CryptoLogic Engages Leading U.S. Expert to Advance Entry Into Nevada & Other Key Internet Gaming Markets.

Business Editors

TORONTO--(BUSINESS WIRE)--Nov. 5, 2001

CryptoLogic (NASDAQ:CRYP) (TSE:CRY.)

Leading Software Supplier Committed to Safe, Secure & Regulated

Internet Gaming

As the movement toward safe, secure and regulated Internet gaming gathers momentum in the United States, CryptoLogic Inc., a leading software supplier to the online gaming and e-commerce industries, has engaged one of America's leading experts to advise the company as it advances its entry into Nevada and other promising U.S. markets.

Anthony N. Cabot, a partner with Lionel Sawyer & Collins, Nevada's largest private law firm, represents some of the largest organizations in the gaming and resort industries in the United States. The securing of Cabot's services signals CryptoLogic's ongoing commitment to work with the best of the best to expand the company's initiatives in major regulated online gaming environments.

"CryptoLogic is delighted to be working closely with Anthony Cabot, one of America's most respected gaming lawyers, as the Nevada law enabling Internet gaming moves forward," said Jean Noelting CryptoLogic's president and CEO. "With Mr. Cabot on the CryptoLogic team, we'll remain at the forefront of the movement to safe, secure and regulated gaming on the Internet - and we'll achieve our business goals."

Cabot's extensive gaming law and regulation experience is reflected in his current position as Chair of the Gaming Practice Group at Lionel Sawyer & Collins since 1995. He has written extensively on gaming law - online and land-based - including being the co-Editor-in-Chief of the Gaming Review, a founding member of the International Masters of Gaming Law Association and recently authored The Internet Gambling Report IV, which discusses the evolving conflict between technology and law. Mr. Cabot plays a vital role in maintaining CryptoLogic's leadership position of working with major brand name, land-based gaming companies in regulated jurisdictions around the world.

The market for online gaming is large and estimated to grow at over 35% annually. Experts predict the industry will grow to more than US$5 billion by 2003. CryptoLogic is already the leading software provider to the industry and is positioned to capitalize on its growth.

CryptoLogic has promoted safe, secure and responsible online gaming since its inception and continues to encourage regulators in the United Kingdom and the United States to establish fair and effective regulations. Driven by its conviction that a regulated environment is the best solution for all, the company continues to invest considerable time, resources and millions of dollars seeking compliance in regulated jurisdictions such as Australia, the Isle of Man, and Alderney.

CryptoLogic continues to be in the top percentile of public companies meeting its financial targets. The company's third quarter results topped financial projections with revenue rising 32% and net income increasing 69%.

About CryptoLogic Inc.

CryptoLogic Inc. is the 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. 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 13.1 million common shares outstanding (15.6 million shares fully diluted).

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.