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03.11.2006 - euroadhoc / Börse / stock market / Mergers - Acquisitions - Takeovers / Global Expansion
euro adhoc: JoWooD Productions Software AG / Mergers - Acquisitions - Takeovers / JoWooD to acquire Video Game Publisher DreamCatcher Inc. (E)=

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03.11.2006
Liezen, Austria/Toronto, Kanada: JoWooD Productions Software AG (ATXPrime: JWD)
announces that it has entered into an agreement to acquire Canadian based video
games publisher, DreamCatcher Inc. 
This acquisition will provide JoWooD with direct access to every major retailer
of PC and video games in North America.  In addition, JoWooD will own America's
#1 publisher of Adventure games further underlining JoWooD’s commitment to
strengthen and broaden its distribution capacity through a proven and
established network and to deliver compelling PC and video games to consumers
worldwide.
"Acquiring DreamCatcher perfectly aligns with JoWooD’s strategy to deliver
high-quality computer and videogames globally.  We are looking at DreamCatcher
as our North American counterpart and there are numerous and important synergies
waiting to be exploited by all of us" says Albert Seidl, CEO of JoWooD
Productions Software AG.
"DreamCatcher is very excited about joining forces with JoWooD. There are some
incredible synergies that are now in place that will enable us to build a very
strong global company.  JoWooD possesses a great line-up of titles, supported by
some dynamic brands and we are thrilled about helping to further grow those
brands in North America," comments Richard Wah Kan, President and CEO of
DreamCatcher.
"We offer very strong North American assets, including a leading position in
Adventure game publishing, as well as an extensive retail distribution network
that we have been building since our inception over 10 years ago," he adds. 
Under the terms of the agreement, DreamCatcher will become a wholly owned
subsidiary of JoWooD and the company’s management team and employees will
continue to operate from their office based in Toronto, Canada.  The acquisition
will be contemplated through a share deal whereby JoWooD will increase its share
capital by utilizing the existing authorized capital. The newly issued shares
will be formally subscribed for by the shareholders of DreamCatcher. The
shareholders of Dreamcatcher will hold a 23% stake in the share capital of
JoWooD after closing of the transaction. The capital increase is subject to an
audit report by an expert to be appointed in accordance with Austrian applicable
provisions.
DreamCatcher’s track record, its leading position in the market of Adventure
games, and the experienced staff constitute the basis for the soon-to-be
combined company.  Following extensive business, finance, legal and tax due
diligence, both companies expect a positive impact on DreamCatcher’s balance
sheet once the transaction has been closed.
"DreamCatcher’s strong brands and licenses such as Painkiller, Agatha Christie,
and others, significantly contributed to last year’s turnover of CAD 25 million
(~ EUR 17,5 million) respectively," said Albert Seidl.  With upcoming sequels
from these brands as well as some additional new brands, JoWooD’s capacity and
existing network throughout Europe allows JoWooD to immediately start marketing
DreamCatcher’s titles. 
JoWooD will now benefit from a much larger product portfolio and the ability to
simultaneously release products world wide through JoWooD’s and DreamCatcher’s
mature distribution networks.  DreamCatcher’s line-up of console titles also
complements JoWooD’s current product strategy.
In particular, JoWooD will benefit from DreamCatcher’s long-term and direct
relationship to the most important retailers in the North American market,
elevating JoWooD’s margins. 
Given the significant increase of the combined product-portfolio, JoWooD
furthermore anticipates a substantial increase in the overall business volume.
The closing of the transaction is in particular subject to anti-trust approvals
in Austria and Canada.

About JoWooD Productions Software AG
Shares of the JoWooD Productions Software AG are traded at the Vienna stock
exchange in the prime market segment.  JoWooD is one of the leading publishers
of computer- and videogames.  JoWooD develops and publishes state-of-the-art
entertainment software for all major existing and upcoming systems.  JoWooD`s
games are distributed in all territories by a worldwide net of distribution
partners.
Visit www.JoWooD.com for more information.
About DreamCatcher Inc.
DreamCatcher Inc. is a leading worldwide publisher and distributor of
interactive entertainment software.  Established in 1996, the company markets
its products under two popular labels: DreamCatcher Games, featuring the
critically acclaimed, best-selling game Painkiller; and The Adventure Company,
the number one brand for PC adventure game sales worldwide including award
winning titles such as Syberia and Agatha Christie: And Then There Were None. 
DreamCatcher products include titles for the PC as well as all leading hardware
platforms.  DreamCatcher is partnered with venture capital firms VenGrowth
Private Equity Partners Inc. and Lawrence Investments LLC as well as Wellington
Financial LP, and the Royal Bank of Canada.  DreamCatcher’s head office is
located in Toronto, Canada.
Visit www.dreamcatchergames.com for more information.
Further inquiry note:
JoWooD Productions Software AG
Dr. Albert Seidl, Vorstand
Mag. Philipp Brock, Investor Relations
Tel.: +43 (0)3612 2828
mailo:investor@jowood.com
http://www.jowood.com
emitter:      JoWooD Productions Software AG
              Pyhrnstraße 40
              A-8940 Liezen
phone:        +43 (0)3612 2828
mail:         investor@jowood.com
WWW:          http://www.jowood.com
ISIN:         AT0000747357
indexes:      WBI, ATX Prime, ViDX
stockmarkets: free trade: Börse Berlin-Bremen, Baden-Württembergische
              Wertpapierbörse, Frankfurter Wertpapierbörse, Bayerische Börse,
              official dealing: Wiener Börse AG 
sector:       Software
language:     English