Gameloft’s financial statements for the first half-year ending June 30,
2010 breaks down as follows:

    In EUR millions                           S1 2010       S1 2009

    Revenue                                     66.6          60.1
    Other income                                 0.1           0.1
    Cost of sales                               (9.4)         (7.7)
    R&D                                        (32.0)        (29.2)
    Sales & Marketing                          (13.7)        (13.8)
    Administration                              (5.3)         (4.3)
    Other income and expenses                   (0.5)         (0.6)
    Current operating income                     5.8           4.5
    Stock-based compensation                    (0.9)         (1.3)
    Other operational revenues and expenses     (0.2)          0.0

    Operating income                             4.7           3.2
    Net financial income                         1.3           0.3
    Tax expense                                 (0.7)         (1.2)
    Net profit/loss (group share)                5.3           2.2

Gameloft achieved consolidated sales of EUR66.6 million for the first half of 2010, up by 11% from the first half of 2009. The company’s growth accelerated during the second quarter of 2010. The activity continues to be driven by increased market share in traditional Java and Brew phones, as well as by the massive success enjoyed by Smartphones around the world.

The solid growth in sales and efficient cost control in the company’s three departments, R&D, Sales & Marketing, and Administration, have resulted in a substantial increase in Gameloft’s operating and net income in the first half of 2010. The current operating income for the first six months of fiscal year 2010 stands at EUR5.8 million, up 29% compared to the first half of 2009. Therefore, the operating margin stands at 8.8%, compared to 7.6% during the first half of 2009.

The half-year impact from expensing stock options is EUR0.9 million. This charge does not have an impact on the company’s equity and cash level. Interest income amounted to EUR+1.3 million and is comprised of exchange gains and interest on the company’s net cash.

The net half-year profit stands at EUR5.3 million, up 140% compared to the first half of 2009. The Group’s net margin reached 7.9% which more than doubled compared to the first half of 2009. Earnings per share and fully diluted earnings per share both stand at 0.07EUR.

Healthy Financial Position

Gameloft’s financial position was very solid on June 30, 2010. The company’s equity stood at EUR69.6 million and net cash and cash equivalents totaled EUR25.9 million. Cash generation was particularly strong during the first half of the year. The company’s self-financing capacity reached EUR6.9 million and on June 30, 2010 Gameloft’s net cash increased by EUR6.2 million. Therefore, the company has the financial resources necessary to continue its fast growth and take market share around the world.