CryptoLogic Inc., a leading software developer to the Internet gaming and e-commerce industries, announced today its financial results for the second quarter and six months ended June 30, 2003. Strong second quarter results exceeded expectations and signify that the company’s business continues to build on a solid platform of organic growth, international expansion and new
products.

“CryptoLogic continues to execute well, and the seasonably strong second quarter was our best
performance in the last year and a half,” said Lewis Rose, CryptoLogic’s President and CEO. “We’re
making meaningful strides in what continues to be a challenging market. At CryptoLogic, we’ve been
focusing on the fundamentals, and diversifying both our products and our geographic markets. Our
strategy is paying off with revenue up more than 20% and earnings up more than 25% over last year.”

CryptoLogic’s second quarter highlights included:

• Strong revenue and earnings performance resulted in diluted earnings per share of $0.21 that surpassed analysts’ consensus of $0.15;

• Continued favourable growth in overseas markets with licensees’ revenue from international sources rising to approximately 55% in the first half of 2003, up from almost 50% in the first quarter;

• Steady growth in poker and bingo revenue, together on track to exceed 10% of 2003 revenue, up from nil in the second quarter last year;

• Commenced the application process for listing and trading on the London Stock Exchange to leverage CryptoLogic’s strong roster of UK-based customers and operations, and to extend its reach into this favourable international market for online gaming.
Stronger-Than-Expected Q2 Performance (All financial figures are expressed in U.S. dollars)

In the second quarter, CryptoLogic surpassed expectations by recording $10.8 million in revenue, net income of $2.6 million and diluted earnings per share of $0.21. This also compared strongly to second quarter results in 2002, in which the company posted revenue of $8.9 million and net income of $2.0 million or $0.16 per diluted share before a non-recurring special charge, and a net loss of $7.8 million or $0.65 per diluted share after the special charge.

CryptoLogic continued to execute well on its strategic imperatives as reflected in the strength of its 2003 second quarter results. This better-than-expected performance was evidence of increased deposits driven by a stabilized base business, increased international penetration with existing and new customers, and marketing initiatives including the continued success of the company’s recently introduced poker and
bingo products.