Glu Mobile's Greg Ballard

The acquisition of iFone has strengthened Glu's position in the market both in the Americas and in Europe. The addition of iFone's sales and marketing capabilities in Europe has boosted our existing operations in that region. We've also added highly sought-after titles, like Sonic the Hedgehog, Monopoly and Atari Classics, to our portfolio. We're especially proud of the immediate benefits we've seen by focusing our deployment expertise on the new titles, expanding their availability to include a broader, global consumer base, and increasing their profitability.

The integration is going extremely well. We've been able to take some of the iFone titles and, with fairly little time and resources, dramatically expand deployment. For example, we saw huge potential for Monopoly. Just after the acquisition, we quickly launched 56 re-engineered builds in the US covering major new handsets and giving the title enhanced deck placement on Cingular. As a result, Monopoly moved from no. 22 to the top five on Cingular and sales have increased nearly 300 percent since March.

We've been focused on quality from the beginning, and year after year our titles continue to win awards for excellence. Just recently we did an analysis of IGN reviews among top publishers for 2006, and our games have the highest average score in the industry, which we take as a great endorsement of our development capabilities. Also, the quality of our games continually improves as handset technology advances and we discover new ways to exploit the full capabilities of mobile phones. Carriers have also played an increasing role in setting standards for quality through more stringent evaluation processes intended to weed out poor quality titles.

Yes we are. The iFone acquisition combined with the growing traction Glu has had over the past year worked to solidify our position in the top 3 publishers worldwide, and clearly established us as the leading independent mobile publisher globally. Our growth is strong. Gameloft reported that their growth q2 2006 over q2 2005 was an impressive 50 percent, and we actually grew significantly faster than that, so we feel really good about our current position as well as our potential.

We are very respectful of the great job that Jamdat has done. However, we view EA Mobile's lead in the US primarily as a function of legacy titles, which will erode over time. The US is the only market in which EA Mobile is leading; Glu continues to out-sell EA Mobile in Europe, Asia and Latin America and we feel strongly that our position will penetrate to the US, making Glu the clear and unequivocal leader worldwide.

We have great respect for Enda and the work he did while at iFone, and we wish him all the best in his new venture.

Glu saw 70 percent growth Q2 2006 over Q2 2005, which can be attributed to titles for Java and Brew, so we definitely see tremendous growth opportunity for those platforms. However, we see opportunities with smartphone games and continue to evaluate those development platforms, especially as we see increases capabilities for over-air purchases. In May we announced a partnership with Microsoft in which we will develop and publish Project Gotham Racing for a variety of mobile platforms, including Microsoft Windows Mobile, so we are certainly keeping an eye on opportunities to develop and publish for smartphones.

We're focused on expanding our portfolio of great games. We have seven titles in our portfolio that have sold more than one million units, and we're focused on growing the number of million-unit sellers with the launch of new titles and expanded deployment in the 70 countries Glu games are currently available in, and bringing our games to those where were not.