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(Press Release)

Durham, USA — May 13, 2005 – Funcom is proud to announce the opening of an office in Beijing, China. Serving as a bridgehead into Asia, and the Chinese market in particular, the office will bring Funcom closer to one of the most important online gaming markets. The Beijing office will have multiple functions, including a local development studio and a local representative office.

Funcom has so far focused on delivering outstanding online entertainment to customers in North America and Europe. The opening of the Chinese office marks a broadening of the company's scope. In addition to increasing Funcom's understanding of the Asian market through a local development and representation office, Funcom hopes to release Asian versions of upcoming online games like `Age of Conan – Hyborian Adventures'.

"We have studied the Asian market for years, and reached a level where it became natural to establish a local office in one of the most exciting online markets in the world", said Nicolay Nickelsen, Chief Representative for the Chinese office and Funcom's VP of Business Development. "We are humble about the fact that local companies have a far higher 

knowledge about the Asian culture and business. We are here to learn, increase our understanding and work closely with local partners. The online gaming industry has now evolved to a point where it's time to look at the world as one market, rather than segregating between east and west. The keys to success are strong local partners, local business models and local design solutions. We are now prepared to take these steps for our future online games, and look forward to establish closer relations in the Asian market."

The newly opened office in Beijing will be Funcom's fourth 

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office. Funcom currently have offices in Oslo, Norway (development, management, sales & marketing, operations), Durham, USA (development, sales & marketing, operations, customer service) and Zurich, Switzerland (financial).