euro adhoc: JoWooD Productions Software AG / Annual Reports / JoWooD Productiosn Software Inc. presents the result for the first half-year 2008

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6-month report

29.08.2008

• Revenues in the first half year increased by 8% to EUR 12,3 million
compared to last year
• Results exceeded corporate planning
• Strongest titles will be released in the second half year of 2008

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In EUR 000s

H1 2008 H1 2007 changes in %

Revenues 12.305 | 11.362| +8%
EBT 1.025 | 1.254| -18%

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JoWooD Productions Software Inc. has increased its revenues for the
first half year 2008 by 8% to EUR 12,3 million compared to last
year´s reference period (EUR 11,36 million). Revenues and EBT
exceeded corporate planning, despite flattening of revenues caused by
the typical industry cycle and the particular rearrangement of
releases in the second quarter.

This result undermines the management´s forecast of 20% growth in FY
2008. The release pipeline of the second half-year 2008 substantiates
this estimate.

The first half year 2008 was designated to the adjustment of the
distribution model and the consequent, structural changes of the
company. Based on the ongoing adjustment, management of the company
decided to push some of the releases (even finished projects) into
the second half year 2008 out of strategic reasons, in order to
execute the roll-out over the more profit-yielding and profitable
(direct) distribution structure.

Despite the adjustment and reallocation of various game titles, the
company generated an increase of revenues attributable to increased
distribution efficiency in established markets and exceeded corporate
planning for the second quarter 2008.

Revenues in the second quarter have been increased by 8.6% to EUR
5.707 million over last year´s reference period. As per June 30th,
EBT amounts to EUR 175.000. Because of scheduled one-off payments in
relation to the setup of the direct distribution structure, the EBT
is lower than in previous year´s reference period (EUR 389.000).

In the course of market strategic measurements, the Spanish and
Portuguese market has been opened up, and preparations for the
tapping of the Mexican (as a consequence also the Central - and South
American) market have been made. According to Management, first
impacts are expected to have effect on the third and fourth quarterly
results of FY 2008 already.

Clear objective of the distribution strategy is the preparation of
the company for the releases of its most successful brands in the
second half year 2008, FY 2009, and FY 2010. As for the upcoming
second half year, the following titles are in the pipeline: Gothic 3:
Forsaken Gods PC, The Guild 2: Venice PC, Hardy Boys PC, Agatha
Christie: Evil Under The Sun Wii™, Music Monstar DS™, and Inkheart
DS™.

From a product strategic point of view third party products will be
acquired group-wide along with the own product portfolio. Third party
products are complementary products to the own publishing portfolio
of the company i.e. products of developers and publishers with the
intention of selling their products through the widespread
distribution network of JoWooD Productions Software Inc. The emphasis
of these third party products is put on the genre of kids & family
and casual games, with a platform orientated focus on Nintendo® DS™
and Nintendo® Wii™. In addition to above mentioned titles, the
following games will be published in this area in the second
half-year: Pet Pals Wii™, Australia Zoo DS™, Driver Ed DS™,
Safecracker Wii™, Life Signs DS™, Paint by DS™, Paint Military
Vehicles by DS™, Aquarium by DS™, Crossword challenge by DS™ etc.

Furthermore, the company takes an innovative approach in the
outsourcing of development and programming services. The Indian
development studio Trine Games has been assigned with the development
and programming of Gothic 3: Forsaken Gods and The Guild 2: Venice.
The strategic background to this step is the convincing quality
(technical- as well as staff-wise), and the very attractive cost
structure. Trine Games will be presented in a dedicated news-special
in September 2008.

NINTENDO DS, Wii AND THE Wii LOGO ARE TRADEMARKS OF NINTENDO.

end of announcement euro adhoc
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ots Originaltext: JoWooD Productions Software AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

JoWooD Productions Software AG

Dr. Albert Seidl, Vorstand

Mag. Philipp Brock, Investor Relations

Tel.: +43 (0)3612 2828

mailo:investor@jowood.com

http://www.jowood.com

Branche: Software
ISIN: AT0000747357
WKN: 935221
Index: WBI, ATX Prime, ViDX
Börsen: Börse Berlin / free trade
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