19.05.2004 – 08:11

JoWooD Productions Software AG

euro adhoc: JoWooD Productions Software AG
JoWooD announces time table for entry of a strategic partner for development of the US market (E)

  Disclosure announcement transmitted by euro adhoc.
  The issuer is responsible for the content of this announcement.

At the annual shareholder’s meeting on April 22, 2004 JoWooD
presented its medium-term strategy which laid particular emphasis on
the improvement of the company’s sales performance in the US market. 
The previous business year saw a further increase in JoWooD’s already
significant market share in Germany and the adjacent European
regions.  With a 4.22 % market share JoWooD ranks # 5 (2002: # 6) in
the market for PC entertainment software.  JoWooD’s rather small
share of the global market for PC entertainment of about 0.8% and the
fact that the company has so far targeted the console market with
only limited effort explain why JoWooD’s share of the worldwide
market for entertainment software has, up to now, not exceeded the
per mill range. By restructuring its distribution JoWooD managed to
increase its US result significantly from losses in the previous
years to over EUR 2m, (unadjusted margin), in 2003.  However, with US
revenues of below EUR 3m, JoWooD’s sales in the industry’s biggest
single market still remain well below the company’s potential.

In order to reap the true potential of it’s proven product portfolio,
JoWooD is seeking a strategic alliance with partner with a strong
market presence in the US.  This partnership will go hand in hand
with the partner’s acquisition of a non-controlling stake in JoWooD
by way of a capital increase, and the co-publishing of the other
partner’s product portfolios by both partners.  In addition, JoWooD
will intensify its own international marketing activities.  The terms
for the capital increase will be decided at an extra ordinary
shareholder’s meeting on June 15, 2004.  The capital increase will be
conducted in two tranches.  The first tranche will be open only to
the strategic partner and will exclude subscription by existing
shareholders.  The second tranche will be offered to existing
shareholders at equal terms.  The capital increase is scheduled for
the second half of June and will be managed by Capital Bank - GRAWE
Gruppe AG.
The primary objective of the capital increase is to forge an alliance
with a strategic partner.  Therefore, the issue price shall not take
into account recent short-deviations in the stock price.
The strategic partner and details of the capital increase will be
announced at a press conference on May 26, 2004.

end of announcement        euro adhoc 19.05.2004

Further inquiry note:

JoWooD Productions Software AG
Dr. Michael Pistauer, Vorstand.
Karin Kraberger, Investor Relations
Tel.: +43 (0)3614 2966 1015
mailo:investor@jowood.com
http://www.jowood.com

Branche: Software
ISIN: AT0000747357
WKN: 074735
Index: ATX Prime, ViDX, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade
Baden-Württembergische Wertpapierbörse / free trade
Frankfurter Wertpapierbörse / free trade