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GFI/Russobit-M merger: strive for new market segments.

Moscow, Russia, May 20, 2008 - Russian Video Game Market specialists "Russobit-M" and "Game Factory Interactive" have started a merger process, that will result in a holding with an annual revenue of over $45 mln and staff more than 350 people. The new holding aims an active development of new market segments, like online, console and casual games in first turn.

According to Irina Mizrakhi,«Russobit-M» President, the main reason for merger is the wish to enter and develop the MMORPG (massive multiplayer online role playing games), console and casual games market segments, which are both new to the companies. Alongside with this, the holding intends in forcing PC games digital distribution. The company has good prospects in this area, as it was the first to open Game-on-Demand service on www.GamePitStop.ru and is now the segment leader.

Specially created BestWay company will become the managing company of the newborn holding but so far the companies remain relatively independent. The reason for this is a totally different inner structure, bringing together‘strict vertical’ of Russobit-M and a network of small independent GFI subsidiaries.

‘The consolidation alike will result in a positive synergetic effect, allowing its members to cut down expenses on games promotion, for example’– says iKS-Consulting analyst Yelena Krylova.

In 2007 the total share of the Russian PC games market was estimated $430-450 mln, including about $60 mln for MMOG share and $10-15 mln for casual games share. Several years running the game market is showing strong growth up to 100% a year. According to the experts’ opinion, the market is not divided yet, and it is relatively easy to enter it.

About Russobit-M

‘Russobit-M’ was founded in 1999. Specializes in PC games publishing and distribution. The distribution network covers about 1500 in 600 towns along Russia and former Soviet countries. The company market share is about 12%, 2007 revenue– over $32 mln.

About GFI

GFI was founded in 2003. Initially specializing in developing, licensing and localization of PC games only, it opens a mobile games department in 2005. A year later the 1st Russian digital distribution shop www.Gamepitstop.ru is open. In 2007 GFI launches TurboGames.ru game portal and casual games developing studio. Among GFI’s in-home projects are: "Officers", "Hired Guns: The Jagged Edge", "Jagged Farm: Birth of a Hero",“Gluk’Oza: Action” etc. GFI’s revenue is about $5 mln.

GFI PR Contact

Nataly Malceva

+7 495 660 5751

pr@gfi.su