largest jackpot ever in the history of Internet gaming.

[Casinonews]

10.Mai 2006

CRYPTOLOGIC DELIVERS ANOTHER QUARTER OF RECORD RESULTS IN Q1 2006
Revenue up 33%, earnings up 58%, diluted EPS up 65%, dividend increased 71%

May 10, 2006 (Toronto, ON) – CryptoLogic Inc., a leading software developer and supplier to the global
Internet gaming market, reported record financial results for the first quarter ended March 31, 2006.
Ongoing growth in CryptoLogic’s casino and poker fees continued to fuel strong quarterly revenue,
earnings, earnings per share and EBITDA(1) results, helping the company set new quarterly highs in each
category.

"It’s been another excellent quarter for CryptoLogic, with results that surpassed our expectations," said
Lewis Rose, CryptoLogic’s President and CEO. "CryptoLogic’s innovative casino games and expanding
poker offering continue to be major growth drivers. The results: record revenue and earnings that
validate the strength of CryptoLogic’s strategy, products and customer discipline. As we welcome a new
customer — the iconic Playboy brand — CryptoLogic is poised to build on growing returns to
shareholders through increasing performance and an increase in our quarterly dividend."

CryptoLogic Delivers Another Quarter of Record Results in Q1 2006

[Casinonews]

13.Juni 2006

CRYPTOLOGIC DELIVERS MORE FIRST-TO-MARKET INNOVATIONS INCLUDING THE FIRST-EVER INTERNET VERSION OF TEXAS HOLD'EM BONUS POKER - "WHERE CASINO MEETS POKER"

Marvel Super Heroes, Thor and Silver Surfer, headline CryptoLogic's latest casino games
June 13, 2006 (Toronto, ON) - The new 11-game line up developed by CryptoLogic Inc., a leading software developer to the global Internet gaming industry, continues to deliver ground-breaking innovations with powerful animation, dynamic bonus features, growing jackpot opportunities, and the first-ever online version of the popular land-based casino game, Texas Hold'em Bonus Poker. Thundering hammers and spectacular cosmic galaxies will dazzle online players as CryptoLogic's latest casino Bonus Pack 9, offered through its subsidiary, WagerLogic Limited, also features two popular Marvel Super Heroes, Thor and Silver Surfer.

"Today's sophisticated Internet casino players demand the ultimate online experience - and that's what CryptoLogic's newest games continue to deliver," said Lewis Rose, CryptoLogic's President and CEO. "We've done the research, and we know what players want. The result is a fantastic line up expanding our successful Marvel Jackpot slot portfolio to an incredible seven games, now featuring the legendary heroes, Thor and Silver Surfer, and the debut of the Internet's first-of-its-kind version of Texas Hold'em Bonus Poker - where casino meets poker."

CryptoLogic's new Texas Hold'em Bonus Poker is the first-ever online version of the widely popular land-based casino game - combining the huge popularity of poker with the excitement of a casino card game. Players can take complete control, upping the ante to see the flop, turn and river or if they don't like their cards, fold after one bet. Players are able to beat the odds in single or multi-player mode while enjoying realistic and immersive table action.

Action hero fans are in for more online thrills with the addition of online slots featuring Marvel greats, Thor and Silver Surfer. These new 9-line, three-level progressive jackpot slots complement other Marvel-themed games - The Hulk, Daredevil, The X-Men, Blade and The Punisher - brought to life by CryptoLogic-developed software at some of the world's top Internet casinos. The new Thor slot incorporates impactful animation that summons the thunder god's mighty hammer to trigger a bonus round. Silver Surfer's stunning visuals enable players to fly through galaxies of bonus free spins and embark on an astro journey for as little as five cents.

Bonus Pack 9 also adds a dynamic range of new online slot titles including: Sweet Thing, Desert Dream, Diamond Cave, Monkey Mania, Platinum Pyramid, as well as a 20-line version of Rags to Riches and more Rapid Fire Jackpot slots, Hot Summer Nights and Mad Professor. From frequent low level jackpots to mega jackpot online offerings like Millionaires Club™ - now exceeding $3 million and the largest jackpot in the history of Internet gaming - WagerLogic's expanding Internet casino suite offers something for every casino player.

"The innovation and unique features of our new Bonus Pack 9 games prove we are ahead of the curve in delivering amazing online entertainment that meets the heart of the online gamer," added A.J. Slivinski, WagerLogic's Managing Director.

"Our latest Marvel Super Hero slots and the first-ever Internet version of Texas Hold'em Bonus Poker are further evidence that CryptoLogic continues to lead the way in bringing distinctive, first-to-market gaming innovations to Internet gaming technology," added Justin Thouin, CryptoLogic's Senior Director, Casino and High Margin Gaming.

[Casinonews]

06.Juli 2006

CRYPTOLOGIC PROMOTED TO NEW NASDAQ GLOBAL SELECT MARKET

New market sets world's highest initial listing standards
(Toronto, ON) - CryptoLogic Inc., a leading software developer and supplier to the global Internet gaming market, announced today that it has been included in the NASDAQ Global Select Market, a new market segment with the highest initial listing standards of any exchange in the world based on earnings, market value and liquidity requirements. Prior to the change, CryptoLogic had been listed on the NASDAQ National Market, which was renamed the NASDAQ Global Market.

"CryptoLogic's qualification in the Global Select Market places us among the top third of NASDAQ-listed companies," said Lewis Rose, CryptoLogic's President and CEO. "It is particularly fitting that CryptoLogic meets the market's stringent new requirements as we've set benchmarks within our own industry by adhering to the strongest standards of governance, transparency and probity."

Beginning July 3, 2006, NASDAQ-listed companies will be classified under three listing tiers - NASDAQ Global Select Market, NASDAQ Global Market, and NASDAQ Capital Market. With the NASDAQ Global Select Market, NASDAQ is recognizing the world class companies that list on NASDAQ and their commitment to the highest standards and the best corporate governance in the world.

"CryptoLogic is an example of an industry leader that has achieved superior listing standards, which clearly defines the essence of the NASDAQ Global Select Market," said Bruce Aust, Executive Vice President, Corporate Client Group. "NASDAQ is focused on leading a race to the top in terms of listing qualifications. In recognizing these companies, we are highlighting their achievement in meeting the requirements to be included in the market with the highest listing standards in the world," added Mr. Aust.

About NASDAQ
NASDAQ is the largest US electronic stock market. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day than any other US market. It is home to companies that are leaders across all areas of business including technology, retail, communications, financial services, transportation, media and biotechnology. NASDAQ is the primary market for trading NASDAQ-listed stocks. For more information about NASDAQ, visit www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom.

NASDAQ announced the new three tier listing classification in February 2006. All three market tiers will maintain rigorous listing and corporate governance standards. For additional information about the NASDAQ Global Select Market, please go to: www.nasdaq.com/GlobalSelect.

[Newsflash]

31.07.2006
PLAYBOY DEALS ITSELF INTO INTERNET POKER - WITH CRYPTOLOGIC

First-ever Playboy poker site to be powered by CryptoLogic's award-winning software
July 31, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, announced today that its award-winning poker software will launch the first Playboy-branded Internet poker site, targeting markets around the world, excluding the United States.

Under an exclusive three-year licensing contract between CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, and Oceania Caribe Licensing N.V., CryptoLogic will be the sole software product used for the Playboy Internet poker site. The companies already have a similar exclusive arrangement announced on May 10 to launch a new Playboy casino site. The agreement comprises a complete turnkey solution including customer support services, e-cash management and marketing support.

"Whether it's on TV, in print or online, Playboy is one of the world's premier entertainment brands, and CryptoLogic's poker software can take it to new people and new places," said Lewis Rose, CryptoLogic's President and CEO. "Playboy will soon join other blue-chip companies that use both our casino and poker products to bring more innovative entertainment concepts to gamers around the world."

The new agreement provides Playboy with one of the Internet's most extensive online poker offerings - and participation in one of the top five revenue-generating Internet poker networks - powered by CryptoLogic-developed software.

The poker site will use a similar marketing model to the casino site by offering unique "money can't buy" promotions for players, Playboy merchandise, invitations to Playboy-hosted events and trips to the legendary Playboy Mansion. Reflecting CryptoLogic's global diversification strategy, Playboy plans to market its Internet gaming sites in markets around the world, excluding the United States. These sites will receive prominent placement in Playboy's international print, online and media outlets. Playboy operates an extensive international business, with 21 localized international editions of Playboy magazine, wireless content available in over 30 countries and 25,000 retail outlets carrying Playboy-branded products around the world.

"In CryptoLogic, Playboy has found an innovative and proven partner who can help us capitalize on the growth and excitement of online poker," said Playboy's Chairman and CEO Christie Hefner. "With CryptoLogic's technical and industry strength and Playboy's global brand reach, our goal is to deliver an exceptional Playboy-gaming destination for online players."

"We're eager to expand our relationship with the addition of a Playboy poker site," said A.J. Slivinski, WagerLogic's Managing Director. "This agreement reinforces the value our products and expertise can provide to the world's top gaming and entertainment brands."


About Playboy (www.playboyenterprises.com)
Playboy Enterprises, Inc. (NYSE: PLA, PLA.A) is a brand-driven, international multimedia entertainment company that publishes editions of Playboy magazine around the world; operates Playboy and Spice television networks and distributes programming globally via DVD and a network of websites including Playboy.com, a leading men's lifestyle and entertainment website; and licenses the Playboy and Spice trademarks internationally for a range of consumer products and services.

About Oceania Caribe
Oceania Caribe Licensing N.V. is a private operator in the Netherlands Antilles with the exclusive rights to the Playboy brand for use in its Internet gaming business.