Glu Announces Closing of Private Placement for Gross Proceeds of $13.5 Million

Glu Mobile Inc. (NASDAQ:GLUU), a publisher of mobile games, today announced that it has completed its previously announced private placement in which it received gross proceeds of approximately $13.5 million. Existing stockholders who participated in this financing included Greenway Capital, Cannell Capital, Cypress Capital, Granite Global Ventures, New Enterprise Associates, Scale Venture Partners and Stephens Investment Management.

“Today we have crossed an important milestone in Glu's development and believe our business plan to now be fully funded,” stated Niccolo de Masi, Chief Executive Officer of Glu. “We are very excited to have received the support from a large cross section of our existing stockholders in this private placement. This financing provides the working capital to advance our new strategic plan of persistent, cross-platform mobile games. We have an exciting roadmap which will roll out beginning in October of this year.”

The securities issued in the private placement have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration under the Securities Act and applicable state securities laws or an applicable exemption from those registration requirements. Glu has agreed to file a resale registration statement by September 26, 2010 that covers the resale of certain of the securities issued in the private placement.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security. The securities issued in the private placement were sold pursuant to an applicable exemption from the registration requirements of the Securities Act of 1933, as amended, and applicable state securities laws.

Cautions Regarding Forward-Looking Statements

This news release contains forward-looking statements, including the belief that our business plan is now fully funded, our expectation that the gross proceeds from the private placement will provide the working capital to advance our new strategic plan of persistent, cross-platform mobile games and our expectation that such games will be roll out beginning in October of this year. These forward-looking statements are subject to material risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Investors should consider important risk factors, which include: growth of smartphones and advanced networks does not grow as significantly as we anticipate or that we will be unable to capitalize on any such growth; the risk that our recently and newly launched games are less popular than anticipated; the risk that sales of our original intellectual property titles will not continue to favorably impact product mix; the risk that our newly released games will be of a quality less than desired by reviewers and consumers; the risk that the mobile games market, particularly with respect to social, persistent gaming, is smaller than anticipated; and other risks detailed under the caption "Risk Factors" in our Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 9, 2010 and our other SEC filings. You can locate these reports through our website at http://www.glu.com/investors. We are under no obligation, and expressly disclaim any obligation, to update or alter our forward-looking statements whether as a result of new information, future events or otherwise.