Avalon Style Entertainment acquisition

MOSCOW, Russia – October 30, 2008 - Leading Eastern and Central European publisher 1C Company officially announced today Avalon Style Entertainment has become 1C-Avalon. As the newest part of one of the biggest Russian publishers this development studio will continue to create top-selling titles such as their hit 4x4 racing game series.

1C has once again increased the number of its internal studios and recruited a team of highly experienced professionals to create unique and compelling content. 1C has recently added several established game companies such as developer Ino-Co and the Russian publisher BUKA to their substantial stable.

"This signed agreement is a real step forward for 1C and Avalon. It continues to strengthen 1C’s position as the largest Eastern and Central European publisher, developer and distributor," said Yuri Miroshnikov, Head of the Game Division for 1C Company. "Avalon is a professional and experienced team which has already released 13 projects. This deal is a very important event for both sides."

"Our team, in its new status, will concentrate on developing games for both PC and popular consoles," said Vyacheslav Gordeev, Director of Avalon Style Entertainment. "By creating 1C-Avalon we will ensure tight integration and cooperation with a top, internationally known publisher. I believe that 1C’s support will help us become capable of creating compelling game experiences on par with today's top development companies."

Avalon is best known for their series of off-road racing titles including such games as 4х4 Hummer and 4x4 UAZ. Avalon Style approaches the development of off-road driving games from the perspective of the real-life sport. What will set it apart from other contemporary four-wheel driving games will be the presence of trial-based races in which players will use problem-solving skills to traverse gaping mud puddles and scale massive heaps of rocks using winches, car jacks, air compressors, differential locks, and more. Avalon Style developed and extensively tested this innovative gameplay mechanic in previous installments of the series, and expects the technologies within Unreal Engine 3 to help achieve an immersive racing experience.

About 1C Company

1C Company specializes in distribution, publishing and development of business, entertainment and educational software. Founded in 1991, 1C has become the largest publisher and distributor of computer and video 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 series 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 including titles like King of the Road, Space Rangers, Soldiers: Heroes of World War II, Perimeter, Fantasy Wars, Death to Spies, King’s Bounty.

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

The statements contained in this release that are not historical facts are “forward-looking statements. The Company cautions readers of this press release that a number of important factors could cause the 1C Company’s actual future results to differ materially from those expressed in any such forward-looking statements. 1C Company and 1C logo are registered trademarks of the 1C Company. All other company names mentioned herein may be trademarks of their respective owners.

Copyright  2008 1C Company. All Rights Reserved.

Press Contacts:

Anatoly Subbotin Anna Sheglova Darryl Still

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