1C Company acquires an in-house development studio of Akella

For immediate release

Moscow, November 26 2007 - 1C Company, the leading Eastern and Central European publisher, is pleased to announce that it has acquired Akella's "Sea Dog" in-house development studio.

The Sea Dog team is comprised of experienced developers who contributed to the creation of such hits as Sea Dogs, Pirates of the Caribbean and Age of Pirates: Caribbean Tales. Within Akella, this development studio has become one of the few Russian teams successfully developing games for the Xbox and Xbox 360.

The team is currently working on the Age of Pirates: Captain Blood project that will be released on PC and Xbox 360. The acquisition of Akella's development studio is another step to build upon 1C's status as a leading developer and publisher of entertainment software.

Once the current project is completed, 1C's newly acquired studio will develop a wide range of innovative titles for multiple game platforms. According to the agreement between 1C and Akella, Akella has acquired the worldwide publishing rights to PT Boats: Knights of the Sea.

PT Boats: Knights of the Sea is a breakthrough action simulation featuring torpedo boats in World War II. Akella was previously developing the title when 1C was a co-publisher and investor. This title has approached a closing stage of its development and has recently been successfully presented at NVIDIA's Editor's Day as a next-gen technology product. It will become the first Russian title to be released in both DirectX 9 and DirectX 10. PT Boats: Knights of the Sea makes a successful contribution to keeping Akella's traditions as a leading naval game developer alive. It is destined to become one more hit in Akella's top lineup of products.

The successful series of pirates titles will be continued by another of Akella's studios and a new announcement will follow shortly.

About 1C Company

1C Company specializes in distribution, publishing and development of mass market software. Founded in 1991, 1C has become the leading publisher and distributor of computer games in Eastern and Central Europe. 1C Company is widely acknowledged as a game developer and has several internal studios. Internal developments of 1C include IL-2 Sturmovik, IL-2 Sturmovik: Forgotten Battles, Aces Expansion Pack, Pacific Fighters and Theatre of War. 1C Company works as a publisher and producer with over 30 independent development studios and has produced over 100 projects for PC and consoles.

For more information on 1C please contact us at the numbers above or go to our website at www.1cpublishing.com.

About Akella

Akella, founded in 1993 and headquartered in Moscow, Russia is a leading developer, publisher and distributor of computer games in Russia, CIS and Baltic countries.

To date, Akella has released more than 600 gaming, educational and developing titles. The biggest Russian localization studio is owned by Akella making the most complicated gaming products available for Russian consumers with high quality translation reliably delivered on deadline. Some of the most famous titles include the best-selling releases: Neverwinter Nights 2, the Prince of Persia series, MMORPG EverQuest II, Painkiller, Sacred, Fahrenheit, Test Drive Unlimited, Armed Assault and others.

In-house and co-development studios are currently creating around 60 games. These studios are engaged into developing a diverse lineup of products varying from cartoon-based children games to the biggest of brand titles (Postal 3 for Xbox 360 and PC; Disciples 3: Renaissance, Jagged Alliance 3 - for PC, and others).

Akella's shareholders include Quadriga Capital (EBRD fund) and Intel Capital.