Cryptologic Announces Third Quarter Results

5 November 1998

CryptoLogic Inc., a developer on online wagering software, announced its third quarter results on October 27.

Total revenue for the quarter ended September 30th, 1998 totaled $7.77 million, an increase of $1.85 million or 31% over the same period last year. Net earnings for the quarter totaled $5.88 million, an increase of $1.86 million or 46% over the same period last year. As a result, earnings per share in the third quarter of 1998 were $0.69 compared to $0.55 in the third quarter of 1997. On a fully diluted basis, earnings per share were $0.39 for the third quarter of 1998, compared to $0.25 for the third quarter of 1997.

Net earnings for the nine months ended September 30, 1998 totaled $16.86 million, compared to $7.47 million in 1997, an increase of $9.39 million or 126%. For the nine months, earnings per share were $2.01, and $1.12 on a fully diluted basis compared to $1.13 and $0.49 fully diluted in the third quarter of 1997. At the end of the third quarter, CryptoLogic's cash reserves, including restricted cash totaled $27.73 million.

During the third quarter, CryptoLogic released Version 3.0 of its Internet gaming software. The new software has many new features including multi-player games, a 3D panoramic environment, chat functionality that allows the players to communicate with each other while playing, as well as the ability for players to browse the Internet while they play. This new software ensures that licensees will continue to offer the best gaming software on the Internet, and enables CryptoLogic to continue to lead this market.

CryptoLogic is in the business of software development and management that permits the processing of Internet based transactions. Its current focus is on electronic commerce and Internet gaming software.

CryptoLogic's common shares trade on the Toronto Stock Exchange under the symbol CRY. There are currently 8.5 million common shares outstanding (15.4 million shares fully diluted).

3rd Quarter 1998 3rd Quarter 1997
Gross revenue $7.77M $5.92M
Net earnings $5.88M $4.02M
Earnings per share $0.69 $0.55
Fully diluted earnings per share $0.39 $0.25

For further information please contact: Jenny Solursh Vice President, Marketing & Communications (416) 545-1455 or e-mail jsolursh@cryptologic.com.