NCsoft Records Brisk Sales Growth in Japan

September 20, 2006

NCsoft
Records Brisk Sales Growth in Japan

Company sets new monthly record for sales
after entering Japanese market five years ago; Sales continue to outpace average
online game market growth in Japan

NCsoft® Corporation, the world’s leading
developer and publisher of online computer games, today announced that it set a
new record in monthly sales in Japan five years after establishing a local
office there. In August, NC Japan recorded monthly revenues of approximately 430
million yen (about 3.5 billion Korean Won), nearly 10 times the average monthly
revenue of 2002 when the company first began commercial services of Lineage®.

NC Japan’s upward sales movement is attracting
attention because it is outpacing the average growth rate of the local online
game sector. Along with mobile games, the online game sector is showing the most
rapid expansion in Japan. NC Japan expects to easily reach its sales target of
4.4 billion yen for the year, representing 40% growth over last year and 1000%
growth over 2002.

Katsuya Ishii, vice president of strategic
planning at NC Japan, said, “Lineage II, which marked two years of service in
Japan early this summer, has been showing a steady increase in the number of
concurrent users despite the fact that its monthly charge is double that of
other similar games. The game’s positioning as a premium MMO game has greatly
contributed to our growth in sales.”

Multiple factors led to Lineage II’s success in
Japan. The game’s early entry into the Japanese market came at a time when there
were no significant 3D MMORPGs. Also Lineage II’s realistic and impressive
graphics were well received by Japanese gamers accustomed to the high visual
standards found in console games. In addition, NC Japan partnered with multiple
computer hardware companies to showcase PCs specially made for Lineage II
players. The promotions were a boost to the Japanese PC market and expanded the
online computer games market.

Tokyo-based NC Japan is a joint venture
responsible for providing services and marketing for NCsoft games while the
wholly owned development studio NCsoft Japan is in Osaka. Japan accounts for
approximately 20% of total overseas sales for NCsoft Corp.

[Appendix]

(unit:
million USD)

		2002	2003	2004	2005
Online games market in Japan	Market size	61	131	221	289
	Growth rate	–	113%	68.70%	30.80%
NCsoft Japan revenue	Market size	4.62	9.83	21.39	31.73
	Growth rate	–	113%	118%	48%