03.11.2006 – 09:13

JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
Mergers - Acquisitions - Takeovers / JoWooD to acquire Video Game Publisher DreamCatcher Inc.

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

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.

end of announcement                               euro adhoc 03.11.2006 08:36:37

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

Branche: Software
ISIN: AT0000747357
WKN: 935221
Index: WBI, ATX Prime, ViDX
Börsen: Börse Berlin-Bremen / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade
Bayerische Börse / free trade
Wiener Börse AG / official dealing