Nival Interactive Acquires Targem Games

NIVAL INTERACTIVE
EXPANDS OPERATIONS WITH ACQUISITION OF TARGEM GAMES

May 12, 2005 – Nival Interactive, a leading international video game
developer, headquartered in the United States, is pleased to announce its
purchase of a controlling interest in Targem Games, one of Russia’s leading
game developers. The deal is part of Nival’s competitive strategy to create a
global video game development company that will produce next generation
console and wireless games with universal appeal, while maintaining its strong
position in the PC game market.

“We are actively seeking acquisitions and partnerships with the best
developers in order to share our resources, expertise and contacts to produce
world-class software entertainment. By combining Targem’s talented team with
ours, we can more aggressively pursue our goal of producing next generation
console titles, while continuing to produce world-class PC games”, said Sergey
Orlovskiy, President of Nival Interactive.

Stanislav Skorb, President of Targem Games, added, “This is an exciting
opportunity for Targem and one that will enable the team to implement more of
our creative ideas, while leveraging the resources and expertise of Nival. We
have terrific creative synergy and are excited about working on more projects
together.”

About Nival Interactive
Nival Interactive is an international video game developer with a staff of
over 180 employees. The company’s corporate offices are located in Fort
Lauderdale, Florida, and its main creative studio is based in Moscow, Russia.
Recently, Nival’s critical and commercial success is best represented by the
Blitzkrieg and Silent Storm series. Current projects include
Heroes of Might and Magic V, Blitzkrieg II, Night Watch
and Hammer & Sickle as well as several unannounced projects. At this
year’s Russian Game Developers Conference, Nival received “Best Developer
2005” and Heroes of Might and Magic V was named “Best Game 2005”. For
more information about Nival Interactive, please visit
www.nival.com

About Targem Games
Targem, founded in 2002, is based in Ekaterinburg, Russia. With a team of
40, Targem has produced titles for the PC, Pocket PC & Mobile platforms. Their
current projects include Hard Truck: Apocalyptic Wars, an Action RPG
set in a post-apocalyptic world where semi trucks have become the only way to
survive, as well as a yet unannounced title in partnership with Nival
Interactive. For more information about Targem Games, please visit
www.targem.ru