WARSAW, FEBRUARY 18, 2008 – CD Projekt and Metropolis Software announced that they have signed an investment agreement, under which CD Projekt will become the majority owner of Metropolis Software. Combining the strengths of both companies is a very important step in realisation of CD Projekt’s strategy, which includes becoming a leading publisher delivering high-budget, ambitious and creative projects that ready to compete with the world’s biggest productions.

To date, CD Projekt has developed one title, the hit PC role-playing game, The Witcher. Merging with Metropolis and dividing the CD Projekt RED team into two units, CD Projekt now has are three development teams working on new AAA game projects.

CD Projekt’s debut game, The Witcher, has been a worldwide success. After several years of development by dozens of people at the CD Projekt RED studio, as well as a record budget for a Polish media product, The Witcher launched to much critical and commercial success. To date, The Witcher has earned more than 40 awards, including prestigious awards like Best PC RPG of the Year at IGN.com, GameSpy and the US edition of PC Gamer, as well as Gamespot’s Readers’ Choice award for Best RPG. Rave reviews from fans and media have translated into excellent sales results, as the game has sold more than 600,000 copies around the world.

Metropolis Software has been a leading Polish game developer for years and is the longest operating game-development studio in the country. Its catalog includes Gorky 17 and last year’s Infernal. The latest Metropolis production is THEY, a next-generation mystery first-person shooter set on a near-future Earth that has been ruined by war. What makes THEY unique is that it combines an involving story with the best characteristics of action games. Thanks to the emphasis on an engaging plot, THEY has a chance to join the small and elite circle of FPS games whose involving story is the key element driving the player to keep playing for hours on end. The game’s world is developed on the basis of Metropolis’ new proprietary game engine, benefiting from all the latest technologies used in video games software. The game is designed for PC and next-gen consoles, and is scheduled for release in 2009.

The fusion of the two companies was commented on by Michał Kiciński, CD Projekt Joint CEO: “I’m very happy that we managed to combine the strengths of two key development teams in Poland. Metropolis and CD Projekt have many values in common: we believe that the success of our products depends on innovative character and atmosphere, as well as uncompromising care of the highest quality. In the games business, this latter element is particularly difficult to achieve by independent teams. It is often the case that finance — and not the developers’ vision — that determines the final shape and quality of the project. CD Projekt was an atypical company from the very beginning – the realisation of our plans is preferred to simply earning a profit. Now, thanks to our financial reserves from the success of The Witcher and CD Projekt’s publishing business, Metropolis will have much more creative freedom. I’m sure that thanks to that, Metropolis will develop their dream game and will soon join the upper echelon of game developers.”

Grzegorz Miechowski, Metropolis Software Joint CEO: “This deal is great news for Metropolis. Thanks to this fusion, we have come together to become the developer with the biggest potential in this part of Europe. We will develop our future games on a grand scale – a scale which, in Poland, was previously only available for The Witcher. I believe that thanks to CD Projekt’s support, THEY will have the chance to take the FPS genre by storm, just as The Witcher did in the RPG genre.”

Michał Kiciński – CD Projekt Joint CEO, talked about the influence of the fusion on Polish game developers and about the chances which Polish productions have on the world market: “I believe, that after many years of small share of Polish developers in video games world market, it is time for changes. There is great creative potential in Poland and there is no reason for games developed in Poland not to be able to compete with the biggest world hits. CD Projekt, as the biggest company in gaming business in central-eastern Europe, has the chance to have its contribution to this process. Our debut “The Witcher” proved it possible, winning in many polls and competitions over products developed by very titled teams.”

Piotr Nielubowicz, Vice-president for Strategic Finances of CD Projekt group, had the following to say about the deal: “It’s the first business deal of this kind in our history and, at the same time, it’s another big step in our company’s expansion. Simultaneously, it’s one of the steps in our plans for our stock market debut. Metropolis Software is an experienced and thriving team. I’m sure that our financial contribution and experience on an international level will guarantee the development of many fantastic games of the highest caliber. I believe that together with Metropolis Software we will succeed in realising a strategy that will deliver unique value to future investors.”

The latest graphic art presenting the first joint project – “THEY” game – are available at:

http://www.metropolis-software.com/screens/THEY_screenshot_1.jpg

http://www.metropolis-software.com/screens/THEY_screenshot_2.jpg

We also encourage you to watch additional movie about fusion of Metropolis and CD Projekt:

http://pl.youtube.com/watch?v=5W6I98HqUI0

Established in 1994, CD Projekt is the biggest PC games distributor in Central Europe. It is known among gamers for high professionalism and many pioneering projects changing local markets. It was the first company in the region fully localising PC games, including the biggest RPG projects like Baldur’s Gate, Torment or Gothic series. Polish language versions of those games are lauded by players as premiere models for the localisation process. CD Projekt, as a distributor, introduces to the central European markets products of such companies like Microsoft, NCSoft, Ubisoft, Activision, SEGA, THQ, Vivendi Universal Games, Disney, Konami. Distribution is only one area of CD Projekt group’s activity. In the beginning of 2002, CD Projekt RED, a game developer, was created. Including “The Witcher”, CD Projekt sold 3.7 million games with CDP logo in 2007. Next to CD Projekt RED, CD Projekt group includes also CD Projekt Localisation Centre which is offering professional games localisation service to companies from all over the world (www.localisation.cdprojekt.com) and gram.pl Ltd which is responsible for running          web portal and on-line shop at www.gram.pl. Currently, CD Projekt is a group of companies operating in electronic entertainment industry, employing over 300 people altogether, with annual turnover coming to 55 million USD (2007). CD Projekt group’s mission is less about the realisation of business goals than the realisation of dreams and delivering products that cater to the needs and desires of gamers around the world. An important value of the company is also the pursuit of unique and landmark projects. Every year, the company’s turnover has been at least 30% higher and such growth is planned to continue in 2008. You can find more information about CD Projekt at www.cdprojekt.pl. Since the beginning of February 2008 CD Projekt group will also include Metropolis Software.

CD Projekt RED was established in February 2002 as the sister company of CD Projekt. CD Projekt RED’s mission is to become one of leading RPG developers in the world, developing games that combine the best trade practices with original ideas. One of the company’s guiding values is working in close contact with the players and listening and reacting to their opinions, both in the scope of developed games and the methods of delivering them to gamers’ hands. The studio’s first game is “The Witcher”, a title warmly welcomed by fans of the genre and showered with awards by professional media. To this day, “The Witcher” won over 40 distinctions, including prestigious awards like “IGN’s Best PC RPG”, “GameSpy PC RPG of the Year” and “Gamespot Readers’ Choice Winner – Best RPG”. During only three months since the premiere, 600,000 people all over the world purchased the game. CD Projekt RED benefits from experience and financial support of CD Projekt’s publishing arm, the largest PC games distributor in Central Europe. Currently, CD Projekt RED consists of 70 people working on “The Witcher: Enhanced Edition” and another, yet unannounced, project. More information is available at www.thewitcher.com.

Metropolis Software Ltd is one of leading game developers in Poland and at the same time the longest operating company of this kind in the country. The company has huge experience in video games development and has 11 finished projects on their account. The latest projects of Metropolis include warmly welcomed “Gorky” series and, released last year, “Infernal”. Since its establishment, the company’s philosophy was creating original and unique games basing on their own, continuously developed, technology. During its activity, the company cooperated with the biggest world publishers, including Atari, Ubisoft or, lately, Eidos. Currently the company is working on very promising action game “THEY”, which is developed for PC and next-gen consoles. In the beginning of February 2008 the company will join CD Projekt group.