PARIS – Oct. 28, 2004 – Gameloft posted consolidated sales of EUR 5.5 million for the third quarter of fiscal year 2004, up by 108% over the previous year. For the first nine months of 2004, sales amounted to EUR 14.2 million, representing a 141% increase.

The wireless gaming business generated 93% of the revenues for the first nine months of the year and increased by 176% compared to the same period in 2003. Gameloft notably increased its market share in the United States, in a particularly dynamic environment. Internet sales accounted for 7% of total turnover, up by 57%.

With 11 new games on the market, 41 new agreements signed with telecom operators since the beginning of the year and the rapid penetration of Java and Brew technologies on mobile phones, the company was able to continue its strong growth and to confirm the good performance it recorded in the first half of the year. The upcoming release of showcase products such as "Vijay Singh Pro Golf 2005", "Vans Skate & Slam", "Asphalt Urban GT" and "Prince Of Persia: Warrior Within" enables the company to envisage a good fourth quarter.

To strengthen the company's financial structure, a proposal to convert Gameloft's financial debt into shares will be made at the next general meeting to be held on 16 November. This operation, which should lead to a dilution of less than 3%, will increase the company's shareholders equity from 2 million euros to 5.9 million euros and will reduce the financial debt from 3.9 million euros to zero.

The majority shareholders are thus renewing their trust in the company and are giving it the resources it needs to continue its rapid growth over the coming years and to aim for a leading position in the wireless gaming industry in 2007, when this market will reach one billion potential customers.

Revenues (in mEuros) 2004 2003 Variation
1st quarter 4.0 1.2 + 249%
2nd quarter 4.7 2.1 + 123%
3rd quarter 5.5 2.6 + 108%
Total, nine months 14.2 5.9 + 141%