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					CRYPTOLOGIC




               RYPT T L L GI I
              CC R Y P OO OO GC C



                            Stephen B. Taylor
                            Chief Financial Officer


                            March 2009
Extraordinary
e-gaming
innovation.
                       The story… at a glance
CRYPTOLOGIC




     Long history of profitability, cash generation
     Award-winning casino games, best in the
      industry
     10 new customers in 2008, including some of
      the biggest names in gaming
     Partnerships with global entertainment brands
      – a huge opportunity for growth
     Successful transition to new market, new
      business model
     Strong European base will drive 2009 growth

     Long-term investments in Asia
                      Today’s presentation
CRYPTOLOGIC




      The company
      The market

      The model

      The results

      The strategy

      Q&A
CRYPTOLOGIC
                                         The company:
                                      The e-gaming pioneer
  North American beginnings                      A new model for growth
  •   Company founded                            • New focus on low-cost, high-margin
  •   Major product line: casino                 products
  •   North American focus                       • Build once, license often
  •   Moderate volume, high margin               • Hosted casinos + branded games
  •   Listings on TSX, NASDAQ                    • Unique model: competitors are now
                                                 collaborators (in both casino & poker)


        1995 – 2001                2002 – 2007             2008 and beyond


                Shift to Europe, product diversification
                •   By geography: shift from N America to UK & Europe
                •   By product: the poker phenomenon
                •   Listing on London Stock Exchange
                •   Certification in „tier 1‟ jurisdictions
                •   Focus on small # of top tier licensees
                •   Higher volume, moderate margin
CRYPTOLOGIC                    The market:
                           Forecasts for growth




  • The Internet
                                                                                 $14.9B


  gaming industry
                                                                     $12.6B

                                                          $10.7B
  continues to grow
  rapidly…
                                                           2008       2010 E       2012 E

                                                    Estimated online gross gaming yield
                                                    (excluding North America)




              Source: Global Betting and Gaming Consultants, 2008
CRYPTOLOGIC
                                                          The market:
                                                      Forecasts for growth

                                                          … including growth
              Internet Casino Revenue excluding US
                           (US$ billions)
                                                        
                                                          in CryptoLogic‟s core
               Europe   ROW - Ex US




                $1.5
                                 $1.7
                                              $2.1
                                                          segments: casino
                                              $1.9
                                                          and poker
                                $1.7

                                                         Entire i-gaming
                $1.5




                                                          industry is <5% of
                2008            2010E         2012E


              Internet Poker Revenue excluding US


               Europe
                          (US$ billions)

                        ROW - Ex US
                                                          total global gaming
                                                          market
                                               $0.8
                                 $0.7
                $0.6

                                               $2.3
                                 $2.0
                $1.5


                2008            2010E         2012E
CRYPTOLOGIC
                        The model:
               How we operate in Europe today

                                 Player


               Affiliate      player acquisition




              Licensee                             Licensee
                                 marketing

                Licensor                             Licensor
              (WagerLogic)       licensing         (WagerLogic)

                Software                             Software
                Developer      development           Developer
              (CryptoLogic)                        (CryptoLogic)
CRYPTOLOGIC
                                          The model:
                                   Core products & services
       Casino and Poker Branded Games
         award-winning online casino software: 280+ table and slot games
         exclusive licensing of top global entertainment brands (e.g., Marvel,
          DC Comics, Paramount)
         Part of International Poker Network, in partnership with GTECH
         multiple languages, currencies and platforms (e.g., download, non-
          download)
       Integrated proprietary ECash system (online “cashier”)
       Back-office software
             sophisticated business intelligence & data-mining tools
       24/7 call center customer support, Network Operation
        Center support
       Marketing support services
         competitive advantage
         increases royalty rates
CRYPTOLOGIC
                                      The model:
                               Recurring royalty revenue

       Recurring royalty streams: >90% of revenue
             Internet casino software
             Individual branded games
             ECash software
             back office tools
             customer contact centre
             marketing support
       Other revenue
             one-time software customization fee
             certain marketing support fees
             professional services fees
             portals
CRYPTOLOGIC
                                            Results:
                              A strong history, a time of transition

                   Revenue                                                          EBITDA
                   (US$ Millions)                                                  (US$ Millions)


                               104.0                                                        27.2
                                                                                   22.3

                       86.3
                                                                          17.3

                                       73.7
                                                                 11.5
            63.7                                61.5
                                                                                                     7.8


   44.2


                                                                 2003     2004     2005    2006     2007     2008


                                                                                                             (8.1)



   2003     2004      2005     2006    2007     2008


   (1) 2008 EBITDA excludes non cash charges of approximately 19.2 million. re-organisation cash charge of
   1.4million and departure costs of former CEO of 3.4million



  NB: 2007 results follow US prohibition
CRYPTOLOGIC                    Uses of Working Capital
                                        2008

                                      $million
    Dividends Paid                     5.4
    Shares Repurchased                 1.4
    Investments in New Businesses      3.9
    Capital Expenditure                4.6
    Operations                         4.7
    Departure costs of CEO             3.4
    Restructuring and other movements  3.6
    Total Working Capital Used         27.0
    Working Capital is comprised of the companies current assets less
    current liabilities. This is the best measure of the surplus cash in the
    business.
    CRYPTOLOGIC
                                                             Optimizing expenditures
                    Operating Expenditures(1)
                             (US $ Millions)
                                                                                                               G&A
                                    14.4
                                                                                                        (US $ Millions)
                                           13.2
                            12.7
                                                   12.3
                     11.8                                  11.9
             11.4
                                                                                                                            4.0
                                                                                                                                            3.7

                                                                                                                                   3.1
                                                                                                      2.9    2.9     2.9


                                                                                               2.1




                                                                                                Q2     Q3     Q4     Q1     Q2      Q3      Q4
                                                                                               2007   2007   2007   2008   2008    2008    2008

             Q2       Q3     Q4     Q1      Q2     Q3      Q4
            2007     2007   2007   2008    2008   2008    2008
                                                                                                      Amortization
                                                                                                         (US $ Millions)
    Resized cost structure, reorganized for growth                                            1.7    1.7    1.7

                                                                                                                    1.4
                                                                                                                           1.5    1.5     1.5




    In the short-term, we will ensure that all
     expenditures are supported by new revenue
     streams                                                                                    Q2
                                                                                               2007
                                                                                                       Q3
                                                                                                      2007
                                                                                                              Q4
                                                                                                             2007
                                                                                                                     Q1
                                                                                                                    2008
                                                                                                                            Q2
                                                                                                                           2008
                                                                                                                                   Q3
                                                                                                                                  2008
                                                                                                                                           Q4
                                                                                                                                          2008



(1) Operating expenses excludes $4.2m and $1.4m loss on foreign exchange recorded in Q3 2008
      and Q4 2008, respectively.
CRYPTOLOGIC
                                 Strong balance sheet

                                                                                                As at
   Continue to invest in business     (in US$)
                                                                                              12/31/08

     product development &            Total Cash                                                 $43.8M
      enhancements                     Cash per Diluted Share                                     $3.15

     back office & customer care      Working Capital                                            $41.2M

     innovation                       Working Capital per Diluted Share                          $2.97

     regulatory initiatives           Quarterly Cash Dividend per Share                          $0.03


                                                               Working Capital
   Dividends                                                      (US Millions)

     $0.03 per share for Q4, a sign
      of confidence in cash
      generation
                                             80        74        68        68      63
                                                                                             53
                                                                                                       41


                                           Q2 2007   Q3 2007   Q4 2007   Q1 2008 Q2 2008   Q3 2008   Q4 2008
CRYPTOLOGIC
                                        2009 plan

       Right-size cost structure, refocus business
         Cut operating costs by $13 million through poker
          partnership, employee reductions, facilities downsizing
       Bring new customers on stream
         A transition from old to new customer base
         Branded games hold huge promise
         Platform partners mean rapid implementation
       Financial targets: Ambitious & achievable
         Net income: $9-$10 million
         Diluted EPS: $0.65 - $0.71 cents
         Revenue from new customers: $ 8 million
         Cash generation: $11-$13 million
CRYPTOLOGIC
                                     The strategy


                  CASINO               BRANDED GAMES

              Our core business      Our emerging advantage




                  POKER                  INNOVATION

     Partnership for profitability     Shaping the future
CRYPTOLOGIC
                                    2009 priorities
         Maintain industry leadership
               Top Casino Software Award, 2006, 2007, 2008
         Grow our innovation engine
               CryptoLogic Centre for Innovation
         Pursue a blend of proven & promising
          gaming/entertainment concepts
               Famous brands: Spider-Man, Hulk, Superman,
                Batman, Street Fighter II, King Kong
               Casual games – Bejeweled, Cubis, Sudoku
               Cultural-specific games
CRYPTOLOGIC
                              2009 priorities (II)

       Focus on What We Do Best
         Hosted casino
         License branded games
         Providing poker on the International Poker Network provides
          higher liquidity – at far lower cost
       Increase Revenue with New Business
         Major wins with 888, Partygaming, GigaMedia and SkyBetting
          & Gaming
         Healthy pipeline of new customers for future growth
       Dramatically reduce costs
         Take cash costs from $60 million annually to $45 million
CRYPTOLOGIC
                     Our guiding principles

     Make  the CryptoLogic brand synonymous
      with innovation
     Anticipate customers‟ needs

     Show passion and commitment in all we do

     Settle only for being the best

     Make a difference for every customer,
      every player, every investor
CRYPTOLOGIC




              Questions

				
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