NINE-MONTH FINANCIAL STATEMENT

· Estimate for full-year earnings adjusted from 12.5 MSEK to 14 MSEK

· The net revenue during the first nine months 2005 was 21 MSEK

(compared to 16.1 MSEK for 2004).

· Earnings during the first nine months 2005 before tax was 11.9 MSEK

(compared to a loss of 0.6 MSEK for 2004).

· The company will be listed on the NGM Equity list on November 25, 2005

(The comparative information includes the Interactive division, which was sold in December 2004.)

“Our sales are continuing in a positive manner and our properties are developing strongly. We look forward to being listed on the NGM equity list on November 25, 2005. Paradox Entertainment has now reached the level where a listing is a natural step to take. We seek more exposure on the capital market that would give us the possibility to, if needed, strengthen the company’s financial resources, increase the flexibility and above all prepare for the acquisition of more attractive properties in the future,” said Peter Sederowsky, Chairman of the Board.

The estimated revenues of 22.8 MSEK are adjusted to 25 MSEK. The estimated earnings are adjusted to approx. 14 MSEK, assuming that the US currency remains on the present level.

During the later part of the period, Paradox Entertainment entered into a worldwide, multi-year Conan videogame licensing agreement with THQ. The agreement covers development for all current and next-gen systems, including Xbox 360 and Playstation 3, as well as PC, wireless and handheld platforms. Development has started.

“The extent of this deal is huge. In comparison, we are estimating the revenues from this transaction alone to exceed all our previous Conan revenues combined,” said Peter Sederowsky.

“THQ has already paid an advance, with an additional advance due at the start of principal photography of the next Conan movie. We expect to start receiving revenues from the video games in 2007,” said Fredrik Malmberg, Head of Licensing & Creative Affairs.

The full nine-month financial statement is available on www.paradox-entertainment.com.

For more information

Peter Sederowsky, Chairman

Tel: +1 (323) 655-1703, Cell: +1 (310) 409-6948

E-mail: peter.sederowsky@paradox-entertainment.com

Joakim Zetterberg, Communications/Investor Relations

Tel: +1 (323) 655-1708, Cell: +1 (310) 623-2918

E-mail: joakim.zetterberg@paradox-entertainment.com

Paradox Entertainment AB

Paradox Entertainment AB owns, develops and licenses over one hundred, mainly character-based, properties, among them Conan® and Mutant Chronicles®. Industries exploiting the company property portfolio include film, TV, book, comics, videogame, Internet/mobile/wireless, toys, apparel, and more. The business is mainly conducted through the wholly owned subsidiary Paradox Entertainment Inc., based in Los Angeles, USA. Paradox Entertainment AB is traded through Nordic OTC in Sweden until November 24, 2005. Starting November 25, 2005, the share will be traded on the NGM Equity list (PDXE, SE0000598054).

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(For complete interim report se attached file)