Gravity Enters Into License and Distribution Agreement for Emil Chronicle Online in Mainland China

Business Wire, Jan 17, 2007

SEOUL, South Korea -- Gravity, Co., Ltd. (Nasdaq:GRVY) (the "Company"), an online game developer and publisher, announced that it has entered into a License and Distribution Agreement for Emil Chronicle Online (or ECO) in mainland China.

The agreement for China was entered into with a wholly-owned subsidiary of The9 Limited in China in January 2007, which is effective for 3 years from the commercial service date.

In November 2006, the Company entered into a software license and distribution agreement with Infocomm Asia Holdings Pte Ltd., an online game publisher based in Singapore, for ECO in Southeast Asia and Oceania, which includes Singapore, Malaysia, Brunei, Thailand, Philippines, Indonesia, Vietnam, Australia and New Zealand.

As a result of the agreement, the total revenue from ECO for the term of the agreement in these territories is expected to amount over US$ 6.8 million including license fees and minimum guaranteed payments.

Mr. Il Young Ryu, Chairman and Chief Executive Officer of Gravity, said, "We expect that ECO will present a wide appeal to worldwide game users who are familiar with the manga and animation culture. We are very much pleased with our recent first closed beta test in Korea, leading to such business accomplishments where the total expected revenue from our recent agreements already exceeds the amount paid for the global publishing rights for ECO. In addition, there is more potential depending on the success of ECO in these markets and Korea. We believe ECO fits into our global publishing strategy, which is to excavate high quality games throughout the world and publish these games through our global distribution network."

About GRAVITY Co., Ltd.

Based in Korea, Gravity is a developer and distributor of online games. Gravity's principal product, Ragnarok Online, is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 21 markets. For more information about Gravity, please visit http://www.gravity.co.kr.

About The9 Limited

The9 Limited is a leading online game operator in China. The9's business is primarily focused on operating and developing MMORPGs for the Chinese online game players market. The9 directly or through affiliates operates licensed MMORPGs, consisting of Blizzard Entertainment[R]'s World of Warcraft[R], MU[R] and Mystina Online[R] and its first proprietary MMORGP, Joyful Journey West, in China. It has also obtained exclusive licenses to operate additional MMORPGs in China, including Granado Espada[R], Soul of The Ultimate Nation[R], Guild Wars[R], Hellgate: London[R], Ragnarok Online 2[R] and Emil Chronicle Online[R]. In addition, The9 is also working on the development of a 3D fantasy MMORPG game, Fantasy Melody Online.

Forward-looking statements

Certain statements in this press release may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Please make reference to the Company's filings with the United States Securities and Exchange Commission for further information on what constitutes "forward-looking statements".