CryptoLogic Announces Expectations For First Quarter 2000; 7% Growth for First Quarter Revenue; Historical Growth to Continue in Second Quarter.

Business Editors

TORONTO--(BUSINESS WIRE)--April 5, 2000

CryptoLogic Inc. (NASDAQ:CRYP)(TSE:CRY.), a leading supplier of software to the Internet gaming industry, today announced that its total revenue for the first quarter in 2000 is expected to be approximately US$8.9 million compared to US$8.3 million in the 1999 first quarter and US$8.6 million in the 1999 fourth quarter.

The Company's net income is expected to be US$4.2 million compared to US$5.5 million in the 1999 first quarter and US$4.7 million in the 1999 fourth quarter before unusual items. These results are due to the following factors:

       * William Hill's Internet casino went live on January 12, 2000
with their marketing program rollout. The number of users to the
William Hill casino since launch has exceeded CryptoLogic's
expectations. However, revenue derived from the William Hill online
casino will not have a major impact until the second quarter of 2000.
The industry's first major brand to offer Internet gaming, William
Hill is expected to contribute significantly to CryptoLogic's revenue
growth.
       * Version 4.0 Internet gaming software, which was to be released
in the first quarter is now scheduled for release in the second
quarter of 2000. As experienced in the 1999 first quarter with the
release of version 3.0, the release of a new version typically drives
an increase in revenue due to renewed interest in the new gaming
software from both new and existing players. With version 4.0,
CryptoLogic will widen its technological lead even further, surpassing
its competitors.
       * Increased expenditures in developing version 4.0 as well as
increased business relationship activities and expanding the company's
infrastructure enable CryptoLogic to maintain its market leadership
and attract major brand named organizations. These expenses
contributed to a decline in first quarter earnings, but are important
to fuel the Company's long-term growth.

As part of its Normal Course Issuer Bid, CryptoLogic has recently repurchased shares on the open market. At these current low market prices, the Company believes that its shares are undervalued in relation to their inherent worth and are a good investment.

"We are excited about the outlook for year 2000," said Andrew Rivkin, President and CEO. "We continue to make great strides in raising the bar in both technology and calibre of licensees. The new version 4.0 of our market leading software is due out shortly, and by attracting premier gaming operators such as William Hill in Europe and Jupiters in Australia, we're setting new growth standards for both CryptoLogic and the industry. We expect to see the positive effects of these initiatives starting in the second quarter."

Mr. Rivkin added, "We continue to have discussions with other brand name organizations in large world markets including Australia, Europe and Asia to further expand our international presence. We are confident that we will continue to lead the market in high performance in revenue, earnings, processing volumes and user base."

These preliminary first quarter results are estimates only and actual results may vary. Finalized results for the first quarter of fiscal 2000 will be reported at the end of April, 2000.

Analyst Conference Call

An analyst/shareholder conference call to discuss the preliminary results has been scheduled for 12:30 p.m. on Thursday, April 6, 2000. Interested parties should call either 800/478-9326 or 416/695-5801.

About CryptoLogic

CryptoLogic Inc. is a leading software development company serving the Internet gaming market. 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. There are currently 11.1 million common shares outstanding (15.6 million shares fully diluted).

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 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.