ARTICLES | April 2nd, 2007
10TACLE and MTV to launch multi-user 3D online world

10TACLE STUDIOS AG and Viacom Germany GmbH will launch their own multi-user 3D online world in 2008, using various brands and industrial property rights belonging to the music television station MTV. Multi-user 3D online worlds are three-dimensional Internet portals that can be used by an unlimited number of people simultaneously and interactively, such as World of Warcraft or Second Life.

Starting in 2008, the multi-user 3D online world will give Internet users access to, among other things, the classic content offered by the MTV Group, while offering a large number of online games. 10TACLE STUDIOS AG, Europe?s largest developer and producer of high-end computer and video games, will handle the technical implementation and operation of the multi-user 3D online world. MTV, whose popular content is available on all platforms relevant to its target groups, such as TV, online, broadband and mobile, will be responsible for target group communication and the editorial preparation of the content.

?In 10TACLE STUDIOS, we are delighted to have found an expert partner for the production of a wide variety of promising games using our popular MTV content?, said Joel Berger, Senior Vice President Digital Media & Network Development, Viacom Germany GmbH.

?The joint production and marketing of online games relating to the MTV brand world for the multi-user 3D online world will enable us to transfer the lifestyle and emotionality conveyed by the MTV brand to the online community.

MTV is an extremely strong brand with an enormous reach spanning 579 million households in 179 countries. I am certain that the new online world can rapidly achieve a similar status to Second Life. This project gives our Company access to a new and extremely promising market segment?, said Michele Pes, CEO of 10TACLE STUDIOS AG.

The licensing agreement will initially be entered into for five years and includes an extension option. Licenses will be granted for Germany, Austria and Switzerland, with additional countries in Europe and Asia to follow shortly. Pes believes 10TACLE STUDIOS AG?s international studio structure means it is optimally equipped in this area, too.

10TACLE STUDIOS AG expects total revenue of approx. ?20 million from its contract production of the project as a whole, and will set up additional in-house resources to develop the multi-user 3D online world and the games to be marketed via this platform. The Company is also expecting significant revenue from the operation and marketing of the online world as from 2008. Based on a conservative estimate of user numbers, 10TACLE STUDIOS AG is forecasting a positive EBIT effect of around ?5 million as from 2008, which is expected to increase in the following years.

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