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Excite is Frogster's partner in Japan

Important milestone

Berlin -- Nov. 9, 2007 -- Frogster Interactive Pictures AG, publisher of Massively Multiplayer Online Games (MMOGs) and the only European exhibitor at the most important MMO Games show' Gstar, currently taking place in Seoul, has released details in Japan on the sublicense sale of its key title' The Chronicles of Spellborn. With the Japanese partnership in hand, Excite Japan Co. Ltd., one of the top five largest Internet portals with more than 16 million registered users and more than 40 million page views per day, and Frogster look forward to make TCoS an important asset of Excite's business.

For the exclusive MMO marketing rights in Japan, Excite pays a non-recoupable advance license of $1.2 million USD and a significant percentage of running gross profit plus additional bonus on all revenues exceeding a hurdle of almost $20 million USD with the product. Excite expects to draw at least 100,000 TCoS players in Japan and a monthly revenue of $1.5 million USD on a conservative estimation. This would bring Frogster Studios' yearly revenue of roughly 4 to 5 million USD from Japan alone. Alongside the Japanese rights, Frogster Studios owns the license for China, Korea and other Asian countries. Frogster Interactive holds a 50 percent stake of Frogster Studios. On a consolidated group level, Frogster Interactive expects at least $100,000 USD gross profit per month from Japan alone, if the expectations are met.

Game experts from Excite have intensively tested TCoS in the run-up to the contract closing. According to the CEO of Frogster Studios the license deal is one of the largest closings for a single product for the territory of Japan in the history of PC games. Frogster interprets this as a milestone on its way to become a leading European provider of client-based 3D-MMOs and virtual worlds. They next plan to sale the sublicense in China, where Frogster expects an even higher advance license due to the market size. In Frogster's view, the Japanese contract with Excite raises the chances for a good closing in China and the value of the 50 percent stake of Frogster Interactive in Frogster Studios significantly.

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