26.05.2004 – 09:03

JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
JoWooD presents strategic Partner for distribution in the US Partner will acquire minority share through capital increase (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

-Strategic partnership with Fluent Entertainment creates wide
opportunities for growth and attractive margins
-Capital increase scheduled for second half of June

JoWooD Productions Software AG a public company listed at the Vienna
Stock Exchange which has successfully completed its restructuring in
2003 announces a strategic alliance with the US developer/publisher
Fluent Entertainment. The partnership shall include the acquisition
of a non-controlling stake in JoWooD by Fluent, and the co-publishing
of the other partner’s product portfolios by both partners. The
long-term objective of the partnership with Fluent is to improve
JoWooD’s presence in the strategically important US-market and to
improve the sales potential for JoWooD’s proven product portfolio.

Fluent Entertainment was founded in 2002 by a team of distinguished
industry professionals, several of which have been involved in the
foundation and development of some of the most successful interactive
entertainment companies over the last 20 years.  The Californian
based company uses a business model which is very similar to
JoWooD’s, i.e. focus on brands, with distribution through third
parties with minimum guarantees.

First class contacts to major US-distributors with very high market
coverage make Fluent an ideal partner for the US market.

The partners will share their distribution know how about their
respective home markets.

Fluent Entertainment is intended to acquire a 20% stake in JoWooD -
well below a blocking minority - by way of a capital increase
scheduled for the second half of June. The terms for the capital
increase will be decided shortly after an extra ordinary
shareholder’s meeting sheduled for June 15, 2004. The capital
increase is intended to be conducted in two tranches. Capital Bank -
GRAWE Group AG will function as the lead manager. The first tranche
of up to 8m stocks will be open for subscription only to the
strategic partner and shall exclude subscription by existing
shareholders. A second tranche of up to 8m stocks shall be offered to
existing shareholders at equal terms. The fixed issue price will be
announced upon the deposit of the issue prospectus. The issue price
will not take into account recent short-term deviations in JoWooD’s
stock price. The terms and schedule for the capital increase will be
announced upon the deposit of the issue prospectus which is planned
for the second part of June.

JoWooD takes a positive outlook on the basis of an attractive product
pipeline, a promising strategic alliance, as well as a current order
backlog for the business years 2004 and 2005 of over EUR 35m - with a
significant amount of highly promising titles not yet sold - and
expects a significantly positive result for the business year 2004.

end of announcement        euro adhoc 26.05.2004

Further inquiry note:

JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations
Tel.: +43 (0)3614 2966 1015
mailo:investor@jowood.com
http://www.jowood.com

Branche: Software
ISIN: AT0000747357
WKN: 074735
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade