Digital Illusions Interim report January-June 2006

Result after tax for the first half-year amounted to SEK –5.7m.

• Net revenues for the first half-year 2006 amounted to SEK 97.4m, representing a decrease of 5 percent compared with the same period 2005 (SEK 102.6m). Total operating revenues amounted to SEK 98.2m (SEK 103.6m). • The loss after financial items for the first half-year was SEK –7.7m (SEK 20.1m). Costs for the merger with Electronic Arts and the Company’s move to new offices burdened the first half-year with SEK 6m and SEK 3m respectively. • The loss after tax for the first half-year 2006 amounted to SEK –5.7m (SEK 14.5m), representing SEK –0.56 per share (SEK 1.43). • Net revenues for the second quarter 2006 amounted to SEK 50.8m, representing a decrease of 23 percent compared with the same period 2005 (SEK 66.4m). The loss after financial items for the period April–June 2006 was SEK –6.6m, and thereby decreased by SEK 33.0m compared with the same period 2005 (SEK 26.4m). • Royalties stood for 45 percent of Digital Illusions' total revenues in the first halfyear 2006. In the second quarter 2006, royalty revenues amounted to SEK 22.2m and represented 43 percent of the Company's total revenues. • The Annual General Meeting of Shareholders held on May 24, 2006 resolved to approve the merger plan proposed by Digital Illusions and Electronic Arts EA Holding AB. According to the merger plan, Digital Illusions will be absorbed by Electronic Arts Holding AB, upon which the shareholders of Digital Illusions will receive cash compensation of SEK 67.50 for each share held. The merger is expected to be completed in September 2006. • The Stockholm offices moved at the end of June 2006 to what is known as the ‘‘Glashuset’’ building located at Slussen in Stockholm.