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December 15, 2004
InfoSpace Signs Agreement to Acquire Mobile Games Company Elkware GmbH

InfoSpace, Inc. (Nasdaq:INSP) today announced that it has signed a definitive agreement to acquire Elkware GmbH, a German mobile games company, for approximately $26 million payable in cash. In the three months ended September 30, 2004, Elkware generated approximately $1 million in revenue. The transaction is expected to close in early January 2005.

"We are excited about expanding our presence in the European mobile market," said Jim Voelker, chairman and chief executive officer of InfoSpace, Inc. "Elkware's interactive, role playing games and successful strategy titles are a great complement to our casual games from IOMO and growing slate of multiplayer tournament games for prizes. Together we will be able to leverage our products, technology and broad distribution with mobile operators to reach mobile subscribers around the world."

Elkware brings more than 90 original and branded J2ME games titles and strong international mobile operator relationships to InfoSpace. Elkware has one of the largest portfolios of J2ME games in multiple languages across a broad spectrum of mobile handsets. Elkware features such games as "Anno 1503 A.D. -- The New World," "Sacred," "Port Royale 2," "X-Files," "Pamela Anderson-Exposed!" and the upcoming Miami Vice games. Elkware games are available in over 10 European countries through relationships with major mobile operators including Vodafone, O2, Orange, T-Mobile, Telefonica Moviles, 3 and TIM. They also are pre-installed on handsets from Siemens.

"Mobile gaming is a rapidly evolving and growing market. We are excited to have the significant resources of InfoSpace to expand our product portfolio and continue to develop exciting immersive gaming experiences for mobile gamers," said Jan Andresen, CEO, Elkware. "As part of InfoSpace Mobile, we will also be able to leverage its multiplayer tournament technologies and its North American distribution."

An award-winning developer and publisher of high-quality mobile games, Elkware is known for its extensive distribution and technology that enables it to deliver exceptional 3D graphics and game-play on a wide array of mobile handsets for mobile operators worldwide. The acquisition marks InfoSpace's third mobile gaming acquisition in 2004, following its acquisition of the multiplayer games for prizes company Atlas Mobile and its recent purchase of U.K. based IOMO, Limited.

Source: Infospace Mobile

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