Gameloft

Results for the First Half of 2009

PR Newswire/Les Echos/

Paris, August 31, 2009

                      Results for the First Half of 2009
                              Revenues up by 20% 
                Current Operating Income of EUR4.5M, up 65% 
                            Net Cash of EUR16.9M, up 57%

2009 Half-Year Results

Gameloft's financial statements for the first half-year ending June 30, 2009
break down as follows:

In EUR millions                              H1 2009      H1 2008
Sales                                        60,1         50.3
Other income                                  0,1          0,2
Cost of goods sold                           -7,7         -4,1
R&D                                         -29,2        -26,6
Sales & Marketing                           -13,8        -13,8
Administration                               -4,3         -4,5
Other income and expenses                    -0,6          1,3
Current operating income*                     4,5          2,8
Stock-based compensation                     -1,3         -1,3
Other operational revenues and expenses       0,0         -0,1
Operating income                              3,2          1,4
Financial result                              0,3         -1,3
Tax expense                                  -1,2         -0,9
Group Share of Net Income                     2,2         -0,8

*Before stock-based compensation

Gameloft achieved consolidated sales of EUR60.1 million for the first half of
2009, up by 20% from the first half of the previous year. Mobile games 
activity accounts for 95% of the company's half-year sales. The remaining 5% 
are related to console games.

The solid growth in sales and the stabilization of the company's headcount
resulted in a significant increase in operating income and net income. Current
operating income for the first six months of 2009 stands at EUR4.5M, up 65%
compared to the first half of 2008. The operating margin stands at 7.6%,
compared to 5.5% in the first half of 2008.

Stock-based compensation reached EUR1.3M. This expense does not have any
negative impact on the company's equity and cash level. Interest income 
amounted to EUR0.3M and is comprised of exchange gains and interest on the 
company's cash.

The net half-year profit therefore stands at EUR2.2M, a clear improvement 
over the first half of 2008. 

Healthy Financial Position 

Gameloft's financial position remains very strong as of June 30, 2009. The
company's equity stands at EUR52.1M, net cash was EUR16.9M and financial
indebtedness remained at zero. Cash generation was particularly healthy with
over EUR6M in additional cash generated over the first six months of the year.
Gameloft therefore has the financial resources necessary to continue its fast
growth and take market shares around the world.

Outlook for 2009

Gameloft continues to reap the fruit of its investments in its development 
and distribution abilities. These investments that enabled Gameloft to grow 
quickly and to position itself as one of the industry leaders in the past 
few years are now also resulting in increased profitability for the company.

   •   Gameloft is probably the player that benefits most from the innovations
       introduced by the traditional telephone manufacturers such as Nokia 
       and Samsung and from the arrival of new dynamic players in the market 
       such as Apple and RIM. As such, Gameloft has become one of the top 
       game publishers on Apple's AppStore with 35 games released so far, of 
       which 18 are or were ranked in the Top 10 Best-Selling Games.
	
   •   Gameloft continues to win over substantial market shares in 
       Smartphones and traditional Java and Brew phones.

   •   Gameloft is one of the very rare players in the market that has the
       resources and know-how that allows it to be present with downloadable 
       content for the launch of all the new consoles (PlayStation Network,
       Nintendo DSiWare, Nintendo WiiWare, etc.).
	
Gameloft is therefore renewing its growth target for sales as well as for
profitability over the full year of 2009.

Sales for the third quarter of 2009 will be published on October 28, 2009.

Contact:
Aude Fouquier
PR Manager
Tel.: + 33 (0)1 58 16 21 55
Email: [email protected]

For more information, consult www.gameloft.com 

About Gameloft
Gameloft develops and publishes video games for mobile telephones and consoles
worldwide. Gameloft was founded in 1999 and is now positioned as one of the 
most innovating companies in its field. Gameloft designs games for telephones
incorporating the Java, Brew and Symbian technologies, for which the number of
units should exceed four billion in 2012. Gameloft games are also available on
WiiWare, DS, Microsoft Xbox LIVE Arcade, iPod and PCs.
    
Partnership agreements with major rights holders such as Ubisoft 
Entertainment, Universal Pictures, ABC, Touchtone Television, Dreamworks 
Animations SKG, Endemol, 20th Century Fox, Viacom, Sony Pictures, Warner 
Bros., FIFPro, Ferrari, Roland-Garros, Gus Hansen, Kobe Bryant, Derek Jeter, 
Robinho, Reggie Bush, Chuck Norris, Patrick Vieira, Christophe Dominici 
and Jonny Wilkinson allow Gameloft to associate its games with very strong 
international brands. In addition to these brands, Gameloft has its own
brands, such as Block Breaker Deluxe, Asphalt: Urban GT and New York Nights.

Thanks to agreements with all of the main telecom operators, telephone
manufacturers and specialized distributors, as well as its www.gameloft.com
boutique, Gameloft's games are distributed in 80 countries.
    
Gameloft has locations in New York, San Francisco, Seattle, Montreal, Mexico,
Buenos Aires, Paris, London, Koln, Copenhagen, Milan, Madrid, Lisbon, Vienna,
Warsaw, Helsinki, Bucharest, New Delhi, Kuala Lumpur, Peking, Tokyo, 
Hong Kong, Seoul, Singapore and Sydney. Gameloft is listed in Compartment B 
of the Paris Stock Exchange (ISIN: FR0000079600, Bloomberg: GFT FP, Reuters: 
GLFT.PA).

P&L (in thousands of euros)                            H1 2009       H1 2008
Sales                                                   60 102        50 288
Other revenue from the activity                            137           180
Cost of sales                                           -7 720        -4 054
R&D                                                    -29 234       -26 630
Sales and Marketing                                    -13 847       -13 843
Administration                                          -4 310        -4 521
Other income and operating expenses                       -587         1 334
Current operating income                                 4 541         2 754
Stock-based compensation                                -1 261        -1 262
Other operating revenue and expenses                       -44           -69
Operating income                                         3 237         1 423
Cost of net financial indebtedness                          58           108
Interest income                                          1 965         1 693
Interest expense                                        -1 739        -3 103
Financial result                                           284        -1 301
Employee profit-sharing                                    -78             0
Tax expense                                             -1 248          -888
Net income                                               2 194          -766
. Group's share                                          2 198          -766
. minority interests                                        -3             0

BALANCE SHEET (in thousands of euros)                30/06/2009   31/12/2008
ASSETS
Net intangible fixed assets                             12 598     11 228
Net tangible fixed assets                                4 574      5 083
Non-current financial assets                             2 254      2 674
Assets from deferred assets                              1 713      1 950
Total non-current assets                                21 139     20 935
Inventory                                                  810      2 428
Client receivables                                      28 503     35 143
Investment securities                                    6 017     2  507
Liquid assets                                           10 935      8 967
Other current assets                                     5 858      7 001
Total current assets                                    52 123     56 046
TOTAL                                                   73 263     76 981

LIABILITIES
Capital                                                  3 682      3 680
Issue premium                                           63 881     63 790
Reserves                                               -17 699    -16 225
Result                                                   2 194     -1 809
Shareholders' equity                                    52 058     49 436
Non-current liabilities                                  1 100      1 298
Current liabilities                                     20 105     26 247
TOTAL                                                   73 263     76 981

Cash flow statement (in thousands of euros)            H1 2009    H1 2008
Operating transactions
Net income                                               2 194       -766
Depreciation of tangible and intangible fixed assets     5 492      4 579
Result from stocks options and assimilated               1 261      1 262
Taxes paid                                                -190        176
Sales of assets                                             79        270
Capitalized R&D expense                                 -1 784     -3 082
License acquisition                                     -3 114     -1 881
Other                                                       12        -73
Self-financing capacity                                  3 897        484

Change in inventories                                    1 619         39
Change in operating receivables                          7 086        781
Change in operating debts                               -5 154     -1 024
Change in the working capital requirement                3 551       -204

Operating cash flow                                      7 447        280

Transactions linked to investments
Acquisitions of intangible fixed assets                   -300       -213
Acquisitions of tangible fixed assets                     -960     -1 324
Acquisition of other fixed financial assets                -63       -155
Acquisition of controlling interests                        35         -6
Repayment of loans and other capital assets                123        346
Change in scope                                             45         85
Other transactions                                           2         57
Total transactions linked to investments                -1 119     -1 210

Total flows from financing transactions                     52        133

Change in cash flow                                      6 380       -797

Net cash flow at the beginning of the year              10 748     13 938
Impact of conversion differentials                        -227       -491
Net cash flow at the end of the year                    16 900     12 649

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