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To: Irish who wrote (10905)	6/20/2001 12:19:59 PM
From: Frederick Langford	Read Replies (1) \| Respond to of 19633

CRYP I am accumulating shares in this company on pullbacks: PE is 21 <from May 24> CryptoLogic Comments On Positive Outlook For 2001 & Provides 2002 Guidance; OnTrack With Management's Growth Targets Business Editors TORONTO--(BUSINESS WIRE)--May 24, 2001--CryptoLogic (NASDAQ:CRYP) (TSE:CRY.) Internet Gaming Expected to Grow 35%+ Per Year; Global Trend Towards Regulation Will Increase Market Opportunities; CryptoLogic Well Positioned to Extend Leadership to New Gaming Verticals CryptoLogic Inc., a leading software supplier to the Internet gaming and e-commerce industries, is pleased to announce the company's outlook for the next few quarters in 2001 and provide targets for 2002. "Almost five months on the job now, I am even more excited about the prospects for CryptoLogic and the Internet gaming market," said Jean Noelting, president and CEO of CryptoLogic Inc. "The market fundamentals are strong, growing at plus 35% for the next few years and moving towards mainstream entertainment with broader gaming options. As well, global regulation is becoming the trend, reinforcing CryptoLogic's compliance efforts. In response, we have decided to step up our regulatory investment to take advantage of this opportunity. As we help our licensees leverage and increase their user base in casino and other gaming areas, CryptoLogic is well positioned for long term growth." Noelting continued, "Heading into my first annual meeting with shareholders and in the spirit of fair disclosure, I felt it apropos to provide further guidance for this year and extend our view into 2002. This year's revenue growth and net margin targets remain solidly on track and consistent with market expectations. As expected, interest income will be reduced significantly reflecting lower interest rates and lower invested capital due to our share repurchase. CryptoLogic will continue to see strong performance in 2002 as we benefit from new licensees, acquisitions and expansion into new gaming verticals. We continue to believe that our focus on large, brand name customers, regulatory compliance and proven financial track record will help us realize our vision to be the leading global provider in e-gaming areas in casino, bingo, poker, lotteries and sports betting powered by CryptoLogic." The following forward-looking statements are based on the company's current expectations and are subject to risks and uncertainties. Actual results may differ materially. Fiscal and Quarter Targets for 2001: CryptoLogic maintains its guidance for 20% revenue growth and 45% net margins for the full year of 2001. As has been the historical pattern, the first and fourth quarters will post the strongest performance and the middle quarters will reflect Internet seasonality. T -- Fiscal 2001: revenue ranging between US$41.0-$42.0 million; net income ranging between US$19.0-US$20.0 million. -- Second quarter 2001: revenue between US$9.5-$10.0 million; net income between US$4.2-$4.6 million. -- Third quarter 2001: revenue between US$9.7-$10.2 million; net income between US$4.2-$4.6 million. -- Fourth quarter 2001: revenue between US$10.8-$11.3 million; net income between US$5.4-$5.9 million. -- Interest income for fiscal 2001: Due to the buy back in 2001, the company bought back approximately 1.5 million shares to date at a cost of US$13.4 million and lower than anticipated interest rates, interest income for the year is expected to be between US$2.3-$2.5 million, a decline of US$1.7 million versus earlier projection. -- Cash position for fiscal 2001: CryptoLogic expects to generate approximately US$5.0 million in free cash flow each quarter, which would see 2001 end with approximately US$65.0 million in total cash, not accounting for any further share buy back and acquisition activity. -- Total expenses for fiscal 2001: CryptoLogic has accelerated its plans towards regulatory compliance as well as enhancing the management team. The company will invest another US$750,000 this year. Expenses are expected to amount to US$21.0-$23.0 million. -- Fully diluted shares outstanding for fiscal 2001 are expected to increase from 15.7 million to about 16.0 million shares, excluding acquisition and share buy back activities. -- For the year, CryptoLogic expects to sign 4 new, major licensees, deploy its strong cash reserves to make at least one acquisition and expand into at least one new gaming vertical. T Fiscal 2002 Targets: With the contribution of new licensees, acquisitions and entry into new gaming verticals in 2001, CryptoLogic is comfortable with targets of 25% revenue growth and 45% net margins in fiscal 2002. About CryptoLogic Inc. CryptoLogic Inc. is the leading software development company serving the Internet gaming market. The company's proprietary technologies enable secure, high-speed financial transactions over the Internet. CryptoLogic continues to innovate and develop state of the art Internet software applications for both the electronic commerce and Internet gaming industries. CryptoLogic's common shares trade on the Toronto Stock Exchange under symbol the CRY and on the Nasdaq National Market under the symbol CRYP. There are currently 13.1 million common shares outstanding (15.7 million shares fully diluted). Fred