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/ [email protected]
Stephen Taylor, Chief Financial Officer Karen Passmore, ext. 228/ [email protected]
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.

[Newsflash]

01.08.2006

CRYPTOLOGIC DECLARES QUARTERLY DIVIDEND

August 1, 2006 (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$0.12 per common share. The dividend will be paid on September 15, 2006 to shareholders of record as at September 8, 2006. The ex-dividend date will be September 6, 2006.

[Newsflash]

03.08.2006
CRYPTOLOGIC DELIVERS RECORD RESULTS IN Q2 2006

Revenue up 52%, diluted EPS up 79%, as innovative casino games offset seasonality
and “World Cup effect”

August 3, 2006 (Toronto, ON) – CryptoLogic Inc., a leading software developer and supplier to the
global Internet casino and Internet poker markets, reported record financial results for the second quarter
and six months ended June 30, 2006. Better-than-expected performance was attributable to strong organic
growth in online poker software fees and a particularly strong quarter in online casino software fees,
driven by the release of innovative new casino games and CryptoLogic’s expanded high-margin slot
portfolio.

These achievements are especially notable because the second quarter is typically slower in online
gaming and because the company’s licensees had to compete for players’ attention with the World Cup—
particularly in the UK and continental Europe.

“CryptoLogic’s new casino games went head-to-head with the World Cup and warm weather - and won.
Our Q2 revenue and earnings were far ahead of expectations and surpassed our results in Q1 2006, which
is typically a stronger quarter,” said Lewis Rose, CryptoLogic’s President and CEO. “Players have
embraced our new games and industry commentators agree that we have ‘taken the online slot experience
to the next level.’ CryptoLogic’s player-centric, product diversification and innovation strategy is paying
off.”



Other highlights included:

· Product diversification and innovation. Internet casino license fees represented 59% of
revenue, while Internet poker fees contributed 31%. Compared to Q1 2006, total revenue grew
12%, Internet casino fees grew 19% and Internet poker fees dipped 4%. During Q2 2006, the
company launched 11 innovative new casino games, including additional Marvel Super Herothemed
slots and the first-ever online version of Texas Hold’em Bonus Poker. As expected,
Internet poker results were affected by competition for players’ attention from the World Cup.

· Geographic diversification. More than 65% of licensees’ revenue continued to be generated from overseas markets. The UK and continental Europe together accounted for over 60% of total
Q2 2006 revenue.

· Customer diversification. After the quarter-end, WagerLogic signed an agreement to launch the
first-ever online Playboy-branded Internet poker destination. Visitors to the new site will tap into
a shared poker room with more than 9,000 simultaneous players from all licensees’ sites.

· Dividend. On August 1, CryptoLogic’s Board of Directors declared its next quarterly cash
dividend of US$0.12 per share, payable on September 15, 2006 to shareholders of record on
September 8, 2006.


Record Financial Performance
Total Revenue. CryptoLogic increased its revenue by 52% to a record $30.4 million (Q2 2005: $19.9
million), well ahead of the company’s estimate of $26.4 to $26.7 million, and 12% higher than in Q1
2006—typically a stronger quarter. The performance was attributable to solid organic growth in Internet
poker fees and stronger than anticipated growth in Internet casino fees.

EBITDA. EBITDA for the quarter grew 69% to a record $9.4 million (Q2 2005: $5.6 million).
EBITDA margin grew in the quarter to 31% of revenue (Q2 2005: 28%).

Earnings and Earnings per Diluted Share. At a record $8.2 million, CryptoLogic’s Q2 2006 earnings grew 73% (Q2 2005: $4.7 million). Earnings per diluted share rose 79% to $0.59 (Q2 2005: $0.33), ahead of the company’s guidance of $0.48 to $0.49 due to better-

Balance Sheet and Cash Flow. CryptoLogic’s financial strength continued to be reflected in its strong
balance sheet and operating cash flow. At June 30, 2006, total cash grew to $126.9 million (comprising
cash and cash equivalents, short term investments, and security deposits), or $9.23 per diluted share
(December 31, 2005: $99.1 million, or $7.05 per diluted share). The company continues to be debt-free.
CryptoLogic’s working capital at June 30, 2006 rose to $91.7 million, or $6.66 per diluted share
(December 31, 2005: $73.6 million, or $5.23 per diluted share). Cash flow from operating activities was
$18.3 million in Q2 2006 (Q2 2005: $6.6 million).

Half-year Results
Revenue for the first half of 2006 increased 43% to $57.3 million (Q2 2005 YTD: $40.2 million).
EBITDA for the first six months in 2006 rose by 59% to $18.1 million (Q2 2005 YTD: $11.4 million).
EBITDA margin for the first six months in 2006 grew to 32% of revenue (Q2 2005 YTD: 28%).
Earnings for the first half of 2006 improved by 66% to $15.9 million, or $1.15 per diluted share (Q2 2005
YTD: $9.6 million, or $0.67 per diluted share). Cash flow from operating activities was $29.7 million in
the six months ended June 30, 2006 (Q2 2005 YTD: $9.2 million).

Product Diversification and Innovation
CryptoLogic grew its Internet casino software licensing revenue by 53% to $17.9 million in the quarter,
and by 32% to $32.9 million for the six months ending June 30, 2006 (Q2 2005: $11.7 million; Q2 2005
YTD: $24.9 million). The Q2 2006 result was significantly ahead of expectations and 19% higher than in
Q1 2006. Internet casino remains CryptoLogic’s largest revenue contributor at 59% of Q2 2006 revenue
and 57% of year-to-date revenue.

Internet casino fees in the quarter were ahead of the company’s expectations principally because of the
popularity of its expanding, high-margin online slot portfolio. The company released 11 new games in the
quarter, including successful slot titles such as Sweet Thing, an updated version of Rags to Riches, and the
new Marvel Super Hero-themed games based on Thor and Silver Surfer. The industry’s first-ever online
version of the popular land-based casino game, Texas Hold’Em Bonus Poker, was also a stand-out. Other
games, such as Bejeweled and Millionaires ClubTM, also continued to be popular. At $3.7 million,
CryptoLogic’s Millionaires ClubTM jackpot continues to set online records.

[Newsflash]

11.08.2006
CryptoLogic: Größeres Wachstum im Poker-Geschäft

CryptoLogic Inc, eine in den USA (NASDAQ), Kanada (Toronto Stock Exchange) und London, an der Börse notierte Firma, hat bekannt gegeben, dass Ihr kontinuierliches Wachstum in der Vergangenheit im Bereich Online Gaming, sich zukünftig weiter fortsetzen wird.

CryptoLogic ist einer der führenden Entwickler und Anbieter von Internet Casino Software und Internet Poker Software für den internationalen Online-Gaming Markt. Die Software von CryptoLogic wird zum Beispiel bei vielen der führenden UK-Pokerrooms (Betfair, William Hill Poker, Littlewoods, UK Betting) eingesetzt. Cryptologic hat jetzt seine Finanzergebnisse für das 2. Quartal 2006 bekannt gegeben.

Die Gewinne sind vor allem dem Wachstum bei den Online Poker Software Gebühren und den Online Casino Gebühren, zuzuschreiben. Die Firma ist umso mehr erfreut darüber, da das 2.Quartal normalerweise saisonbedingt nicht zu den stärksten Quartalen im Online-Gaming gehört. Zusätzlich mussten die Betreiber mit der FIFA Fussball Weltmeisterschaft und dem besonders heißen Wetter um die Aufmerksamkeit der Spieler kämpfen.

Lewis Rose, Präsident und CEO von CryptoLogic Inc. sagte: "Die neuen CryptoLogic Casino Games mussten gegen die Fussball Weltmeisterschaft und das warmen Wetter ankämpfen – und haben gewonnen. Unser Einkommen und der Verdienst im 2.Quartal haben unsere Erwartungen und die Ergebnisse des 1.Quartals 06 (welches normalerweise ein starkes Quartal ist) weit übertroffen. Die Spieler haben unsere neuen Online-Spiele akzeptiert und die Industrie hat begriffen dass wir "die Online Slot Erfahrung für das nächste Level" bieten. Cryptologic's Spieler orientierte, auf Produktvielfalt und Innovation ausgelegte Strategie zahlt sich jetzt aus".

Anbei einige andere Fakten aus der CryptoLogic Verlautbarung:
Die Gebühren für Internet Casinos haben, hauptsächlich bedingt durch die hohen Margen bei unserem Online Slot Angebot, die Erwartungen übertroffen. Die Firma startete 11 neue Online Games im 2. Quartal, wie zum Beispiel das Spiel Sweet Thing (eine erweiterte Version von "Rags or Riches" oder das neue Marvel Superhelden-Game, welches auf den Figuren Thor und Silver Surfer, basiert.

Cryptologic präsentierte als erster Anbieter in der Online-Game Industrie, das auf einem konventionellen Casinospiel basierende Online-Spiel "Texas Hold'em Bonus Poker". Andere Spiele, wie z.B. Bejeweled an Millionairs Club, haben ebenfalls weiterhin an Popularität gewonnen. Mit einem Jackpot in Höhe von 3,7 Mio $ bietet Cryptologic's Millionairs Club setzt dieses Spiel betreffen der Jackpothöhe, neue Rekordmarken.

"Die Einnahmen durch Internet Poker Lizenzen stiegen um 41% auf 9,3 Millionen $ im 2. Quartal 2006, und um 56% auf 18,9 Millionen $ wenn man die kompletten ersten 6 Monate des Jahres 2006 betrachtet (2005: $6,6 Millionen, Q2 2005 YTD: $12,1 Millionen). Das Wachstum im Q2 war teilweise durch das starke Wachstum der Einnahmen durch Poker–Lizenzen, bedingt. Die Einnahmen durch direkte Pokergebühren waren 4% niedriger als im Q1 2006.

Wie erwartet hatte die Fussball Weltmeisterschaft zu einem verminderten Interesse der Pokerspieler an Online-Games geführt. Durch Poker Gebühren wurden im 2.Quartal 31% der Gesamteinnahmen erzielt und 33% der YTD (year-to-day) Gewinne".

Bedingt durch das Wachstum in andere geographische Regionen, hat CryptoLogic mitgeteilt, dass 65% des Gebühren-Gesamtgewinns durch Gebühren von internationalen Spielern entstanden sind. Der britische Markt und der europäische Markt haben zusammen mit 60% (bezogen auf die 65% Gebühren-Gesamtgewinn aus allen anderen Regionen) des Gesamtgewinns zu diesem Ergebnis beigetragen.

CryptoLogic teilte mit, dass man sich im Online-Gaming weiterhin auf das Wachstum in anderen geographischen Regionen, konzentrieren werde. Die Firma entwickelt Software für Internet-Casinos und Internet-Poker Anbieter. CryptoLogic bietet keine Software und Dienstleistungen im Sportwettenbereich an und keiner der CryptoLogic-Kunden akzeptiert Wetten aus den USA.

Wie vor kurzem bei PokerNews berichtet, hat Cryptologic bekannt gegeben, dass mit der Marke "Playboy" ein exklusiver 3-Jahres Vertrag für den Betrieb der Playboy Online Poker Seite, abgeschlossen wurde. Die Vereinbarung beinhaltet für CryptoLogic weiterhin die Verantwortlichkeit für den kompletten Kundensupport, die E-Cash Abwicklung und die Marketing Unterstützung.

Tony Bromham Pokernews

[Casinonews]

29.08.2006

CRYPTOLOGIC ENHANCES CUSTOMER SERVICE AND PLAYER EXPERIENCE WITH 'INTERACTIVE INTELLIGENCE' CONTACT CENTRE SUPPORT

August 29, 2006 (Toronto, ON) - Strengthening the company's 'blue chip' support services for online players, CryptoLogic Inc., a leading software developer to the global Internet gaming industry, has enhanced its customer service system for its 24/7, multi-lingual contact centre provided through its subsidiary, WagerLogic Limited. The innovative "Interactive Intelligence" system automates routing of requests to the best representative, who can easily manage all interactions with players, via telephone, fax, emails and chat, from a single source platform. The new support system improves player retention through faster, more personal service from customer service representatives with the right skill set in the right language.

"CryptoLogic prides itself on delivering the ultimate online experience to its customers' players - and providing superior customer service plays an important role in achieving this goal," said Lewis Rose, CryptoLogic's President and CEO. "We've said it time and time again: we're listening to the players and know what they want. Our enhanced contact centre system enables CryptoLogic to provide the smart, customized support and service that players want - quickly and efficiently."

The new system gives customer service representatives an in-depth view of player information in order to provide tailored and personalized service, every time. The technology also offers real-time visibility into current and historical contact centre operations, so staff can be allocated optimally to address issues in priority sequence and to maintain superior service levels regardless of contact volumes.

"CryptoLogic continues to be an industry leader in implementing innovative technologies to enhance the online player and customer service experience," added A.J. Slivinski, Managing Director of WagerLogic Limited, CryptoLogic's licensing subsidiary. "Future enhancements to the contact centre will expand our Customer Relationship Management solution and allow customer service representatives to be more proactive in providing marketing support."

[Casinonews]

01.09.2006

CRYPTOLOGIC CONFIRMS PREVIOUSLY ANNOUNCED BETFAIR EXIT

Betfair poker relationship winds down as announced previously; Other poker licensees grew solidly, with revenue up 47% in most recent quarter

September 1, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, confirmed today the previously announced plans that Betfair, one of the company’s poker-only customers, will move to an in-house technology solution at the end of October 2006. As previously announced, Betfair’s departure is expected to have no material adverse effect on CryptoLogic’s 2006 financial results.

"As a technology company, Betfair is unique amongst our customer base so this is a natural progression for them. We are pleased to have enjoyed a mutually beneficial relationship," said Lewis Rose, CryptoLogic’s President and CEO. "CryptoLogic’s record 2006 year-to-date earnings show that we continue to profit from a well-diversified portfolio of products, clients and markets. With the recent announcement of Playboy joining CryptoLogic’s blue-chip Internet casino and poker client base, we look forward to continued growth overall."

The company has recorded excellent growth in the Internet poker market. Excluding Betfair, fees from WagerLogic Limited’s (CryptoLogic’s licensing subsidiary) licensees grew 47% on a year-over-year basis in the second quarter of 2006. While Internet poker accounted for 31% of CryptoLogic’s Q2 2006 revenue, CryptoLogic’s core Internet casino software business to deliver excellent results. Casino, which grew 53% from a year ago, remained the company’s largest profit contributor at 59% of Q2 revenue.

"WagerLogic continues to benefit from CryptoLogic's strong market position, its reputation for integrity and its relationships with some of the world’s most recognized entertainment brands," said A.J. Slivinski, WagerLogic’s Managing Director. "This position is underscored by strong organic growth and new licensees such as Playboy signing up to use both our casino and poker offering."

[Casinonews]

07.09.2006

CryptoLogic enhances Internet poker platform with 'Distributed Poker'

State-of-the-art platform to spur growth through seamless access to world's most attractive e-gaming markets, tripling of poker room capacity

September 7, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, has completed a major upgrade to its poker platform. The company's new "Distributed Poker" system provides licensees seamless mobility to locate their shared online poker room in markets that offer the best growth opportunities, without any interruption to games or players.

The enhancements have also more than tripled the capacity of the room to enable over 50,000 simultaneous online players, allow for near-perfect network uptime, and will enable "live", seamless updates of new features and games-without any interruption to the room.

"Distributed Poker gives our group of poker customers the ability to select the most attractive markets for their shared room, both today and in the future. This is a critical advantage as operators prepare for regulation of the UK market and as new opportunities present themselves around the world," said Lewis Rose, CryptoLogic's President and CEO.

According to Michael Starzynski, CryptoLogic's Chief Technology Officer, "CryptoLogic is one of the top five revenue-generating poker rooms on the Internet thanks to consistent game innovation and network enhancements like Distributed Poker. This new platform infrastructure improves the gaming experience for players and licensees through market-leading flexibility, scalability and resilience."

CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, is responsible for licensing the CryptoLogic-developed Internet poker room. Recently, the room has offered new features like LightningTM ring games and Thunder Tournaments, which give players the faster games they want, and SIXPAKTM, for "final table" action in every hand. With Distributed Poker, exciting new games and features like these can be introduced to the shared poker room "live", without disruption to games or players.

"Distributed Poker represents a state-of-the-art platform for CryptoLogic to continue its strong market position in online poker and execute its strategy of game innovation that satisfies the Heart of the Online Player," noted A.J. Slivinski, WagerLogic's Managing Director.

WagerLogic's Internet poker licensees include interpoker.com, williamhillpoker.com, littlewoodspoker.com, ukbettingpoker.co.uk, pokerplex.com, classicpoker.com, sunpoker.com, totalbetpoker.co.uk and an upcoming new Playboy poker site.

[Casinonews]

18.09.2006

CRYPTOLOGIC BOARD CHANGE

September 18, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer and supplier to the global Internet gaming market, announced today that Mr. Edward Greenspan has resigned as a Director of the Board of the company. Mr. Greenspan has indicated that his substantial workload associated with his law practice, particularly as the defense lawyer in the Hollinger International case, no longer permits him to devote the time and attention to serve fully as a Director of CryptoLogic.

The Chairman of the Board, Mr. Robert Stikeman, sincerely thanked Mr. Greenspan for his valued contributions over the past years.




25.09.2006

CRYPTOLOGIC SELECTS IRELAND FOR ITS GLOBAL HEADQUARTERS

European headquarters will provide the company strategic flexibility to accelerate expansion and strengthen customer support in major growth markets

September 25, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, today announced its proposal to advance its global strategy by establishing its headquarters in the Republic of Ireland in January 2007, subject to regulatory and shareholder approvals. The company also proposes to adopt the Alternative Investment Market (AIM) of the London Stock Exchange as its primary market, and intends to maintain its Toronto and NASDAQ listings. CryptoLogic's software development team will remain in Canada.

"CryptoLogic's business is increasingly centered in Europe, and establishing our organization in that market is the logical next step to support our international growth plans," said Lewis Rose, CryptoLogic's President and CEO. "For CryptoLogic, this is about being closer to our customers, and to the world's most thriving Internet gaming markets. By expanding our presence in gaming-friendly jurisdictions, CryptoLogic enhances its flexibility to pursue all strategic opportunities and broaden the services offered to our customers."

Strategic Purpose of Proposal
The management and Board of Directors believe that locating the company's headquarters in Europe will advance its global strategy by bringing considerable strategic benefits, which include:

- Bringing the company closer to the world's major markets that embrace Internet gaming, and therefore, closer to its key customers, investment community and prospects;
- A gaming-friendly environment that enables the company to provide a wider range of marketing support and brand management services to licensees;
- Broadening the company's strategic acquisition opportunities; and
- Aligning the company's primary stock exchange listing with its peer group.
After record revenue and earnings in 2005, CryptoLogic conducted a comprehensive review over the past year of the key strategic steps needed to maintain and strengthen its leadership position in the Internet gaming industry.

CryptoLogic's management team and Board of Directors concluded that establishing its base in Ireland would give the company a broader range of strategic options to accelerate its growth and support its customers. This includes offering marketing and brand management services, such as supporting the company's largest customer, InterCasino, in its marketing efforts, and working closely with the newest customer, Playboy, in Europe to develop and implement its non-US marketing initiatives.

CryptoLogic has already established major components of its system infrastructure in Ireland, including its electronic cash processing system and its recently announced Distributed Poker platform. Ireland is recognized as an attractive Internet gateway to Europe with state-of-the-art technology infrastructure and skilled personnel to support CryptoLogic's expansion in the fast-growing and global Internet gaming market.

Reorganization of Headquarters
The headquarter functions of the Chief Executive Officer, the Chief Financial Officer, the Vice President of Human Resources, Business Development, and the Head of Investor Relations will be transitioned to Ireland. Mr. Rose is committed to remain as President and CEO into 2007 to assist with an orderly transition until a new CEO based in Ireland can be recruited. For family reasons, Mr. Rose is unable to move to Ireland permanently. The search for a new CEO is already underway. Stephen Taylor, CryptoLogic's CFO, will be based in Ireland. Other senior executives (including the Chief Technology Officer) will continue in their current positions and locations, and the company's remaining operations in Canada, Cyprus and the UK will be unaffected.

The Chairman will continue in place, and the current Board of Directors will continue until some Directors may be succeeded by new European non-executive Directors to reflect CryptoLogic's growing European-oriented business.

Primary Listing on AIM
By adopting a primary listing on London's AIM, CryptoLogic joins a broad peer group that is researched extensively by UK-based analysts. The UK has emerged as the global centre for Internet gaming and is leading the way in implementing a world-class regulated market for online gaming. CryptoLogic has long advocated regulation as the best solution for the safe, secure and responsible use of this form of online entertainment. CryptoLogic's certification to the highest government standards and a record of public company transparency and disclosure give the company a competitive advantage in working with major, brand name customers that will lead the next phase of Internet gaming industry growth.

International diversification has been one of CryptoLogic's core business strategies for the past four years. More than 65% of its licensees' revenue now comes from international sources, a steady rise from just 30% in 2001. With more than 60% of licensees' revenues derived from the UK and continental Europe today, it makes sense for CryptoLogic to be nearer its customers and future prospects.

Terms of the Reorganization
CryptoLogic proposes to exchange all existing common shares for shares in the new Irish-based company, to be called CryptoLogic PLC. This would be done on a tax deferred basis for shareholders. It is intended that the share exchange would be effected by way of a Plan of Arrangement using an exchangeable share structure that will be subject to Canadian court approval. Details will be set out in an Information Circular to be mailed to shareholders. An application is planned for the shares of CryptoLogic PLC to be traded on AIM in London. A special meeting of shareholders is planned for late November or early December. The company anticipates that, subject to the receipt of all required regulatory and shareholder approvals, the reorganization will be effective January, 2007.

Financial Estimates
One-time expenses related to the reorganization and to establish an Irish headquarters are estimated to range from $8.0 to $8.5 million. Approximately 10% of these non-recurring costs have been expensed by June 30, 2006. Approximately 50% is expected to be expensed for the full year 2006, largely related to professional fees. The remaining 50% will be expensed in 2007. In addition, there will be one-time capital expenditures of approximately $1.0 million associated with the set up of new premises in Ireland.

There will be incremental operations and staff costs associated with an Irish-based headquarters, which are expected to be approximately $2.5 to $3.0 million per annum. CryptoLogic believes that the strategic benefits, as outlined above, of locating in a gaming-friendly environment, are expected to yield a significant return on investment by positioning the company for the future.

In August, CryptoLogic reported record results for Q2 2006. Revenue rose 52% to $30.4 million for the three months ended June 30, 2006, compared with the same period in 2005. Earnings rose 73% to $8.2 million compared with Q2 2005. At June 30, 2006, CryptoLogic's total cash position was $126.9 million.

Excluding the one-time expenses related to today's announcement, Q3 2006 guidance remains unchanged.

[Casinonews]

27.09.2006

CRYPTOLOGIC ANNOUNCES RENEWAL OF NORMAL COURSE ISSUER BID

September 27, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming industry, announced today that its Board of Directors has authorized the company's renewal of its Normal Course Issuer Bid. Purchases under the bid may commence on September 29, 2006 and will terminate on September 28, 2007.

CryptoLogic's share purchase program authorizes the company to purchase up to 1.35 million shares of the issued common shares, representing approximately 10% of the public float. There are currently 13,604,984 common shares issued and outstanding. Purchases will be made on the open market through the facilities of the Toronto Stock Exchange and at the market price at the time of purchase. No more than 2% of the outstanding shares may be purchased within any 30 day period in accordance with exchange rules. The common shares purchased by CryptoLogic during the course of the Normal Course Issuer Bid will be cancelled.

CryptoLogic and its Directors believe that the company's common shares have been trading at prices that do not reflect the underlying value of the company, given its earnings, positive cash flow and strong balance sheet. As a result, the company believes that its common shares are a good investment at current and recent prices. Under its 2005/2006 bid, CryptoLogic most recently repurchased and cancelled 239,200 shares at an average price of Cdn$19.44.

[Casinonews]

02.10.2006

U.S. INTERNET GAMING LEGISLATION VALIDATES CRYPTOLOGIC'S GLOBAL STRATEGY

Licensees will no longer take U.S. bets; after five years of planning, software provider well-positioned with revenue and customers based in world's most attractive e-gaming markets.

October 2, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming industry, announced that effective immediately licensees of WagerLogic Limited, the company's licensing subsidiary, will not take wagers from U.S.-based players. This is a result of new legislation expected to be signed today by President Bush that prohibits financial transaction processing in the U.S. online gaming market. The company has spent five years preparing for this eventuality by shifting its revenue base to fast-growing European markets, and is positioned for long-term profitability and growth.

"Since 2001, CryptoLogic has been shifting its business to Europe, and our record revenue and earnings in 2005 and 2006 to date flow from our success in the markets that embrace Internet gaming," said Lewis Rose, CryptoLogic's President and CEO. "While the new U.S. developments will be a challenge for the whole industry, our company's diversification, strong balance sheet, thriving European customers and potential new business in emerging markets enable us to face the future with confidence."

With more than 70% of its licensees' revenue now coming from outside the U.S., CryptoLogic is one of the industry's most geographically diversified businesses. The company also enjoys a very strong balance sheet. At June 30, 2006, CryptoLogic had $126 million in cash, $91.7 million in net working capital and no long term debt. Based on historical results, the annualized impact on revenue of today's decision would have been approximately $30 million for the full year 2006, with an estimated effect on earnings of approximately 80% of that amount. In its remaining business, the company continues to maintain its corporate objective of growing revenue by 20%. Continued, strong organic growth, the launch of Playboy's non-U.S. facing Internet casino and Internet poker sites and potential signings of new licensees will help CryptoLogic in this goal.

On the evening of Friday, September 29, the U.S. Congress adopted the Unlawful Internet Gambling Enforcement Act of 2006, which prohibits financial transactions processing for certain types of Internet gaming. Certain types of gaming are exempt, including horse racing, state lotteries and intratribal transactions. The legislation addresses previous uncertainties in the law governing non-sports Internet gaming in the U.S.

The U.S. approach contrasts with that of the United Kingdom and other European markets, which are moving to regulate Internet gaming for fiscal and social benefits.

"We believe Internet gaming can and should be regulated, licensed and taxed. The U.K. model is the right one: create a safe, secure and regulated environment for players to enjoy this form of entertainment," Rose said. "We will continue to advocate regulation as the logical solution for all stakeholders, including players, investors, and governments. In the meantime, we will continue to deepen our existing relationships and attract potential new customers in Europe, Asia and other thriving and emerging markets."

CryptoLogic is proceeding with its plan to locate its global headquarters in Ireland, with continued commitment to its operations in Canada, the United Kingdom, Cyprus and Singapore.

As a global and publicly-traded developer and supplier of Internet casino and poker software, CryptoLogic is one of the world's few companies with government-approved Internet gaming software and remains committed to the highest standards of regulatory compliance.

[Casinonews]

10.10.2006

CRYPTOLOGIC BRINGS A NEW DIMENSION TO INTERNET CASINOS - WITH CUBIS®

E-gaming software leader introduces first slot version of wildly popular 3D puzzle game

October 10, 2006 (Toronto, ON) - CryptoLogic Inc., a leading software developer to the global Internet gaming market, is bringing one of the Internet's most popular online casual games to some of the world's top Internet casinos. The company announced today that it has signed an exclusive five-year agreement for the rights to develop the online slot version of Cubis®, an award-winning, visually stunning, hugely popular three-dimensional puzzle game. The game will be offered to licensees through CryptoLogic's subsidiary, WagerLogic Limited, starting in the fourth quarter of 2006.

"CryptoLogic continues to lead the innovation of play-for-money slot versions of the world's most popular online casual games - from Bejeweled to Cubis®," said Lewis Rose, CryptoLogic's President and CEO. "CryptoLogic's Cubis® will be another "first" in online slots. By combining the appeal of a puzzle game with the excitement of a slot machine, CryptoLogic will again deliver unique online entertainment to players, and drive profitability for our customers."

Created by FreshGames, Cubis® is already played online more than seven million times a month, and consistently ranks in the top 10 games played on major portals such as Yahoo!, AOL and MSN. Cubis® was also selected over many other games to be bundled on the US release of the Treo 700w, and is one of nine premium games to launch on the newest iPods.

According to Justin Thouin, CryptoLogic's Vice President, Casino Software Development, "Our first casual game slot, based on Bejeweled, the fast-paced, gem-matching game, has quickly become a player favourite. With all of the success of Cubis® online, on phones and on iPod, we expect a tremendous reception for this brand new slot, too."

The slot version of Cubis® will feature a three-dimensional board, intense graphics, a variety of game backgrounds and hidden secrets. With up to 15 winning lines and possible payouts worth 50,000 coins, players can wager as little as one penny to as much as $300 per play.

"CryptoLogic's software innovations continue to translate into exciting growth for our licensees," added A.J. Slivinski, WagerLogic's Managing Director. "With its stunning visuals and unique game action, Cubis® takes online slots to a whole new dimension. It is certain to be a favourite with fans of other casual online games, and players everywhere."

CryptoLogic has introduced more than 60 new casino games since 2004. Recent releases include successful slot titles such as Sweet Thing, an updated version of Rags to Riches, and new Marvel Super Hero-themed games based on Thor and Silver Surfer. Another standout was the industry's first-ever online version of the popular land-based casino game, Texas Hold'Em Bonus Poker. CryptoLogic's own patented online slot game, Millionaires Club®, currently offers a $4.5 million jackpot, the largest in online gaming history.