1C: Ino-Co starts development of 2 new projects

MOSCOW, Russia - December 20, 2007 - 1C Company, the leading Eastern and Central European publisher, officially announced today that it has completed a deal to purchase one of the most famous Russian developers, Ino-Co. Ino-Co is creator behind the award-winning Star Wolves and Fantasy Wars. With this purchase 1C has increased its number of internal studios and recruited a team of highly experienced professionals.

1C Company is currently one of the largest publishers in the world by volume and areas served, this deal is the next step in strengthening 1C's position as a leading publisher, developer and distributor. 1C: Ino-Co (the official new company name) is working on the sequel to Fantasy Wars called Elven Legacy. This game is scheduled for a 2008 release. 1C: Ino-Co has also started working on two undisclosed projects based on world class IPs.

1C: Ino-Co recently released Fantasy Wars for the PC. Fantasy Wars combines both classic turn-based strategy gameplay and modern 3D graphics so players can experience epic battles like never before. 1C is currently running a tournament for Fantasy Wars where players can win a custom painted PC case. More information on the game and its new tournament can be found at http://fantasywars.1cpublishing.eu.

Best regards,

Anna Sheglova

PR Manager

1C Company

tel.: + 7 (495) 258-44-08, +7 (495) 688-89-29

fax: +7 (495) 681-78-08

e-mail: asch@1c.ru

www.1cpublishing.com