CryptoLogic Expands UK Shareholder Base

    News Editors

    TORONTO--(BUSINESS WIRE)--Jan. 31, 2005--CryptoLogic Inc., (TSX:CRY) (NASDAQ:CRYP) (LSE:CRP) a leading software developer to the global Internet gaming market, announced today a placing through the facilities of the London Stock Exchange to a number of prominent UK institutional investors of an aggregate of 1,075,000 common shares in the company at a price of Pound Sterling 12.50 per share (approximately Cdn$29.24), representing approximately 8% of the issued share capital.

    The shares were purchased from Andrew Rivkin and Mark Rivkin, the founders and former CEO and COO respectively of the company from inception to 2000. The transaction was facilitated by Bridgewell Securities Limited of London, England, CryptoLogic's recently appointed UK corporate broker.

    "We are delighted to have attracted blue chip UK institutional shareholders, and view their investment as a positive endorsement of CryptoLogic's growth strategy," said Lewis Rose, CryptoLogic's President and CEO. "The UK is emerging as the global centre for regulated online gaming, and the diversification of our shareholder base into this major market reflects our international expansion and should help enhance liquidity in the London market."

    About CryptoLogic(R) (www.cryptologic.com)

    Focused on integrity and innovation, CryptoLogic Inc. is the world's largest public online gaming software developer. The company's technologies enable secure, high-speed financial transactions over the Internet. CryptoLogic continues to develop state-of-the-art Internet software applications for both the electronic commerce and Internet gaming industries. WagerLogic Limited, a subsidiary of CryptoLogic, licenses its gaming software and services to customers worldwide. For more information on WagerLogic(R), visit www.wagerlogic.com.

    CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY), on the Nasdaq National Market (symbol: CRYP), and on the Main Market of the London Stock Exchange (symbol: CRP).

    CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

    Statements in this press release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.



    CryptoLogic Inc. (TSX:CRY) (NASDAQ:CRYP) (LSE:CRP)

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CONTACT: CryptoLogic Nancy Chan-Palmateer Director of Communications (416) 545-1455 OR Argyle Rowland Daniel Tisch Media (416) 968-7311 ext. 223 dtisch@argylerowland.com OR Argyle Rowland Melissa Chang Media (416) 968-7311 ext. 239 melissa@argylerowland.com

KEYWORD: NEW YORK UNITED KINGDOM INTERNATIONAL CANADA EUROPE INDUSTRY KEYWORD: SOFTWARE BOND/STOCK RATINGS SOURCE: CryptoLogic Inc.

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