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Funcom awarded grant from Norwegian Film Fund

- The 'Longest Journey' saga continues in episodic format -

Durham, USA - March 1, 2007 - Funcom announces that the Norwegian Film Fund has awarded Funcom a grant which will partially finance research and initial development of 'Dreamfall Chapters'. The grant enables Funcom to establish a core technology team which will research online-only delivery methods of episodic content, as well as lay the foundation for a later pre-production phase of 'Dreamfall Chapters'.

The online-only business model is a natural evolution of Funcom's strategy. Through the research Funcom also aims to find new ways of expanding the brand value of 'The Longest Journey', while reducing the chance of piracy. As Funcom seeks to further strengthen an already established IP, the potential for a future 'The Longest Journey' MMO increases.

"We will be researching an online-only continuation of the epic 'Longest Journey' saga, and we very much look forward to develop new chapters to the Dreamfall gaming community," said Trond Arne Aas, CEO of Funcom. "To see the Norwegian government take such an active role in nurturing the local game development industry is impressive. In return for their trust we aim to deliver a modern adventure game with unique qualities."

The grant is part of the Norwegian government's active endorsement of the Norwegian game development industry. Since the inception of the program in 2004 the government has supported a wide range of games, including 'Dreamfall: The Longest Journey'. Funcom naturally welcomes the continued cultural acceptance of computer games as a medium comparable to film and television. With the aid of the program fans can now look forward to new online chapters in one of the most popular adventure sagas of all time.

Each new installment of 'Dreamfall Chapters' will initially be delivered as online-only content, but there may be retail releases with combined chapters, both for console and PC, at a later stage.

Funcom will not release any additional information about 'Dreamfall Chapters' for the time being.

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ABOUT "DREAMFALL CHAPTERS" - 'Dreamfall Chapters' begins right where the critically acclaimed and award-winning 'Dreamfall: The Longest Journey' ended, continuing the epic saga of the twin worlds of science and magic in a brand new format. Through thrilling episodes, players will embark on an amazing and exciting journey through worlds both familiar and fresh to meet fascinating and surprising characters, explore beautiful locations, experience a deep and intriguing storyline - described by critics as one of the best stories ever written for a game - and enjoy uniquely varied modern adventure gameplay in a whole new way. And at the end of the road waits the greatest mystery of them all - one that will bring the groundbreaking saga to a surprising and stunning conclusion.

ABOUT FUNCOM - Funcom is an independent developer and publisher of online games for PC, consoles and mobile platforms. Funcom has provided outstanding entertainment since 1993 and continues to expand its track-record of more than twenty released games. Recent successes include 'The Longest Journey', 'Anarchy Online' and 'Dreamfall: The Longest Journey'. For corporate information please visit www.funcom.com. For information about Funcom games visit www.anarchy-online.com , www.dreamfall.com or www.ageofconan.com . Funcom is listed on the Oslo Stock Exchange under the ticker FUNCOM.

ABOUT NORWEGIAN FILM FUND- Established in 2001 as a civil executive body under the auspices of the Royal Ministry for Cultural Affairs, the Norwegian Film Fund is charged with administering all national support for film production in Norway. 2004 marked the entry of computer games as a media which is entitled to grants by the Norwegian Film Fund. The support mechanisms have as their purpose to secure a qualitative and diverse supply of Norwegian audiovisual products. For more information visit www.filmfondet.no/iCM.aspx?PageId=118

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