FINANCIAL HIGHLIGHTS
                  (in millions of US$, except per share disclosure)
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For the three months ended March 31,                  2001    2000
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Revenue                                              $10.9    $8.2
Interest income                                       $0.8    $0.7
Net income                                            $5.2    $4.2
Earnings per share                                   $0.37   $0.38
Fully diluted EPS                                    $0.34   $0.27
Weighted average number of common shares              14.0    10.9
Weighted average fully diluted number of shares       15.3    15.3
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                         CRYPTOLOGIC INC.
                 CONSOLIDATED STATEMENTS OF INCOME
                           (unaudited)

In thousands of U.S. dollars, except per share information
                                       Three Months Ended March 31
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                                                     2001     2000
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Revenue                                           $10,865   $8,251
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Expenses:
Software development and support                    4,963    3,601
General and administrative                            783      652
Finance                                                75       25
Amortization                                           63       37
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                                                    5,884    4,315
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Income from operations                              4,981    3,936
Interest income                                       790      675
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Income before income taxes                          5,771    4,611
Income taxes                                          589      460
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Net income                                          5,182    4,151
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Basic earnings per share                            $0.37    $0.38
Fully diluted earnings per share                    $0.34    $0.27

Basic weighted average common shares               14,038   10,868
Fully diluted weighted average common shares       15,252   15,321



                         CRYPTOLOGIC INC.
                   CONSOLIDATED BALANCE SHEETS
                  As at March 31, 2001 and 2000
                            (unaudited)

In thousands of U.S. dollars                           March 31
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                                                    2001      2000
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ASSETS
Current assets
  Cash and cash equivalents                      $46,664   $42,343
  Restricted cash                                 14,500    10,500
  Reserves with credit card processor              1,423       985
  Accounts receivable                                456       472
  Prepaid expenses and other                       1,219       550
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                                                  64,262    54,850
Investments                                        2,351     1,080
Capital assets                                       841       624
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                                                 $67,454   $56,554
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
  Accounts payable                                $1,538    $1,912
  Accrued liabilities                              1,083       808
  Income taxes payable                               627     1,186
  Funds held on deposit                            2,209     1,185
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                                                   5,457     5,091
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Shareholders' equity
  Capital stock                                    6,858     5,137
  Retained earnings                               55,139    46,326
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                                                  61,997    51,463
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                                                 $67,454   $56,554
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                         CRYPTOLOGIC INC.
    CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
        For the three months ended March 31, 2001 and 2000
                            (Unaudited)

In thousands of U.S. dollars    For the three months ended March 31
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                                       2001              2000
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                               Number     Stated  Number     Stated
                              of shares   value  of shares   value
                                (000's)            (000's)

Common shares:
  Balance, beginning of period   14,079   $6,455    8,974    $3,643
  Repurchase of shares             (119)     (40)      --        --
  Exercise of stock options          87      420      126       745
  Exercise of Class A purchase
   warrant                           --       --    2,100       727
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                                 14,047    6,835   11,200     5,115
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Series C warrants:
  Balance, beginning and
   end of period                    160       22      160        22
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Total capital stock              14,207    6,857   11,360     5,137
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Retained earnings, beginning of period    51,133             42,175
Net income                                 5,182              4,151
Excess of repurchase price of common
 shares over stated value                 (1,175)                --
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                                          55,140             46,326
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Total shareholders' equity               $61,997            $51,463
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                         CRYPTOLOGIC INC.
               CONSOLIDATED STATEMENTS OF CASH FLOWS
        For the three months ended March 31, 2001 and 2000
                           (unaudited)

In thousands of U.S. dollars                        2001      2000
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Cash flows from (used in) operating activities:
Income                                            $5,182    $4,151
Amortization adjustment to reconcile
 income to cash flows                                 63        37
Changes in operating assets and liabilities:
  Restricted cash                                   (500)   (5,460)
  Reserves with credit card processor              (206)     (354)
  Accounts receivable                                979      (174)
  Prepaid expenses and other                        (380)      470
  Accounts payable                                  (616)      350
  Accrued liabilities                                207       518
  Income taxes payable                               625       408
  Funds held on deposit                              395        93
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                                                   5,749        39
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Cash flows from financing activities
Issue of capital stock                               420     1,472
Repurchase of common shares                       (1,215)       --
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                                                    (795)    1,472
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Cash flows from investing activities
Additions to capital assets                          (65)     (145)
Investment in dot com Entertainment                 (921)       --
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                                                    (986)     (145)
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Increase in cash and cash equivalents              3,968     1,366
Cash and cash equivalents, beginning of period    42,696    40,977
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Cash and cash equivalents, end of period         $46,664   $42,343
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