PAYNOVA STRENGTHENS ITS POSITION IN ONLINE GAMING

Paynova has signed an agreement with online gaming developer and distributor GALA-NET.COM, which has operative bases in South Korea, Japan and the US. At the same time, negotiations are under way with several leading gaming companies. The high level of interest that has been noted for Paynova’s payment services within the online gaming segment at past trade fairs in Europe and Asia was further reinforced in connection with the E3 fair “Electronic Entertainment Expo” in Los Angeles between 9 and 12 May 2006.

Paynova is continuing to strengthen the position that it has built up in the rapidly-growing online gaming segment. Collaboration have been previously established with several renowned online gaming companies, including Entropia Universe, Habbo Hotel, King.com, Nintendo Club, GamersParadise/NinjasInPyjamas and Dreamhack.

ONE NEW AGREEMENT HAS BEEN SIGNED AND SEVERAL PROCESSES OF NEGOTIATION ARE ONGOING

In May, Paynova took its place at E³, the world’s largest fair for interactive entertainment and software. Its goal has been to follow up and develop collaboration and contacts from previous fairs in Europe, Asia and the US, as well as to meet the leading companies in the segment to win new collaboration agreements.

Levels of interest in Paynova’s payment services have been high and an agreement has already been signed with the online gaming distributor GALA-NET.COM. The collaboration is estimated to begin to generate transaction volumes for Paynova within a few months.

As a result of the fair, negotiations with several online gaming developers/distributors have come quite far, offering significant potential volumes for Paynova. In all, between three and six agreements are expected to be signed in the next few months, with start-up estimated this autumn.

DYNAMIC PAYMENT SERVICES BECOMING EVER MORE IMPORTANT FOR THE ONLINE GAMING COMPANIES

One of the current challenges faced by companies in the online gaming segment is to compensate for increased operating and development costs, while at the same time increasing the inflow of new users and decrease the number of defectors during the lifetime of the game, so-called “churning”.

Our business model and payment solution have a key part to play. Trends are now verging on the conventional income model, where revenue is generated by purchase of the game and subscription charges, gradually being supported with more dynamic models, based on sponsor funding or pay per component. This means that the player pays as he or she goes, according to the position in the game. There is also interest from game developers to facilitate and create separate income from trading between players, as well as also combining the game with a gambling/betting aspect. These trends, taken as a whole, mean that there is significant interest in more dynamic payment services, providing improved support to business models in the online gaming segment.

PAYNOVA IS WELL-POSTIONED IN THE GROWING GAMING SEGMENT

Paynova has previously identified the online gaming segment as a special area of priority, as its account-based payment service is eminently suitable for these types of applications.

“The market for international online games generates revenues of between USD 40 and 60 billion each year, and is growing by 30 to 50 percent annually. Safe online payment is, therefore, becoming more important throughout the world. Paynova’s payment services provide an important support when game developers and distributors develop their business models. With Paynova as a collaborator, they do not need to apply for separate PCI certification. Our payment services also provide the conditions for reduced operating costs, at the same time as we improve and simplify payment options for the players,” says Karl Alberts, Paynova’s Sales and Marketing Director.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Karl Alberts, Sales and Marketing Director

Telephone +46 (0)70-335 53 26

ABOUT PAYNOVA

Paynova offers an international, account-based payment service via the Internet. With Paynova as the only counterpart, e-retailers get a payment guarantee for around twenty payment options in 10 languages with 8 currencies in a security-certified interface (PCI). Consumers can open an account, a Paynova wallet, for free on the Internet to make purchases more secure and simpler, as well as look after transfers between family members, friends and acquaintances.

Paynova has an agreement with around 1,000 e-retailers. Most are found in the following prioritised segments: travel, retailing and media/network games. The company has been listed on NGM Equity since February 2004. For more information: www.paynova.com