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Flagship/Hanbitsoft Publishing Deal

(Press Release)

SEOUL, Korea – June 7, 2004 - Video games publisher, Hanbitsoft, Inc. and game developer, Flagship StudiosTM, announced today that the two companies have signed a publishing agreement to bring Flagship's first PC game to the Asian marketplace. Flagship Studios was founded in July 2003 by the creators of Diablo®, one of the best-selling PC game franchises of all time with worldwide sales of over 13 million copies.

“It is very exciting to have a chance to work with Flagship Studios, a company being built by the developers that worked on both the Diablo and Star Craft® franchises,” said Alex Kim, chief executive officer of Hanbitsoft. “Their experience in creating two of the most popular games in Korea demonstrates that they understand Asian gamers’ tastes, and I believe that their next work will be a big success here, and in the entire Asian marketplace. To support this endeavor, Hanbitsoft is assigning an exclusive team for the Asian marketplace to provide the best marketing and manage for best game.”

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The Diablo series is recognized in Korea as the archetype of today’s many online role-playing games. Although details have not yet been revealed, their upcoming game is expected to set the standards for the next generation of RPGs.

The publishing agreement will cover major storefront and online markets including Korea, China, Taiwan and other Asian countries (excluding Japan). Hanbitsoft will also gain the technical consultation of the Flagship development team, including Bill Roper who is regarded as a top developer in the games industry throughout Asia.

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“We have always thought very highly of Hanbitsoft’s marketing ability since our days with Blizzard,” said Bill Roper, chief executive officer of Flagship Studios. “40% of Blizzard’s games were sold in Korea, and the expertise and contribution made by Hanbit towards that success is undeniable. I believe that our game will receive the highest levels of attention and that our players will be well served by their experienced customer service groups and interaction with gamers in the Asian market.”

On 4th June, the founding membership of Flagship Studios began a five-day stay to Korea, visiting and experiencing specific Korean culture as well as gaming infrastructures such as PC Baangs and Pro Game Leagues.

About Flagship Studios

Flagship Studios is a creator of innovative entertainment software, designing games that focus on ease of play, replayablility and fun. The studio was formed in 2003 by former executives and developers from Blizzard North® and represents the creators of the worldwide, best-selling Diablo® franchise. With members that are renowned within the gaming industry, Flagship Studios embodies a team that has worked together for over a decade and have numerous #1-selling games and multiple Game of the Year awards to their credit. For more information about Flagship Studios log onto www.flagshipstudios.com.

About Hanbitsoft, Inc.

Established in 1999, Hanbitsoft is the leading game publisher in Korea with world record sales numbers of Star Craft® and Diablo II®. The company has been taking the top market share for last 5 years in PC game. Since 2000, Hanbitsoft expanded to online game business developing and publishing series of games including Tantra®, Pangya®, WYD®, and Survival Project®. In year 2002, Hanbitsoft established the first Korean-Chinese Joint venture in China and its online games are attracting many gamers in China, Taiwan and in Hong Kong. ‘For more information about Hanbitsoft please visit www.hanbitsoft.com’ (C) Warner Bros. Entertainment Inc. Harry Potter Publishing Rights (C) JKR.

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