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Cryptologic Inc.

NASDAQ CRYP

***BUY***

website

New partnership in Asia

Signed a memorandum of understanding with Brilliance Technology Co. and 568 Network Inc. to penetrate the high-growth Chinese market with CryptoLogic’s existing games and new games for the Chinese diaspora. Subscription-based ”play-for-fun“ games are planned to be offered over the Internet and mobile phones. ”Play-for-money“ games are planned to be offered through retail locations licensed by the China Welfare Lottery, the nation’s gaming licensing authority

Strategic acquisition

Purchased the poker brand and related assets of Parbet.com, a popular Scandinavian online poker room, and licensed them to a private Maltese online gaming operator

Game innovation

Converted major casino games to multi-language basis

Awarded Gambling Online’s Top Casino Software Award for the second year running. The award is based on the votes of players from around the world

Extended exclusive brand licensing agreement with Marvel Entertainment Inc. to 2010

Corporate initiatives

The company plans to establish its new executive headquarters in Ireland in 2007, subject to approval from a special meeting of shareholders on May 24, 2007

Javaid Aziz joined the company on April 2, 2007 as President and Chief Executive Officer

On May 9, 2007, CryptoLogic’s Board of Directors declared a quarterly cash dividend of US$0.12 per share

Market Cap:347.65M

Cash $102 million

Short term investments $50 million

Net Tangible Assets

2006 $109,760

2005 $85,372

2004 $70,205

Debt is zero

Average Volume (3 month): 152,970

Average Volume (10 day): 120,480

Shares Outstanding: 13.90M

Float: 13.87M

% Held by Insiders: 11.88%

% Held by Institutions: 49.50% including Pabrai funds

The company has $102 million in cash, no debt and a $344 million market cap, which means almost a third of its market cap is in cash. Additionally, it trades at just 8 times EBITDA.

New and renewed customers

Signed World Poker Tour for exclusive three year contract

Launched PlayboyGaming.com’s poker site, with the casino site set to launch in the second quarter of 2007

Launched sites for Betsafe and Parbet, two growing Scandinavian poker brands

Renewed its contract with William Hill for three years with exclusive provisions until 2009 under similar financial terms

Launched DTDPoker, under an exclusive 3-year contract. DTDPoker is the on-line home of the new UK land-based poker club, DUSKTILLDAWN, expected to be the largest in the UK

New market: Government-owned casino

Signed an exclusive three-year agreement to provide both poker and casino software for Holland Casino, the Netherlands’ government-owned casino operator. Subject to certain approvals, the new sites are expected to launch in June 2007

In light of the industry-wide impact of UIGEA, CryptoLogic achieved encouraging revenue and earnings results in Q1 2007. CryptoLogic accomplished this notwithstanding the U.S. prohibition of Internet gaming in October 2006. Earnings include a change in estimate of the future amount to be paid out from the jackpot provision ($4.0 million after tax); the after-tax charge of $1.4 million related to establishing the new Ireland headquarters; and development costs relating to new licensee sites ($0.7 million after tax).

Total Revenue: Total revenue for the quarter was $19.6 million, 27.5% lower than Q1 2006. Poker revenue was down disproportionately more than casino reflecting the higher impact of the U.S. legislation on this segment of the business, and the loss of Betfair in Q4 2006. Casino revenues were increased by $4.5 million as the company revised its estimates for amounts required to discharge future jackpot payouts.

Investment analysts from Canada, the United States and the United Kingdom publish research on CryptoLogic.

Firm	Analyst	City/Country
B. Riley & Company	Ali Mogharabi	Los Angeles, USA
BMO Nesbitt Burns	Peter Sklar Andrew McKendry	Toronto, Canada
Bridgewell Securities Limited	(in transition)	London, England
Canaccord Capital (Europe) Limited	Greg Harris Anthony Chow	London, England
CIBC World Markets	Todd Coupland	Toronto, Canada
Paradigm Capital, Inc.	Gabriel Leung	Toronto, Canada
Roth Capital Partners	Todd Eilers	California, USA
Sidoti & Company, LLC	Brian Kinstlinger	New York, USA
ThinkEquity Partners	Traci Mangini	San Francisco, USA

Focused on integrity and innovation, CryptoLogic Limited is a world-leading, blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. WagerLogic Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers who offer their games around the world to non-U.S. based players. For information on WagerLogic®, visit www.wagerlogic.com.

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

Prior to enactment of the Unlawful Internet Gaming Enforcement Act [UIGEA] passed in October 2006, licensees' revenue from Europe-based players was approximately 70% of total revenue; now all revenue is from non-U.S. based players. More than 90 per cent of CryptoLogic's licensee revenue is generated from the U.K. and continental Europe, widely known as the industry's most attractive markets. CryptoLogic has long advocated the regulation of Internet gaming for the protection of players and the credibility of the industry, and remains one of the few providers whose software has passed the industry's most stringent regulatory tests.

CryptoLogic's new European base brings the company closer to its core customer base and their principal markets, and supports the company's global growth strategy, including expansion into Asia.

Game Innovation Continue to lead the market with innovative casino and poker products that help our customers grow organically and profit from the games their players want to play.

New Customers Aggressively pursue new poker licensees to enhance the liquidity of the poker network. Continue to pursue ”blue-chip“ brands to build the online casino business.

Control and Optimize Expenditures To optimize profits in a global market that now excludes the US, CryptoLogic is further enhancing control and optimization of all discretionary operating and capital expenditures.

Strategic Acquisitions Aggressively pursue strategic, accretive acquisition opportunities to accelerate the advancement of the company's strategies. Acquisition opportunities have multiplied since the new US law, and the company will continue to evaluate new and existing prospects.

Expand in Asia CryptoLogic will continue to build its European leadership position in the near-term and grow its presence in Asia to become a leader in this large, emerging market.

PROVEN PERFORMER CryptoLogic plays to win. And we’re coming up aces: a decade of revenue growth, consistent operating profits, cash generation, a strong balance sheet and solid margins. In 2005, we grew revenue by 35%, earnings by 50% and diluted earnings per share by 45%. Our success is global. Our software has processed over US$50 billion in wagers, and is a source of great entertainment for over 2 million players worldwide.