PRESS RELEASE

SOURCE: CryptoLogic Inc.

TORONTO -- CryptoLogic Inc. (Nasdaq:CRYP; TSX:CRY), a leading supplier of software to the Internet gaming and e-commerce industries, has announced the realignment of its regulatory compliance team. Vice-Chairman Robert Stikeman will oversee the company's regulatory compliance strategy in conjunction with John Chalmers. The announcement follows the resignation, effective August 2, of David Outhwaite as Chief Operating Officer.

Stikeman has been a partner for the past 16 years in Stikeman, Graham, Keeley & Spiegel LLP. John Chalmers is a highly seasoned lawyer specializing in the area of gaming law, and one of Canada's leading authorities on gambling law, regulation and enforcement. The company retained Chalmers in April.

"David has assisted CryptoLogic in its transformation to an internationally-focused, market-driven industry leader, and we wish him success with his new challenges," said Lewis Rose, Interim President and CEO. "CryptoLogic's commitment to regulatory compliance will continue to set us apart as more and more jurisdictions see the value of regulating Internet gaming to protect consumers."

"The decision to move on was a difficult and personal one," Outhwaite said. "However I believe that the accomplishments during my time here and the world-class team we have in place position CryptoLogic to capitalize on the rapidly growing and international Internet gaming market."