Former Crypto C.E.O. Letter Elicits Pointed Response

23 December 2008

On Tuesday CryptoLogic Ltd. responded to criticism from the software developer’s former president and chief executive, Javaid Aziz, stating that many of the issues pointed out in his Dec. 4 letter to the company are already being addressed.

In addition, the Dublin company has declined Mr. Aziz’s request for two board seats. In a prepared statement, CryptoLogic said that the suggested board appointments are “not in the best interest” of the company or its shareholders and would “cause unwanted disruption at a crucial phase in CryptoLogic’s development.”

The company noted arrangements agreed by both parties prior to Mr. Aziz's departure, and reiterated that he is entitled to a payment of 1.5 million euros if CryptoLogic went through a change of control on or prior to April 30, 2009.

In today’s statement, CryptoLogic specified that this change of control, under the agreement terms, would include “any person (together with any person acting jointly or in concert with such person) acquiring more than 25 percent of the voting securities of CryptoLogic, or in certain circumstances a change in the composition of a majority of the board of directors of CryptoLogic over any 12 month period.”

To view a copy of the agreement between Game Pack, a CryptoLogic-owned joint venture and Elmore International Solutions Ltd., a corporation owned by Mr. Aziz, click here.

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