New Playboy Internet Casino to Use CryptoLogic Software

Market Wire, May, 2006

CryptoLogic Inc. (TSX:CRY)(NASDAQ: CRYP)(LSE:CRP), a leading software developer to the global Internet gaming market, announced an exclusive three-year licensing contract to launch a new gaming site featuring Playboy, one of the world's most recognizable entertainment and lifestyle brands.

The agreement, made between CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, and Oceana Caribe Licensing NV, paves the way for a Playboy-branded Internet casino powered by CryptoLogic's award-winning casino software. WagerLogic will also provide a full range of services of e-cash management, marketing support and customer support services. The site will receive prominent placement in Playboy's international printed, online and media outlets. The agreement also enables unique, "money can't buy" promotions for players, including Playboy merchandise, invitations to Playboy-hosted events and trips to the legendary Playboy mansion.

Any online poker site launched under the Playboy name during the term of the contract will also make exclusive use of CryptoLogic software.

"With Playboy, CryptoLogic adds one of the most famous names in entertainment to its elite list of blue-chip Internet gaming brands," said Lewis Rose, CryptoLogic's President and CEO. "It's a winning combination that met our strict criteria: a recognized brand, established user base, and global marketing strength - paired with CryptoLogic's unparalleled casino software. It's also an exciting opportunity to strengthen CryptoLogic's leadership in the multi-billion-dollar Internet casino industry."

In keeping with CryptoLogic's strategy of geographic diversification, Playboy plans to market the site in markets around the world, excluding the United States. Playboy operates a growing international business, with 21 localized international editions of Playboy magazine, wireless content available in over 30 countries and 25,000 retail outlets carrying Playboy-branded products around the world.

"Playboy looks forward to rapidly expanding our broadband and wireless gaming initiatives. When we set out to find a partner for a new Playboy-branded Internet casino, CryptoLogic software was a natural fit," said Playboy's Chairman and CEO, Christie Hefner. "We needed a trusted, respected software provider like CryptoLogic who can deliver great entertainment with both integrity and innovation. The result will be a Playboy gaming site that promises an exceptional experience for players all over the world."

"Playboy is, quite simply, one of the world's most pre-eminent brands," said A.J. Slivinski, WagerLogic's Managing Director. "We're thrilled to provide software and support services for this Playboy-branded casino."

The Playboy Internet casino will join other top gaming sites using CryptoLogic-developed software, including InterCasino, William Hill, ukbetting and Littlewoods Gaming. CryptoLogic has introduced more than 50 new casino games since 2004, including Bejeweled, the wildly popular gem-matching game, and six multi-stage, multi-bonus and multi-jackpot games featuring Marvel Super Heroes such as The Hulk, Daredevil, X-Men, Blade and The Punisher. These games are proving to be among the most popular games with Internet players, accounting for more than 10 percent of licensees' casino revenue in March 2006. CryptoLogic's own patented online slot game, Millionaires Club(TM), is attracting significant play with its massive jackpot, which is currently over $2.5 million - the largest jackpot ever in the history of Internet gaming.

About CryptoLogic® ( www.cryptologic.com )

Focused on integrity and innovation, CryptoLogic Inc. is a world-leading, blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that is certified to strict standards similar to land-based gaming. CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol:CRY), on the NASDAQ National Market (symbol:CRYP), and on the Main Market of the London Stock Exchange (symbol:CRP).

WagerLogic Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to customers worldwide. For information on WagerLogic®, visit www.wagerlogic.com .

About Oceana Caribe Licensing NV and Playboy Enterprises Inc. ( www.playboyenterprises.com )

Oceana Caribe Licensing NV is a private operator in the Netherlands Antilles with the exclusive rights to the Playboy brand for use in its Internet gaming business.

Playboy Enterprises, Inc. (NYSE:PLA, PLA.A) is a brand-driven, international multimedia entertainment company that publishes editions of Playboy magazine around the world; operates Playboy and Spice television networks and distributes programming globally via DVD and a network of websites including Playboy.com, a leading men's lifestyle and entertainment website; and licenses the Playboy and Spice trademarks internationally for a range of consumer products and services.