PARADOX ENTERTAINMENT ACQUIRES RIGHTS TO ROBERT E. HOWARD’S LIBRARY

Beverly Hills, CA (February 6, 2006) - Paradox Entertainment announced today that the company has acquired all rights to the library of author Robert E. Howard, the creator of Conan and over 800 other literary pieces. Paradox Entertainment has owned Howard’s Conan since 2002 and the new addition of the entire library gathers all of Howard’s writings under one company. The property was sold to Paradox Entertainment by the Texas-based Alla Ray Morris Generation Skipping Exemption Trust. The transaction is financed through Paradox Entertainment. Paradox Entertainment is represented by The Gersh Agency.

“We have been negotiating this transaction for a year and we are confident of its tremendous value. Through the acquisition we are controlling more rights which we are going to capitalize on, as we have done with Conan. I don’t think it’s possible to overestimate the magnitude of this purchase,” said Peter Sederowsky, Chairman of the Board at Paradox Entertainment AB.

As the rights owner, Paradox Entertainment will license properties to other companies, leaving commercialization to them. The main Conan licensees are expected to spend more than $200,000,000 dollars in development and advertising during the next few years.

“Robert E. Howard is undoubtedly one of the greatest fantasy authors of the 20th century, with an enormous list of works. It is mind-boggling that only four movies have been made based on his writings. Through this purchase we are securing an extensive production slate through long-term partnership in all areas of entertainment and media. We are already considering many projects and are excited for the future,” said Fredrik Malmberg, Head of Licensing & Creative Affairs at Paradox Entertainment Inc. in Los Angeles.

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Robert E. Howard was one of the greatest authors of his time and is considered the creator of the genre ”Sword & Sorcery”, perhaps most known through the character Conan. Despite his short literary career – Howard died at the mere age of 30, after only 12 years as a productive author – he wrote over 800 stories and poems. Howard’s breakthrough came when being published in the pulp magazine Weird Tales during the 1930s. His stories take us to such different surroundings as ancient Atlantis, the North African desert during WW1, hidden opium dens in dark alleys of the Big City, and northern Britain during the invasion of the Roman Legions.

Over the years, many authors have been inspired by Howard’s stories, and have praised his literary legacy, among them H. P. Lovecraft, Michael Moorcock, and Stephen King, who said about Howard: ”In his best work, Howard’s writing seems so highly charged with energy that it nearly gives off sparks. Stories such as ‘People of the Black Circle’ glow with the fierce and eldritch light of his frenzied intensity.”

Paradox Entertainment AB

Paradox Entertainment AB owns, develops and licenses mainly character-based properties. The company owns all stories and characters created by pulp author Robert E. Howard, among others Conan, Kull, Bran Mak Morn, Solomon Kane and Red Sonya. Paradox also owns the self-created property Mutant Chronicles. In all, the property portfolio consists of around 1000 stories and characters. 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 subsidiary Paradox Entertainment Inc., based in Los Angeles, USA. Paradox Entertainment AB is traded on the Stockholm NGM Equity list (PDXE, SE0000598054).

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