Distributing casual games together with Alawar Entertainment

3

If you would like to increase the audience •for your games by more than 100 million people…If you want to earn additional profit from the •fastest-growing market for casual games in the world…If you need a reliable partner for distributing •your casual games in Europe…

Then partner with Alawar Entertainment, a leading distributor of casual games on the European market!

4 5

Advantages of working with Alawar Entertainment

1. Experience and technologyAlawar Entertainment is the largest distributor of casual games in Eastern Europe, having established local markets in Russia, Poland, Ukraine and other countries.

10 years on the market•A collection of over 500 games•More 100 game localizations •yearlyMore than 50 million game •downloads through the Alawar distribution network in 2009Detailed reports•Proprietary technologies, •including Digital Rights Management, Content Delivery Network and an Affiliate Program

A collection of over 500

games

2. Proprietary distribution channels Alawar Entertainment sells games through its own network of Web sites, including the largest casual content sales sites in several countries.

Alawar.com•Alawar.ru•Alawar.ua•Alawar.pl•Alawar.co.il•Alawarspiele.de•Plus more than 500 sites in •eight European countries through the company’s affiliate program

3. Knowledge of the marketAlawar Entertainment continually studies the audience for casual games, analyzes the market and investigates new ways to move the industry forward.

For example: The most popular genre •of casual games among Russian Internet users is the puzzle and logic category (57% ofthose surveyed). The peak download time for •casual games on the Russian Internet is Friday nights at 9:00 p.m.More than 1 million •games are downloaded in Poland every month from Alawar-supported sites.SMS-based Alawar game •payment is available in 39 countries.

6 7

Russian casual games market volume

2006 2007 2008 2009* 2010*

50

40

30

20

10

0

1,8

10

26

32

42

mln

. US

D

2006–2008 figures by iKS-Consulting2009–2010 figures estimated by Alawar Entertainment

Learn more about the Russian casual gaming market!

In 2004, Alawar Entertainment became one of the first companies to start selling casual games on the Russian market. Considerable work has been done since then to popularize this type of content and create effective distribution channels and payment methods. Today, almost half of Russia’s computer users play casual games.

Selling casual games on the Russian market

8 000 000

7 000 000

6 000 000

5 000 000

4 000 000

3 000 000

2 000 000

1 000 000

0

copi

es

2006

600 000

1 500 000

3 700 000

5 300 000

7 000 000

2007 2008 2009* 2010*

8 9Game sale income allocation

Mobile connection operator +SMS aggregator+taxes

Partner payments Alawar+developer/publisher

40 RUR.

100 RUR.

40 RUR.

The average price for a casual game on the Russian market when paying via SMS is 180 RUR (about $6).

Purchasing casual games on the Russian market

Payment types, 2009

The main way people purchase casual games is via SMS micropayments

1%

1%

1%0,45%

0,55%

SMS payment Bank cards Yandex.Money WebMoney Bank transfer other

97%

10 11Bestselling non-Alawar games on the Russian market (January 2010)

# TitleDeveloper Publisher

Release date:

Alawar note:

1 Papa’s Daughters HeroCraft 12/03/09 Distribution in Russia

2 Gardenscapes Playrix 11/12/09 Distribution in Russia

3Adventures of Robinson Crusoe

Magicindie Softworks

12/23/09Localization and distribution in Russia

4 Ocean Range James Software

09/17/08 Exclusive distribution in Russia

5 Dream ChroniclesPlayfirst Soggy Melon

01/02/10 Distribution in Russia

6Mystery Case Files: Ravenhearst

BFG 01/14/10Release preparation and distribution in Russia

7 Nanny ManiaGogii Games Opal Games

12/26/09 Distribution in Russia

8 Cake Shop 2 EleFun 11/16/09 Distribution in Russia

9 Youda Farmer Youda 10/10/09Localization and exclusive distribution in Russia

10Build-A-Lot 2: Town of the Year

HipSoft 12/05/08Localization and exclusive distribution in Russia

14 – 19 years old 20 – 29 years old 30 – 39 years old

males females

Casual game consumers on the Russian market

Russian target audience

According to research by TOY-Opinion, commissioned by Alawar Entertainment and conducted in March 2009, people play casual games for the following reasons: they want rest (46%); they see them as a good way to spend their leisure time (32%); and they want a break from their routine (29%). Over 91% of the participants said they prefer playing casual games at home.

Gender: femaleAge: 20-39Education: college or another form of higher educationOccupation: employees Civil status: marriedCar: yesNumber of computers: one per family

The category of women over 40 is worth mentioning, as it includes the most active consumers of casual games.

50%

70%

30%

14% 35%

5% 6%

40 – 49 years old 50 years old and above

12 13Five internally-owned development studios are a part of Alawar:

Many of Alawar’s games have received worldwide acclaim and become bestsellers in many countries:

About the company

Founded in 1999, Alawar Entertainment specializes in the development, publication and distribution of casual games, reaching audiences in over 60 countries worldwide. The company is the leading distributor of casual titles in Eastern Europe and

has published more than 200 casual PC games globally, including some of the industry’s leading downloadable series like Farm Frenzy®, Craze® and The Treasures of Montezuma®. Alawar recently extended its offerings onto the iPhone®, PLAYSTATION®3, Nintendo DS® and Mac® gaming platforms, and in 2010 plans to enter the social games and MMO markets as well as expand onto other leading-edge platforms. For more information, visit www.alawar.com.Today, consumers in more than 60 countries can purchase Alawar’s games through leading online portals, distribution networks and retail outlets. Moreover, the company is the leading distributor of casual games in Eastern Europe, where more than 2,000 Web sites and major portals use Alawar’s turnkey affiliate program to acquire a game catalog and earn additional revenue.

For more information, visit www.alawar.com.

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14Alawar’s games have been localized into the following languages:

The platforms on which Alawar’s games are published:

Our distribution partners:

Chinese Czech English French Hebrew Italian

German Japanese Korean Russian Spanish

+ 9 other languages

...and many others

Publishing games through Alawar:Kirill PlotnikovVice President of PublishingE-mail: authors@alawar.com

Game aqusition (Russia, Poland, Sweden, Finland, Czech Republic, Israel):Anastasia YurkinaAqusition managerE-mail: yurkina@alawar.com

For more information:Tatiana Chernova, Director of Marketing communications and PRE-mail: pr@alawar.com

Mailing addresses and phone numbers:In the U.S.:901 N. Pitt Street, Ste. 325Alexandria, VA 22314,USATel.: + 1 615 785 7472Fax: + 1 309 413 6859

In Russia:Russkaya-41,Novosibirsk 630058,RussiaTel/fax: + 7 383 332 81 33

Contacts: