Glu Mobile Updates Guidance to Include Recent Acquisition of Superscape; Provides Further Update of Tender Offer

  
    
  
  
    
      Glu Mobile Inc. (“Glu”) 
      (NASDAQ:GLUU) today announced that as of 3:00 p.m. GMT on March 20, 
      2008, it had received valid acceptances representing approximately 
      92.97% of the issued share capital of Superscape Group plc (“Superscape”). 
      As such, the Company has applied the provisions of sections 979 to 991 
      (inclusive) of the Companies Act 2006 to acquire compulsorily all 
      remaining Superscape shares on the same terms as the tender offer.
    
    
      Greg Ballard, president and chief executive officer, Glu, commented, “We’re 
      excited to be joining forces with Superscape, a pioneer in the mobile 
      games industry. Superscape’s strong heritage 
      in 3D technology, high-quality original titles and innovative white 
      label programs complement our existing world-class operations. This 
      acquisition is an important achievement in becoming the leading mobile 
      games publisher in the world.”
    
    
      Rocky Pimentel, chief financial officer, Glu, added, “We 
      expect Superscape will have a positive impact on our financial results. 
      While the integration of Superscape will continue through most of this 
      year, we currently anticipate that the acquisition will be neutral to 
      non-GAAP earnings until the fourth quarter, at which time it will become 
      accretive. Accordingly, we are raising our full year guidance.”
    
    
      The Company is providing guidance today to reflect Superscape’s 
      expected contribution to Glu for the first quarter and the full year 
      2008. Because Glu declared the tender offer unconditional in all 
      respects on March 7, 2008, Superscape’s 
      results will be consolidated into Glu’s 
      financial results as of that date. Furthermore, although Glu expects to 
      ultimately acquire 100% of the outstanding shares of Superscape, the 
      Company will record a minority interest to reflect the portion of shares 
      that it does not own until it has acquired 100% of the outstanding 
      shares.
    
    
      On February 11, 2008, the Company provided guidance for the first 
      quarter, ending March 31, 2008, of revenue in the range of $18.0 million 
      to $18.4 million, GAAP net loss of ($0.17) to ($0.18) per basic share, 
      and non-GAAP net loss of ($0.04) to ($0.05) per basic share. Today, Glu 
      stated that it expects to exceed its prior guidance on revenue for the 
      first quarter of fiscal 2008 and reported that sales of certain Hasbro 
      classic titles had been continued through March 31, 2008, a later date 
      than previously expected. These continuations contributed modest 
      additional one-time game download revenue incremental to Glu’s 
      prior guidance. The Company stated that it will not receive any further 
      extensions of the licenses for the Hasbro classics. In addition, 
      Superscape will contribute approximately three weeks of financial 
      results to Glu’s first quarter results. Glu 
      currently expects that this contribution from Superscape will add 
      approximately $800,000 of incremental revenue to the first quarter. On a 
      non-GAAP basis, the Company expects the acquisition to be neutral to 
      earnings. The acquisition will be dilutive to GAAP earnings due to the 
      impact of non-cash amortization of intangibles, acquired in process 
      research and development, stock based compensation and other 
      transitionary expenses.
    
    
      On February 11, 2008, the Company provided guidance for the 2008 fiscal 
      year, ending December 31, 2008, of revenue in the range of $83.0 million 
      to $87.0 million, GAAP net loss of ($0.31) to ($0.36) per basic share, 
      and non-GAAP net income of $0.15 to $0.20 per diluted share. Superscape 
      will contribute approximately ten months of financial results to Glu’s 
      2008 results. Glu is currently completing its evaluation of Superscape’s 
      2008 title plans including eliminating overlapping titles. However, for 
      reference, in its fiscal year ended January 31, 2008, which represents a 
      full twelve months, Superscape will report unaudited revenue of 
      approximately $14.5 million. Glu currently expects that Superscape will 
      add approximately $12 million of revenue for the full year, reflecting 
      approximately 10 months of revenue beginning on March 7, 2008. On a 
      non-GAAP basis, the Company expects the acquisition will add 
      approximately $0.01 per diluted share. The acquisition will be dilutive 
      to 2008 GAAP earnings due to the impact of non-cash amortization of 
      intangibles, acquired in process research and development, stock-based 
      compensation and other transitionary expenses.
    
    
      Glu will hold a conference call at 2:00 p.m. Pacific Time (5:00 p.m. 
      Eastern Time) on Monday, March 24, 2008 to discuss guidance for the 
      Company’s acquisition of Superscape.
    
    
      Please dial 800.299.7089, or if outside the U.S., 617.801.9714 with 
      passcode 78593871 to access the conference call at least five 
      minutes prior to the 2:00 p.m. PT start time. A live webcast and replay 
      of the call will also be available at http://www.glu.com/corp/Pages/investors.aspx 
      under the Investor Calendar and Webcasts menu. An audio replay will be 
      available between 4:00 p.m. PT, March 24, 2008, and 11:59 p.m. PT, April 
      1, 2008, by calling 888-286-8010, or 617-801-6888, with passcode 
      79538667.
    
    
      About Glu
    
    
      Glu (NASDAQ:GLUU) is a leading global publisher of mobile games. Its 
      portfolio of top-rated games includes original titles Super K.O. 
      Boxing!, Stranded and Brain Genius, and titles based on major brands 
      from partners including Atari, Activision, Konami, Harrah's, Hasbro, 
      Warner Bros., Microsoft, PlayFirst, PopCap Games, SEGA and Sony. Founded 
      in 2001, Glu is based in San Mateo, Calif. and has offices in London, 
      France, Germany, Spain, Italy, Hong Kong, China, Sao Paulo and Chile. 
      Consumers can find high-quality, fresh entertainment created exclusively 
      for their mobile phones wherever they see the 'g' character logo or at www.glu.com.
    
    
      About Superscape
    
    
      Superscape is the world's leading publisher of 3D mobile games. 
      Superscape is quoted on the London Stock Exchange and has corporate 
      offices in San Clemente, California (USA) and Fleet, Hampshire (UK), 
      together with a development and production facility in Moscow.
    
    
      This news release contains certain forward-looking statements with 
      respect to the plans, objectives, expected performance and anticipated 
      financial results of Superscape and Glu. Such statements relate to 
      events and depend on circumstances that will occur in the future and are 
      subject to risks, uncertainties and assumptions. There are a number of 
      factors which could cause actual results and developments to differ 
      materially from those expressed or implied by such forward-looking 
      statements including, among others, the risk that the offer is not 
      consummated in a timely manner (if at all); the risk that the 
      anticipated benefits of the combination of the Glu and Superscape 
      businesses will not materialize; the enactment of legislation or 
      regulation that may impose costs or restrict activities; the 
      re-negotiation of contracts or licenses; risks regarding the loss of key 
      wireless carrier customers or subscribers; risks relating to the 
      integration of the businesses of Glu and Superscape including that such 
      integration efforts may result in unforeseen operating difficulties and 
      expenditures; the risk that the title plans and operations of Superscape 
      and Glu will not be combined as anticipated and that the expected cost 
      reductions will not be realized; risks related to the diversion of 
      management's attention from ongoing business operations as a result of 
      the offer process; risks relating to employee retention; fluctuations in 
      demand and pricing in the mobile industry; fluctuations in exchange 
      controls; changes in government policy and taxations; industrial 
      disputes; war and terrorism. This list is not exhaustive of the factors 
      that may affect the forward-looking information. These and other factors 
      should be considered carefully and undue reliance should not be placed 
      on such forward-looking information. Although this announcement has 
      attempted to identify important factors that could cause actual actions, 
      events or results to differ materially from those described in 
      forward-looking statements, there may be other factors that cause 
      actions, events or results to differ materially from those anticipated, 
      estimated or intended and therefore there can be no assurance that 
      forward-looking statements will prove accurate. Forward-looking 
      statements contained in this news release in respect of Superscape 
      and/or Glu are made as of the date of this news release based on the 
      opinions and estimates of management. Subject to requirements to update 
      under any applicable regulation or law, Superscape and Glu disclaim any 
      obligation to update any forward-looking statements, whether as a result 
      of new information, estimates or opinions, future events, results or 
      otherwise. Information on some risks and uncertainties are described in 
      the "Risk Factors" section of Glu's Form 10-Q for the quarter ended 
      September 30, 2007, filed with the U.S. Securities and Exchange 
      Commission on November 14, 2007. Copies of the Form 10-Q are available 
      from Glu's web page at www.glu.com.
    
    
      For a further list and description of such risks and uncertainties, see 
      the reports filed by Glu with the U.S. Securities and Exchange 
      Commission. Glu disclaims any intention or obligation to update or 
      revise any forward-looking statements, whether as a result of new 
      information, future events or otherwise.
    
    
      GLU MOBILE, GLU, SUPER K.O. BOXING!, STRANDED, BRAIN GENIUS and the 'g' 
      character logo are trademarks of Glu Mobile.