18.06.2004 – 12:04

JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
JoWooD announces details of the capital increase (E)

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

- Subscription price for public offering fixed at 2.40 EUR 
- Fix price for strategic partner set at 2.50 EUR

An extraordinary shareholders meeting on June 15, 2004 decided to
increase JoWooD’s nominal capital by up to 7,880,000 EUR through an
issue of up to 7,880,000 bearer shares with a nominal value of 1 EUR
per share with an entitlement to dividend per January 1, 2004 and a
subscription right for existing shareholders pursuant to § 153 of the
Austrian stock corporation law.

Existing shareholders may exercise their right to subscribe for new
shares at a price of 2.40 EUR by submit-ting a subscription form at
their depository bank during the subscription period commencing on
June 18, 2004 and ending on July 2, 2004. JoWooD reserves the right
to extend the subscription period. The sub-scription ratio has been
fixed at 10:3, i.e., ownership of 10 existing shares entitles the
holder to subscribe for 3 new shares of the current capital increase.
Subscription rights (ISIN AT0000617287) will be dealt pre-sumably on
June 24, 25, and 28, 2004 at both the Vienna and Berlin stock
exchanges. The subscription rights will expire at the end of the
subscription period.

Shares will also be offered to other interested investors to the
extent subscription rights were forfeited. The corresponding offer
period for these shares will commence on June 18, 2004 and end on
July 7, 2004. JoWooD reserves the right to shorten or prolong this
offer period. Global certificates will be issued for the new shares.

The subscription price for the investment of JoWooD’s strategic
partner Fluent Entertainment Inc. has been fixed at 2.50 EUR.

The agreement between Fluent and JoWooD calls for close cooperation
in the areas of product development as well as world wide marketing
and sales of both partners’ products. A team of experts from JoWooD
and Fluent will jointly evaluate prospective titles, estimate sales
potentials and determine minimum sales guaran-tees for accepted
titles.

Marketing activities will be planned together. The companies will
exchange key marketing personnel (se-lected JoWooD employees will be
based in the US and vice versa) and devise joint marketing plans.
Manda-tory marketing expenditures per title have been fixed
contractually.

Fluent Entertainment is contractually bound to acquire a minimum of
4m JoWooD shares. Fluent may extend this investment to up to 8m
shares until September 30, 2004 provided that Fluent’s stake does not
exceed 20% of JoWooD’s capital. For each purchased share, Fluent will
furthermore obtain a 1:1 share option with a maturity of two years.
However, Fluent may exercise these options only up a limit of a 20%
total investment in JoWooD. Fluent may not sell JoWooD shares at the
stock exchange during the maturity period.
 The shares will be issued form the authorized capital, subscription
by existing shareholders will be excluded.

end of announcement        euro adhoc 18.06.2004

Further inquiry note:

JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations Manager.
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