cdv Software Entertainment AG Continues Strategic Growth, Entering French Market

Bruchsal, Germany, January 14, 2008 - Continuing its successful expansion efforts, leading full-service interactive entertainment industry service provider, cdv Software Entertainment AG, today announced the acquisition of a 75% majority share of cdv Madrics Media S.A.S, a newly-founded firm, with options to acquire additional shares. Effective December 31, 2007, French-based cdv Madrics Media S.A.S. has successfully acquired all business operations of the highly successful Madrics Media France As part of the rapidly growing cdv Group; this newly acquired firm will be responsible for the marketing and distribution of games-related software and hardware, as well as accessories for France and the Benelux.

With this acquisition, cdv Software Entertainment AG is able to offer immediate access to another key European market, continuing its execution of strategic plans towards becoming a comprehensive, full-service distribution network for all of Europe and North America. cdv Madrics Media S.A.S. maintains excellent relationships with key retailers and partners in France and the Benelux, and is considered a leading distributor in the French-language interactive entertainment market. After additional recent acquisitions yielded significant expansion in Austria and Eastern Europe, the acquisition of this French firm represents a further step toward cdv's ability to successfully offer services within the Pan European, US and Canadian markets.

"The synergy and the complimentary product and service portfolios of the two firms will allow the cdv Group to significant expand its presence and market share in the European interactive entertainment segment, as well as bolster the organization's credibility as the leading, independent full-service provider," said Christian Gloe, cdv Software Entertainment AG's CEO. "This is a significant milestone for cdv Software Entertainment AG, and we are making excellent progress towards our stated goal of expanding our existing business segments, as well as entering new and complimentary areas of focus."

"We are excited to be working with cdv Software Entertainment AG, and likewise the opportunities that this presents for us, our customers and our partners," said cdv Madrics Media S.A.S.'s President, Michaela Steidel. "cdv Madrics Media S.A.S. will now be able to offer its customers an even more comprehensive product portfolio - including a full assortment of already well-established hardware, and a selection of top-notch software titles. We are confident that this will permit us to significantly strengthen our market share and position in France and the Benelux."

About cdv Software Entertainment AG

cdv Software Entertainment AG is the only publicly traded, independent full service provider for the games sector in Germany. As a leading sales and service partner for the entire games and software industry, cdv is excellently positioned on the global market thanks to branches focused on Germany, Switzerland and Austria (GSA), North America, Hungary, the Czech Republic and Slovakia as well as noted international partners. Alongside its strong product placement and international distribution logistics, cdv offers its customers a wide range of sales-promoting methods and an extensive, professional marketing and promotion service from a single source. The company, which was founded in 1989 and is headquartered in Bruchsal, Germany, has been on a steady growth course since its 2007 consolidation and is aiming in the medium term for a strong market position as one of the globally leading full service providers in the games sector. More information is available at http://www.cdv.de.

About cdv Software Entertainment USA

cdv Software Entertainment USA, a wholly owned subsidiary of cdv Software Entertainment AG, is a leading publisher of third-party video games and interactive entertainment with offices in New Jersey and headquarters in Cary, North Carolina. cdv Software Entertainment USA has published critically acclaimed and commercially successful titles including Divine Divinity, Blitzkrieg, American Conquest, Codename: Panzers, City Life, DarkStar One, War Front: Turning Point and the acclaimed Sherlock Holmes: The Awakened. The company will continue to expand its offerings with upcoming titles including the highly anticipated AGEOD's American Civil War: 1861-1865 - The Blue and The Gray, Pacific Storm Allies and Sudden Strike 3: Arms for Victory. For more information, please visit http://www.cdvus.com.

About Madrics Media GmbH

Headquartered in Muehlhausen, Germany, Madrics Media GbmH is a leading supplier and manufacturer of accessories for all current video game consoles. Founded in 2000, Madrics Media GmbH operates its own manufacturing facility in China.

For more information, please contact:

Mario Kroll, CDV Software Entertainment USA, mario.kroll@cdvus.com, at (919) 386-3475.