CryptoLogic Acquires Leading Online Gaming Portal--WinnerOnLine.

Business Editors

TORONTO--(BUSINESS WIRE)--Oct. 1, 2001

WinnerOnLine To Maintain Strict Independence for Fair, Honest and

Trusted Content While Offering Licensees a Superb Marketing Channel

CryptoLogic Inc. (NASDAQ:CRYP) (TSE:CRY.), a leading software supplier to the Internet gaming and e-commerce industries, today expanded its offering with the acquisition of the leading gaming content provider, WinnerOnLine, through CryptoLogic's licensing and services subsidiary, WagerLogic. WinnerOnLine (www.winneronline.com) has distinguished itself as one of the best gaming portals for players, providing independent information on the latest news, game tips, casinos and jackpots on the Internet. With over 12,000 pages of unique content and an unbiased bulletin board, WinnerOnLine attracts over 350,000 unique visitors each month and has developed a solid understanding of the e-gaming market. WinnerOnLine will retain its independence following the acquisition.

"WinnerOnLine's insightful gaming content and commitment to players provide an exceptional marketing channel that is consistent with CryptoLogic's strategy to offer licensees value-added services that foster loyal players," said Jean Noelting, president and CEO of CryptoLogic. "With over 1,400 gaming sites on the Internet today, this is a business that's driven by marketing - the ability to attract a growing and loyal user franchise is critical for our licensees."

The acquisition of WinnerOnLine creates valuable synergies as CryptoLogic deepens its relationships with some of the world's top land-based operators. The addition of player-focused content gives the company a superb channel to the user community, and follows CryptoLogic's investment in customer relationship management software that helps licensees establish one-to-one relationships with players.

"Equally exciting is the ability to accelerate CryptoLogic's entry into other gaming verticals such as bingo and poker," added Noelting. "In these markets, the offering of gaming content creates a point of difference and provides a central marketing portal that will help build the critical mass necessary to offer users greater choice and higher value jackpots."

"We are very enthusiastic to become part of the WagerLogic family," said Carey Chambers, president of WinnerOnLine. "With their support, WinnerOnLine will continue its dramatic growth and do what we do best - provide honest, trusted and independent content solidly focused on the user community. WinnerOnLine will continue to operate autonomously under my direction, but we can accelerate our expansion by gaining access to the large target audience of WagerLogic's licensees and the development of new verticals where little content currently exists."

The WinnerOnLine acquisition supports CryptoLogic's ongoing commitment to fair and regulated online Web entertainment that players can enjoy and trust. The company continues to be at the forefront of regulatory compliance, currently working through certification in Australia, Isle of Man and Alderney - and expects to be the first online gaming solution provider to be certified in multi-jurisdictions strictly regulated for online gaming by year-end 2001. CryptoLogic has always maintained that regulated, responsible Internet gaming is the best solution for consumers, licensees and governments and is constantly extending its regulatory and probity activities so as to subject itself to the same rigorous standards found in land-based gaming.

About CryptoLogic

CryptoLogic Inc. is the leading software development company serving the Internet gaming market. WagerLogic, a wholly owned subsidiary of CryptoLogic, is responsible for the licensing and support of its gaming software and services to customers around the world. The company's proprietary technologies enable secure, high-speed financial transactions over the Internet. CryptoLogic continues to innovate and develop state of the art Internet software applications for both the electronic commerce and Internet gaming industries.

CryptoLogic's common shares trade on the Toronto Stock Exchange under the symbol CRY and on the Nasdaq National Market under the symbol CRYP. There are currently 13.4 million common shares outstanding (15.7 million shares fully diluted). For more information, visit www.cryptologic.com and www.wagerlogic.com.

CRYPTOLOGIC FORWARD-LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.