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New multi-territory initiative - to expand 1C brand and titles

Moscow, Russia - March 20, 2008 - 1C Company and GDL announced today an agreement that will see GDL bring previously unreleased and back catalogue 1C titles to specific retail markets.

Under the multi-territory agreement, GDL will be responsible for the distribution of 1C budget and mid price PC titles, promoting them under the new "Underground" brand name incorporating its Red-Gold product line imagery. The brand will however retain all the original 1C product names and 1C Company branding. GDL will also, where appropriate, utilise other branding attributes to suit individual territory dynamics.

Commenting on the agreement, Graeme Nicholas, Managing Director of GDL, said "I am immensely proud that 1C has chosen GDL as a partner. I have known the corporation and the companies it has purchased for many years, and I hold them in high regard. I consider 1C affectionately as an industry sleeping giant, known for its massive Eastern European influence and presence, but a very shrewd corporation that people should respect, as their global plans and strategies unfold.

For GDL to work with 1C, and be part of their future plans, I consider a privilege, and we look forward to growing the company's brand and titles across the territories.

The company's titles are beautifully produced, visually attractive and deploy excellent gaming technologies that we consider within their sector as being ahead of many of their Western European title peers. This is a chance for the consumer to enjoy new gaming titles, within the budget and mid price sector, rather than just previous titles that have come down from full price. With Strategy, Action, RPG, Simulation and Children's titles there is something for everyone, and titles such as Korea - Forgotten Conflict are simply stunning in their detail."

On strategy Nicholas commented "at GDL we have already shipped 2-3 million of games in our current financial year and leveraging off this success GDL's goal for 1C is very simply - that is, by taking an aggressive commercial stance at various levels, we want retail and its consumers in the territories, whether the United Kingdom or South Africa, to recognise and respect the 1C brand as a serious gaming participant. To achieve this we have a multi phase strategy, being that our first phase is to release 12 titles on April 1st 2008 across the territories, and to move to phase two which will be a further release of 12 titles. Further titles will come, and if everyone knew the depth and size of 1C's product catalogue I think they would be blown away. We will also deploy Eastern European themed display units that are visually stunning and this will capture the consumers' attention in store and further reinforce brand and titles. My final message, albeit maybe a bit flippant I guess is "watch out - the Russians are coming."

Darryl Still, International Marketing Director for 1C, commented "1C has an extensive catalogue of quality titles released in Eastern Europe, but never outside of those territories. One of our key challenges was to find a publishing partner who would recognise the potential of those titles and think outside of the box to use unconventional routes to market, if you like, but routes that would give the titles a presence and visibility that they would not receive from normal accepted "conventional" strategy. GDL have displayed an initiative and creativity in their approach that was exactly what the doctor ordered, we are delighted with their innovation and drive."

Peter King, Managing Director for 1C, commented "the appointment of GDL is part of a broader plan to grow the Worldwide presence of 1C as a corporation and its titles. GDL has demonstrated a "get it done" attitude that has synergy with ours. The initial reaction and order for the range from UK and other key territories has been very impressive and we look forward to a long and happy relationship."

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