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Wednesday 24 March, 2010


11% growth in sales - Tripling of current opera...

PR Newswire/Les Echos/

Paris, 23 March 2010

                                 2009 Annual Results
                                 11% growth in sales
                 Tripling of current operating income at EUR10.4M
                  Very sharp increase in net profit at EUR6.0M

2009 Annual Results

Gameloft's financial statement for the year ending 31 December 2009 breaks down
as follows:

In EUR millions                               2009        2008
Turnover                                     122.0       110.3
Other Income                                   0.3         0.3
Cost of goods sold                           -15.5       -11.1
R&D                                          -57.4       -57.6
Sales & Marketing                            -28.1       -30.1
Administration                                -9.2        -9.2
Other income and expenses                     -1.6         0.7
Current operating income*                     10.4         3.3
Stock-based compensation                      -2.7        -2.7
Other operational revenues and expenses        0.0        -0.3
Operating income                               7.7         0.4
Financial result                               0.4        -1.2
Tax expense                                   -2.0        -0.9
Group Share of Net Income                      6.0        -1.8

* Before stock-based compensation

Gameloft achieved consolidated revenues of EUR122.0 million for 2009, up by 11%
from the previous year. Mobile games accounted for 94% of the company's annual
sales, while the console game business covered the remaining 6%.

The solid growth in revenue and good cost control in the company's three
departments, Research & Development, Sales & Marketing and Administration, have
allowed Gameloft to triple its operating income in 2009. The current operating 
income for 2009 reached EUR10.4M compared to EUR3.3M in 2008. Therefore, the 
operating margin stands at 8.6%, in line with expectations.

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

The annual impact from expensing stock options is EUR2.7M. This charge has no
impact on the company's equity and cash level.

Interest income amounted to EUR0.4M and is comprised of exchange gains and
interest on the company's cash flow. Therefore, the net annual profit stands at
EUR6.0M, a clear improvement over 2008.

Healthy Financial Position 

Gameloft's financial position remains very solid. At 31 December 2009, the
company's equity stood at EUR59.9M, net cash was EUR19.8M and financial
indebtedness zero. Cash generation was particularly strong with over EUR9.0M in
additional cash flow generated during 2009. As a result, Gameloft has the
financial resources necessary to continue its rapid growth and take market share
around the world.

Outlook for 2010

• Gameloft should continue to win over substantial market share in traditional
  Java and Brew phones due in particular to the progressive withdrawal of a 
  large number of competitors.

• Gameloft will continue to benefit strongly from the fast adoption of
  Smartphones by consumers and from the arrival of new dynamic players in the
  market such as Apple and Palm. As such, the company has positioned itself in 
  the top ranks as a publisher on Apple's App Store with 60 iPhone games 
  released since July 2008 which represented 14% of the company's sales in 2009.

• Gameloft is one of the very few players in the market that has the resources
  and know-how allowing it to be present with downloadable content for the
  launch of all the new consoles (iPad, PlayStation Network, Nintendo DSiWare,
  Nintendo WiiWare, etc.).

Therefore, the company is expecting further growth in 2010 in terms of sales,
profitability and cash. In the long term, Gameloft seems in an ideal position to
benefit from the rapid emergence of the digital distribution of video games on
mobile telephones, tablets, consoles and from major technological innovations
brought to the market by companies such as Apple, Nokia, Sony and Nintendo.

Sales for the first quarter of 2010 will be published on 28 April 2010.

About Gameloft
Gameloft designs and publishes video games for mobile telephones and consoles
worldwide. Gameloft was founded in 1999 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 licensors 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
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).

Anne-Laure Desclèves
Investor Relations
Tel +331 5816 2082
Email: [email protected]

For more information, consult 

P&L (in thousands of euros)                         2009         2008
Revenues                                         121,972      110,332
Other revenue from the activity                      334          259
Cost of sales                                    -15,528      -11,129
R&D                                              -57,421      -57,568
Sales and Marketing                              -28,124      -30,068
Administration                                    -9,164       -9,196
Other                                             -1,629          714
Current operating income*                         10,439        3,344
Stock-based compensation                          -2,686       -2,696
Other operating revenue and expenses                 -41         -295
Operating income                                   7,712          352
Cost of net financial indebtedness                    88          197
Interest income                                    2,669        5,033
Interest expense                                  -2,312       -6,458
Financial result                                     445       -1,228
Tax expense                                       -2,040         -933
Employee profit-sharing                             -146            0
Net income                                         5,972       -1,809
. Group's share                                    5,978       -1,805
. minority interests                                  -6           -3

BALANCE SHEET (in thousands of euros)          31/12/2009     31/12/2008
Net intangible fixed assets                        12,602         11,228
Net tangible fixed assets                           4,579          5,083
Non-current financial assets                        1,948          2,674
Assets from deferred assets                         2,762          1,950
Total non-current assets                           21,892         20,935
Inventory                                             457          2,428
Client receivables                                 32,626         35,143
Cash                                               19,804         11,473
Other current assets                                8,674          7,001
Total current assets                               61,562         56,046
TOTAL                                              83,454         76,981


Capital                                             3,740          3,680
Issue premium                                      66,593         63,790
Reserves                                          -16,368        -16,225
Result                                              5,972         -1,809
Shareholders' equity                               59,936         49,436
Non-current liabilities                             1,639          1,298
Current liabilities                                21,878         26,247
TOTAL                                              83,454         76,981

Cash Flow Statement (in thousands euros)             2009           2008
Operating transactions
Net income                                          5,972         -1,809
Depreciation of assets and variation of provisions 12,483         11,403
Result from stocks options and assimilated          2,686          2,696
Taxes paid                                           -165           -568
Sales of assets                                        83            384
Capitalized R&D expense                            -4,601         -5,962
Licence acquisition                                -5,782         -3,751
Self-financing capacity                            10,675          2,393
Change in inventories                               1,971         -2,359
Change in operating receivables                        61         -7,053
Change in operating debts                          -3,690          5,811
Change in the working capital requirement          -1,657         -3,601

Operating cash flow                                 7,389            280

Transactions linked to investments
Acquisitions of intangible fixed assets              -718           -662
Acquisitions of tangible fixed assets              -2,362         -2,796
Acquisition of other fixed financial assets          -723           -371
Acquisition of controlling interests                  -11           -352
Repayment of loans and other capital assets           870            441
Change in scope                                        80            120
Other transactions                                    110             74
Total transactions linked to investments           -2,754         -3,546

Total flows from financing transactions             2,839            916

Change in cash flow                                 9,103         -3,838

Net cash flow at the beginning of the year         10,748         13,938
Impact of conversion differentials                   -102            649
Net cash flow at the end of the year               19,749         10,748

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