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NCsoft, Cryptic Studios and CDS Ink Book Deal

Austin, TEXAS, August 12, 2004-NCsoft® Corporation, the world's leading developer and publisher of online computer games, Cryptic Studios and CDS Books, the publishing arm of CDS, Inc., the largest independent service provider to the book publishing industry, announced today the inception of a multi-year, multi-book licensing agreement for CDS to publish a series of books based on the world of NCsoft's successful online computer game, City of Heroes(tm).

City of Heroes is the comic book-inspired online computer game from developer Cryptic Studios(tm). Players choose from a multitude of costume options and powers to create a unique hero that can join other players in protecting the fictional Paragon City(tm) from villains. City of Heroes has been a commercial hit and a favorite of critics since its release in late April. In only three months the game reached 180,000 active subscribers and topped computer game sales charts.

The first book, The Web of Arachnos, is expected in late 2005. It will detail the origins of Statesman, the signature hero of Paragon City, and will provide readers with some of the shadowy beginnings of one of City of Heroes' first villain groups.

"In the short amount of time since its release, City of Heroes has proven to be the fastest growing massive multiplayer role playing game in the computer game industry," said Hope Matthiessen, associate publisher of CDS Books. "We couldn't be happier working with NCsoft, Cryptic Studios and, of course, the City of Heroes property. We think the game's back story and the excitement generated by the fans provide a perfect combination for a successful series of books."

"This is indicative of the enthusiasm that is building around the City of Heroes property in the three and a half months since we launched the product," said Robert Garriott, president of NCsoft North America. "We're thrilled to partner with CDS. They have excellent experience and a proven track record in the book publishing and distribution business."

The City of Heroes game is available at major North American computer game retail outlets at a suggested retail price of US$49.99, which includes the first month of online game play. After the first month, players will be charged a monthly subscription fee of US$14.95. Sixty-day game time cards are available at many North American retailers for a suggested retail price of US$29.99. The game is rated Teen by the Entertainment Software Rating Board.

More information about City of Heroes is available at http://www.cityofheroes.com .

About NCsoft - North America

NCsoft - North America (NC-NA) is headquartered in Austin, Texas and is part of Korea-based NCsoft Corporation. NC-NA has development and administrative offices in Texas and California. The company also works with NCsoft subsidiaries and third party developers throughout North America to develop and publish innovative online entertainment software products. More information about NCsoft - North America can be found at http://www.PlayNC.com .

About Cryptic Studios

Cryptic Studios, Inc., located in San Jose, California, was established in July of 2000 and is an independent developer of massively multiplayer online games for the PC and next generation consoles. Its first game, City of Heroes, launched in April 2004. The game takes place in a virtual world where thousands of people play simultaneously, take on the role of super-powered heroes, fight villains and help create a dynamic story in a visually-stunning, 3-D graphical world. For more information on Cryptic Studios go to http://www.crypticstudios.com .

About CDS

Established in 1999 by the executive team of one of Random House's leading divisions, CDS is now the largest independent provider of distribution and fulfillment services to the book publishing industry. CDS Books began publishing in 2003, and its list to date includes such titles as the bestselling Secrets of the Code: The Unauthorized Guide to the Mysteries Behind the Da Vinci Code, The Highwayman by R.A. Salvatore and A Son Called Gabriel by Damian McNicholl. CDS operates out of New York City, with its distribution facility located in Jackson, Tennessee. NCsoft, the interlocking NC logo and all associated NCsoft logos and designs are trademarks or registered trademarks of NCsoft Corporation. City of Heroes, Paragon City and all associated City of Heroes logos are trademarks or registered trademarks of NCsoft Corporation and Cryptic Studios, Inc. Cryptic Studios is a trademark of Cryptic Studios, Inc. All other trademarks are the property of their respective owners.