PARADOX ENTERTAINMENT SELLS MUTANT CHRONICLES MOVIE RIGHTS

Paradox Entertainment has sold the Mutant Chronicles movie rights to a New York-based production company. The movie is expected to go into production later this year.

The property Mutant Chronicles was successfully launched as board/role-playing, as well as a miniatures game, in the early nineties and spawned a flurry of licensed spin-offs such as comic books, video games, novelizations and a collectable card game (the latter which sold more than 170 million cards in 20 language editions worldwide). The property is now subject to an extensive re-launch across all media.

- We have for some time focused on the commercialization of our assets and Mutant Chronicles is such a “sleeping asset”. Mutant Chronicles has a good story and an exciting licensing potential. We are looking forward to the feature film and we are already talking to manufacturers of computer games, toys as well as collectible cards, says Peter Sederowsky, Executive Chairman of Paradox Entertainment.

More details, such as director, budget and shooting schedule will be announced by Paradox Entertainment and the production company during late summer 2005 in a joint press release.

For more information, contact:

Peter Sederowsky, Executive Chairman and CEO, Paradox Entertainment Inc., phone: +(818) 977-0490, e-mail: peter.sederowsky@paradox-entertainment.com.

Joakim Zetterberg, Investor Relations, Paradox Entertainment Inc., phone: +1 (818) 977-7376, e-mail: info@paradox-entertainment.com.

Paradox Entertainment AB (Ticker code: PDXE OTC)

Paradox Entertainment AB develops and licences out immaterial rights. The company is specialised in character-based entertainment and owns more than one hundred properties. The business is mainly operated through Paradox Entertainment Inc, based in Los Angeles, USA. The largest and most important properties are Conan the Barbarian and Mutant Chronicles, the movie rights to both being held by American production companies. Licensees pay a fee to the company, and in addition to the movie rights, revenue is generated through licensing out the rights to make e.g. videogames, books, comic books, mobile phone applications, toys and card games.

Paradox Entertainment AB (PDXE OTC, SE0000598054) is being traded through Nordic OTC. The trade is organized by Nordic Growth Market (NGM) with Mangold Fondkommission AB appointed as sponsor.

Listing name: PARADOX ENTERTAINMENT.

Ticker code: PDXE OTC.

ISIN-number: SE0000598054.

Block size: 1 000. List: Nordic OTC

Website: www.paradox-entertainment.com