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CRYPTIC STUDIOS™ ANNOUNCES SALE OF CITY OF HEROES® & CITY OF VILLAINS®

Los Gatos, Calif. - November 6, 2007 - Cryptic Studios announced today that the development house has sold its intellectual and proprietary rights to both the City of Heroes and City of Villains franchises to publisher NCsoft. As part of the agreement, NCsoft is licensing Cryptic's engine technologies for use with future games.

"City of Heroes and City of Villains players should be assured that Cryptic Studios will be working closely with NCsoft to ensure a smooth, seamless transition," said Michael Lewis, President and co-founder of Cryptic Studios. "City of Heroes was Cryptic's flagship product and we are proud of this title and the many millions of characters that have entertained over a million people worldwide. The decision to sell the franchise allows us to focus resources on our soon to be announced first-party projects."

For more information about Cryptic Studios please visit www.crypticstudios.com

About Cryptic Studios:

Established in July 2000, Cryptic Studios, Inc. is an independent, employee-owned developer of massively multiplayer online games for the PC and next generation consoles. In April 2004 Cryptic launched its first MMO title, City of Heroes, which received top accolades in the industry, including E3's "Best of Show" and multiple "Game of the Year" awards. In the City of Heroes visually stunning, 3-D graphical world, thousands of players create unique super-powered heroes and embark on immersive adventures, battling villains and executing special missions as they build a dynamic online community. City of Villains, the stand-alone sequel, launched in October 2006.

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