Betfair chooses CryptoLogic

Betfair chooses CryptoLogic-developed software to expand into one of the Internet's biggest growth markets

Toronto, Canada - January 15, 2004.

CryptoLogic Inc., a leading software developer to the Internet gaming and e-commerce industries, is pleased to announce that the company is advancing its international growth with new customer, Betfair, the largest online betting exchange.

Through a license agreement with CryptoLogic subsidiary WagerLogic Limited, Betfair will introduce one of the world's most popular card games using WagerLogic's leading player-to-player poker technology.

"Betfair is an outstanding opportunity to increase CryptoLogic's leadership in the fast-growing online poker market," said Lewis Rose, CryptoLogic's President and CEO. "Betfair is in perfect step with CryptoLogic's strategy of doing business with the best in gaming. Together, we have a winning formula: Betfair's world-leading brand in betting exchanges, strong player base, and global marketing might - matched with our sophisticated poker solution. Betfair offers exciting promise as its online poker site is launched this year, and starts to build momentum."

"Online poker is a natural complement to Betfair's sports betting business. We are delighted to be working with a company of CryptoLogic's caliber and experience. In CryptoLogic, we identified a partner with top-class technology and one who shares our aspirations to create the best integrated poker platform on the Internet," said Steve Ives, Betfair's Business Development Director.

"With our proven poker software, Betfair is ideally positioned to capitalize on the large, high growth online poker market to our mutual benefit," added Jon Moss, WagerLogic's Director of Business Development.

Poker has quickly become a favorite with Internet users, attracting an increasing number of both casual players and seasoned professionals. The Internet poker market has grown six-fold in the past year to an estimated 10% of a $5 billion in revenue global online gaming market. Since the launch of its poker offering in October 2002, CryptoLogic has already earned a market-leading position and powers one of the top 10 poker rooms on the Web. Industry analysts estimate that these top 10 sites account for approximately 90% of the online poker market.

About CryptoLogic (www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Inc. is a leading software development company serving the global Internet gaming market. The company's proprietary technologies enable secure, high-speed financial transactions over the Internet. CryptoLogic continues to develop state-of-the-art Internet software applications for both the electronic commerce and Internet gaming industries. WagerLogic Ltd., a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to customers worldwide. For more information on WagerLogic, visit www.wagerlogic.com.

CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol: CRY), the Nasdaq National Market (symbol: CRYP) and the London Stock Exchange (symbol: CRP). There are currently 12.3 million common shares outstanding.

About Betfair (www.betfair.com)

Founded in 2000 and located and licensed in the United Kingdom, Betfair is the world's largest online betting exchange. A betting exchange is a bookmaker, which allows customers to bet at prices set by themselves, rather than having to accept prices dictated to them by the wagering operator. Using sophisticated technology modeled on the New York stock exchange, Betfair accepts bets placed by individuals on a wide range of sports, horse racing, entertainment and financial events, and immediately offsets them against counter-orders from other customers. All bets on Betfair are placed by individuals who want to bet for or against the outcome of a given event.

With turnover exceeding £50 million per week, Betfair has a user base from more than 80 countries worldwide. Its services are offered in multiple languages - English, Chinese, Danish, Finnish, German, Greek, Italian, Norwegian, and Swedish - and the company targets users from all over the world. At peak times, the exchange matches up to 12,000 bets a minute. The company's co-founders were jointly voted Ernst & Young Emerging Entrepreneur of the Year 2002. Betfair was awarded the Queen's Award for Enterprise, in the Innovation Category for 2003.

For more information, please contact:

At CryptoLogic, (416) 545-1455
Nancy Chan-Palmateer, Director of Communications
Jim Ryan, Chief Financial Officer

At Betfair.com, +44 20 8834 8000
Caspar Hill, Communications Executive, poker@betfair.com

At Argyle Rowland, (416) 968-7311 (North American media)
Daniel Tisch, ext 223/dtisch@argylerowland.com
Melissa Chang, ext. 239/melissa@argylerowland.com

At Financial Dynamics, +44 20 7831 3113 (UK media)
Juliet Clarke, juliet.clarke@fd.com
Edward Bridges, edward.bridges@fd.com