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Glu Mobile Partners With Microsoft to Develop and Publish Mobile Edition of Project Gotham Racing®

No. 1 Action-Oriented Racing Franchise Brings Style to Mobile Games

SAN MATEO, Calif. - May 1, 2006 - Glu Mobile, a leading creator and global publisher of mobile entertainment, today announced an alliance with Microsoft (NASDAQ: MSFT) to develop and publish the mobile version of Project Gotham Racing® (PGR®), the franchise that set the gold standard for racing excellence on the Microsoft® Xbox® and Xbox 360 video game systems.

"The PGR franchise revolutionized the racing genre by rewarding gamers for driving with speed, style and daring," said Greg Ballard, chief executive officer, Glu Mobile. "Glu will create the definitive mobile racing experience by delivering this same exciting challenge optimized for the mobile platform."

"The Project Gotham Racing franchise is loved by millions worldwide, and we're excited to partner with Glu Mobile to give gamers a new platform to enjoy it on in the near future," said Edward Ventura, director of franchise development, Microsoft.

The critically acclaimed Project Gotham Racing series, known for its incredible roster of hot cars and unique kudos point system, is a top selling racing franchise on the Xbox video game system. PGR 3 is currently one of the most popular games on Xbox 360. The success of PGR stems from an innovative approach that proves it's not just about how fast you drive, but how you drive fast.

Project Gotham Racing for mobile will be available to consumers on major wireless carriers around the world in early 2007. It will be playable on a variety of mobile platforms, including Microsoft Windows Mobile®.

For more information, visit www.glu.com.

About Glu Mobile
Glu Mobile is a leading developer and global publisher of mobile entertainment. Glu's portfolio of games, ringtones, wallpapers and information applications include both original titles and entertainment based on major brands from Atari, Cartoon Network, Celador International, FOX Sports Interactive, Harrah's, Hasbro, PlayFirst, PopCap Games, Sega and Twentieth Century Fox. Based in San Mateo, California with offices in Hong Kong, London and Manchester, Glu is funded by top venture firms NEA, BA Venture Partners, Granite Global Ventures, Sienna Ventures and Globespan Capital Partners, and by Time Warner Investments. Recently Glu acquired the UK-based mobile entertainment company iFone, adding SONIC THE HEDGEHOG, MONOPOLY, and ATARI Classics to its portfolio. Consumers can find fresh entertainment created exclusively for their mobile phones wherever they see the 'g' character logo or at www.glu.com.

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GLU MOBILE, GLU, and the 'g' character logo are trademarks of Glu Mobile.
All other names and trademarks are trademarks or registered trademarks of
their respective owners.

Microsoft, PGR, Project Gotham Racing, Windows Mobile, Xbox, and Xbox 360 are either registered trademarks or trademarks of Microsoft Corporation in the U.S. and/or other countries.

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