The immense potential of Asian gaming market

Acknowledging the immense potential of Chinese market, CryptoLogic Inc., one of the most important software providers to the worldwide Internet gaming industry, has signed a Memorandum of Understanding with Brilliance Technology Co. and 568 Network Inc. in order to expand and exploit the high growth and high potential of Chinese gaming market, including China, Macau, Taiwan and Hong Kong.

The three corporations will mutually create a new company in China to adjust CryptoLogic's online casino and poker games to the Chinese market and design new poker and casual, skill games that are more common to Chinese gamblers. Brilliance wants to develop and offer the games in two versions: "play-for-fun" subscriptions for players in internet cafés and on mobile devices, and "play-for-money" throughout Webs licensed by China Welfare Lottery, the nation's gaming licensing power.

Initially Cryptologic will invest only a small amount of capital in the new company, with the possibility to enlarge its investment to a controlling position. Cryptologic will have the power to employ all members of the fresh corporation. No economic conditions were revealed.

Lewis Rose, the president and CEO of CryptoLogic, stated that this project is the first important move in implementing one of their keystone plans: to develop in Asia, an important growing market for CryptoLogic. This project updates the Chinese market with significant game development and IT knowledge exclusively created for the Asian gaming market.

Brilliance is a software provider and systems integrator in China, with products that have been honored with diverse levels of certification by Chinese state societies.

Mr. Li Fu Hua, Chairman of Brilliance Technology Co stated that there is an impressive demand and desire for online gaming throughout Asia and CryptoLogic is the suitable group to enter in the Chinese market promptly, profoundly and legally. The online games offer will adequately complement Brilliance’s banking, payment processing and networking solutions that are already broadly used all over China.

It is already a clear fact that Asia is rapidly becoming the next major geographic region for online gaming. Industry specialists anticipate that Asia will be the fastest growing and in the end the major online gaming market in the world. China alone has over 135 million Internet users, the planet's second biggest user group after the United States.

As well, China has the largest mobile phone market with about 400 million users, many of whom are anticipated to switch to the high-speed 3G networks over the next few years, creating the opportunity for explosive growth for game and content developers. Brilliance intends to use its relationships with the major service providers to license the new company's casual game content to their subscribers.

Shailesh Naik, Managing Director of CryptoLogic Asia-Pacific said that they recognized the fact that Asia's e-gaming market has a huge potential, and, knowing that the company rapidly established a strong position here.

Game568 is a game provider that already designs games for Chinese market, from card games like "Fight Landlord" and "Za Jin Hua", to skill games like "Lian Lian Kaan" and "Dragon Ball". Headquartered in Markham, Ontario, Canada, Game 568 has a license from China Welfare Lottery, and has a record of more than one million registered players in its gateways.

William Cheng, Vice-President-China Operations for Game 568 mentioned the fact that their software production knowledge in Shanghai and their existing Asian game roster, mixed with Brilliance's IT leadership position in China and CryptoLogic's supreme casino and poker game collection will guarantee their leading position in Asia's online gaming market.