CryptoLogic Licenses Top Branded Casino Games to PartyGaming

  CryptoLogic Limited, (TSX: CRY)(TSX: CXY)(NASDAQ: CRYP)(LSE: CRP) a leading software developer to the global Internet gaming market, today announced a five-year licensing agreement with PartyGaming Plc, one of the world's largest online gaming operators.

CryptoLogic will initially provide PartyGaming with a suite of its top branded casino games, which have proven very successful with players and licensees alike. The company expects the games to be launched in the first quarter of 2009, adding significantly to next year's revenue.

Under the deal, PartyGaming will have the option to add any other CryptoLogic-powered casino games in the future. The agreement was made through WagerLogic Ltd., the wholly-owned subsidiary that licenses CryptoLogic software and services to leading gaming and entertainment brands.

"We are delighted to welcome PartyGaming as our latest partner. This is one of CryptoLogic's biggest customer wins of the year and an endorsement of the branded games element of our new strategy. It proves that when you combine great innovation and excellent execution, you get expansion," said Brian Hadfield, CryptoLogic's President and CEO. "PartyGaming has chosen six CryptoLogic games that represent four different partnerships with world-famous entertainment brands. It is a clear validation of CryptoLogic's branded gaming strategy - and our success in delivering a superior customer experience."

PartyGaming represents CryptoLogic's ninth new customer in 2008, joining an impressive list of established and emerging gaming brands that includes 888.com, Sky Betting and Gaming, Gaming Media Group (The Poker Channel), Maharajah Club, OPoker, Kurastica, Betjacks and Khel Galli.

"PartyGaming and CryptoLogic are two of the biggest names in Internet gaming - and we're excited to bring some of CryptoLogic's greatest games to our players for the first time," said Jim Ryan, PartyGaming's Chief Executive Officer. "This agreement reflects PartyGaming's strategy to broaden our product base - and grow our player base - through innovative alliances. Because these games will be great for our players, they will be good for our business."

Boasting more than 200 games, CryptoLogic has one of the most comprehensive casino suites on the Internet today. From popular casual games such as Sudoku, Cubis, and Bejeweled to multi-bonus and multi-jackpot games featuring some of the world's most famous action and entertainment characters, CryptoLogic has earned rave reviews from industry peers and players alike. In 2008, CryptoLogic earned Gambling Online Magazine's Top Casino Software award for the third consecutive year. Based on the votes of players around the world, it is widely considered the industry's top honour.

About CryptoLogic® (www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Limited is a 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. WagerLogic® Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to blue-chip customers who offer their games around the world to non-U.S. based players. For information on WagerLogic, please visit www.wagerlogic.com.

CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).

About PartyGaming (www.partygaming.com)

PartyGaming Plc is the world's largest listed online gaming operator. Founded in 1997, the Group is a constituent of the FTSE 250 share index and the FTSE4Good Index Series, which measures the performance of companies that meet globally recognised corporate responsibility standards. PartyGaming's shares are listed on the London Stock Exchange under the ticker PRTY. In the year to 31 December 2007, PartyGaming's continuing operations generated revenues of $476.0m and Clean EBITDA of $111.7m. PartyGaming's principal brands are PartyPoker.com, one of the world's largest online poker rooms, EmpirePoker.com, PartyCasino.com, the world's largest online casino, PartyBingo.com, PartyGammon.com, PartyBets.com, PartyMarkets.com and Gamebookers.com. None of the Group's sites accept real money customers located in the U.S.

PartyGaming is regulated and licensed by the Government of Gibraltar and by the Alderney Gambling Control Commission, is certified by GamCare as a socially responsible gaming operator and is also a member of the FTSE4Good share indices for the UK and Europe.

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release, which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.

Contacts: CryptoLogic Stephen Taylor Chief Financial Officer 353 (0) 1 234 0415 www.cryptologic.com Argyle Communications Karen Passmore (North American and gaming industry media) [phone] ext 228 [e-mail] Argyle Communications Daniel Tisch (North American and gaming industry media) [phone] ext 223 [e-mail] Corfin Communications Neil Thapar (UK media only) [phone] Corfin Communications Harry Chathli (UK media only) [phone] Corfin Communications Alexis Gore (UK media only) [phone]