CryptoLogic Reports On Proposed Legislation.

TORONTO--(BUSINESS WIRE)--Nov. 22, 1999--

(TSE:CRY.)

CryptoLogic Inc. reported today that the U.S. Senate has passed legislation that bans some forms of Internet gaming, while expanding the reach of others. The "Internet Gambling Prohibition Act" (S. 692), introduced by Senator Jon Kyl (R-Ariz.), is a revised version of legislation that was passed by the Senate last year, but failed to become law.

A companion bill in the House of Representatives was recently introduced and has passed the Judiciary Subcommittee on Crime 5-3, which was divided among party lines. Business on the House bill will be taken up again in late January when congress reconvenes for the remainder of its two-year session. For those unfamiliar with the US legislative system, both the Senate and the House need to pass a bill with differences being worked out in a conference committee. The President must sign the final bill in order for it to become law. In this case, the Kyl bill (Senate) and the Goodlatte bill (House) are very different in nature, and therefore, the Company believes that it may be some time before this materializes, if at all.

The Senate's legislation has come under attack by groups ranging from privacy advocates and free market conservatives to Internet Service Providers, and groups concerned about problem gambling. The Department of Justice has also expressed extreme concern over the Kyl bill.

While titled the Internet Gambling Prohibition Act, the legislation specifically exempts horse racing, dog racing, state lotteries, Indian tribes, hotel-casinos, and a host of other gambling enterprises. Criticism has been levied against the bill for actually increasing the number of homes that will have access to in-home wagering.

CryptoLogic Inc. is a supplier of software to the Internet gaming Industry through its wholly owned subsidiary IOLL. IOLL licenses its software to Internet casino operators who hold valid Internet casino gaming licenses from the jurisdictions in which they are resident and from which they operate. IOLL's fourteen current licensees are located in Antigua, Curacao and Dominica. These are sovereign jurisdictions and they dispute the authority of the United States to preclude it from granting gaming licenses to its resident businesses. Several Australian states have also begun licensing Internet gaming, and do not consider themselves bound by a U.S. ban.

CryptoLogic Inc. is a software development company with leading proprietary technology enabling secure, reliable, high-speed, private 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. There are currently 8.6 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 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.