PAYNOVA EXPANDS COOPERATION WITH MINDARK IN THE ENTROPIA UNIVERSE VIRTUAL WORLD

(NGM:PAY)

During October, Paynova will be supplying the first newly-developed payment service adapted for the online gaming segment. The launch will take place in cooperation with the Swedish company Mindark in their virtual world Entropia Universe.

Mindark operates the virtual world Entropia Universe, which is one of the world’s first MMOGs (Massive Multiplayer Online Game) with a real cash economy. The market growth for MMOG gaming for PC is estimated to reach over 30 per cent per annum by 2009. During 2006, the global payment volume was over SEK 30 billion, and this market is estimated to reach over SEK 80 billion by 2011. Since 2004, Paynova and Mindark have been in partnership, making it possible for participants in Entropia Universe to use Paynova’s payment service for payments both outside and within the virtual world.

During October 2007, cooperation between Mindark and Paynova will be expanded in order to increase the number of payment options within Entropia Universe. Participants will be offered payments via debit card, Internet bank and a number of local payment methods in Sweden, the Netherlands and Germany. At the same time, Paynova’s one2one additional service will be implemented, further simplifying participant payments both when entering and within the virtual world.

“Being able to accept payments over the Internet is a prerequisite for our entire business. Paynova has supplied us with a stable, secure payment service for a number of years. It’s great that we can now expand the cooperation with more payment methods and new functions. Paynova also gives us the option of accepting more payment methods as they become available without the need for further development from our side,” says Carl Uggla, Marketing Manager at Mindark.

“We have worked hard on preparing our new offer for online gaming. The payment service has only been in place a short time, and it is, therefore, particularly valuable to be able to implement it fully with a significant player within the segment. We view the expanded cooperation with Mindark as proof of the competitiveness of our new payment service and as an important basis for continued success in the growing online gaming segment,” says Karl Alberts, Marketing Manager at Paynova.

STRONG OFFER FOR GAMING COMPANIES WITHIN THE ONLINE GAMING SEGMENT

Paynova’s newly-developed one2one additional service is one of a small number on the market that supports the gaming industry’s two dominant business models: payment via subscription and payment via “pay-per-component.” Regardless of the business model or combination used, one2one also allows players to carry out transactions within the game using the same payment service. In addition, one2one can reduce fraud to very low levels.

Paynova’s payment service offers numerous benefits to online gaming companies. With Paynova, the proportion of new players who can continue playing by applying pay-per-component can be increased, while also strengthening the attraction of the game thanks to an improved gaming experience. Gaming companies can also reduce their costs associated with handling several payment services with different redeemers, reduce or eliminate payment fraud and completely avoid the costs of individual PCI certification (required for handling payments by Visa and MasterCard).

FOR FURTHER INFORMATION, PLEASE CONTACT:

Karl Alberts, Marketing Manager

Telephone: +46 (0)70-33 55 326

About Paynova

Paynova offers an international, account-based, one-stop-shop for payment services on the Internet. With Paynova as the single source, e-retailers get a turnkey payment service for 21 international and local payment methods in 11 languages and 8 currencies with consumer support in a security-certified interface (PCI). Consumers can open an online Account, a Paynova Wallet, for free, to make purchases simpler and more secure, as well as handling fund transfers between family members and friends. Paynova has been listed on NGM Equity since February 2004 and carries agreements with over 1.400 e-retailers, primarily in travel, retail and online games. For more information: www.paynova.com

About Entropia Universe

The heart of Entropia Universe is a distant planet named Calypso, which encompasses two continents with animal-filled wildernesses and large expanding cities that offer a variety of

entertainment and social interaction for its participants. In Entropia, participants can create their own persona, or avatar, via a character-generation system, and then have the option of choosing a suitable life and virtual existence for their avatar. Characters are able to enter the evolving worlds of Entropia Universe, which are full of unexplored and uncultivated lands. Participants can join a community or even create a civilization of their own. Entropia offers a new avenue for individuals to pursue dreams, fantasies, and adventures in an astoundingly 'real' virtual universe.

Entropia Universe was launched in January 2003 and has grown to over 630,000 registered accounts from 200 plus countries, its business model is entirely unique as the client software is

free to download from the internet and there are no monthly subscription fees. As the only virtual universe whose currency, the PED, has a fixed exchange rate of 10:1 with the US Dollar,

Entropia Universe provides a means for new players to immediately start exploring and earning cash without having to deposit money. The funds acquired in Entropia Universe can easily be withdrawn into real life cash.

In December 2004, Entropia Universe set a world record certified by the Guinness Book of World Records, when it sold a virtual Treasure Island for US $26,500, the largest virtual dollar amount spent, to 22-year-old Australian David Storey, a.k.a. "Deathifier." In May 2007, MindArk sold

five virtual banking licenses for over US $400,000 and among the buyers are real world banks and financial establishments, alongside with Entropia participants.

Entropia Universe is a registered trademark of MindArk PE AB. MindArk supports and monitors the services and maintenance of the Entropia Universe site. MindArk PE AB began in April of

2003 in Sweden, and has expanded to have partners throughout the world. Entropia Universe was launched in 2003 and has reached over 630,000 registered accounts. For more information or to download the free Entropia Universe software please visit www.entropiauniverse.com