Alawar Entertainment and NewEdge launch Alawar NewEdge Mobile

Alexandria, VA, Oct. 12 -- Alawar Entertainment, a leading publisher of casual games, and NewEdge, a renowned developer and publisher of Java games, today announced the creation of Alawar NewEdge Mobile, a new company that will specialize in the publication and distribution of games for mobile phones. Olga Znamenskaya, commercial director for NewEdge, has become the CEO of Alawar NewEdge. The ownership structure of the company has not changed.

According to marketing intelligence firm iSuppli Corporation, the market for premium mobile content will exceed $44 billion in 2011. The premium mobile content market is expected to reach $20 billion this year. Digital images, the top mobile content product in 2006, will fall to fourth place in 2011. Music downloads, mobile games, ringtunes, and streaming and on-demand video are destined to become the dominant mobile content categories According to a report by information technology research company Gartner, the worldwide revenue from selling mobile games will rise 50% in 2007 to $4.3 billion, up from $2.9 billion in 2006. In 2011, the market will reach $9.6 billion.

As a result of the deal, NewEdge, which previously developed and published games for wireless handsets, will focus on making games. The publication and distribution of mobile content will become the domain of Alawar NewEdge Mobile, which will act as the exclusive publisher of titles developed by NewEdge.

Alawar NewEdge Mobile launches with a catalog of more than 100 games, including the mobile versions of some of Alawar Entertainment's most popular PC titles, including: Magic Ball 2 Mobile Edition, the mobile port of one of the most famous Breakout games for the PC; the mobile version of The Treasures of Montezuma; the Snowy the Bear series; and more.

In the near future, Alawar NewEdge Mobile plans to release as many as 15 new casual games and launch a massive distribution campaign in the Western and Eastern European markets. Also, in addition to the publication of casual games, Alawar NewEdge Mobile will publish games of other genres, including titles based on movies.

"Alawar is one of the leading publishers of casual games for the PC, but I believe one of the best ways for us to move forward is to enter new markets and introduce our games to multiple platforms," said Alexander Lyskovsky, president of Alawar Entertainment. "Mobile game publishing is very similar to our primary business. At the start of 2006, we began researching the mobile market in detail, and partnered with NewEdge to help us achieve our plans. The professionalism of their team, their creativity and our mutual success while working together made the formation of Alawar NewEdge Mobile a natural step in the development of our companies."

"I believe the combination of NewEdge's knowledge of the mobile market and our technologies and Alawar's experience in the game publishing business complement each other," said Znamenskaya. "The collaboration of our companies opens new prospects for both Alawar and NewEdge in the market for premium mobile content."

Alawar Entertainment, Inc.

http://www.alawargroup.com

http://www.alawar.com

Alawar Entertainment has specialized in the development, publication and distribution of casual games since 1999. The company has published more than 150 titles, won fans all over the world and is the biggest provider of casual games in Eastern Europe. Today, Alawar works with more than 50 developers, providing a full range of services that includes production, distributing and marketing. Alawar also distributes its own games via its broad network of Web sites. The company's releases have also found a home on the Web sites of numerous other online distributors. In addition to distributing games online, Alawar works with CD publishers in more than 20 countries. In 2006, Alawar significantly increased its presence in Eastern Europe, gaining a dominant 65% share of the casual games market.

New Edge

http://newedge.ru

Founded in 2004, New Edge specializes in the development and publication of Java games and applications. The company has developed more than a dozen games for mobile phones and published about 100 games from external developers in the Eastern European market. During this time, the company gained considerable experience in the development and implementation of various software applications for mobile platforms -- the main component of the company's growth.

PR and Mass Media department of Alawar Entertainment, Inc.

Tatiana Chernova ( pr@alawargroup.com)

Phone: + 7 913-905-55-43

David Laprad ( david@alawar.com)

Phone: (615) 785-7472