XMG STUDIO INC.

02.09.2009, Toronto, ON — XMG Studio announces that it has completed its Series A Financing round. The financing proceeds will be used to accelerate growth and for opportunistic acquisitions of assets to augment the company’s game portfolio.

“The completion of this initial financing round is another important milestone for XMG Studio. We expect the financing to fund operations thru cash flow break even and support our game development targets. We believe that we have recruited a strong team at XMG and aim to be a world leader in the areas of Customization and Augmented Reality for mobile games” said Founder Ray Sharma.

XMG is also a beneficiary of research and development as well as operational tax credits that are available to fund innovation and intellectual property development. Canadian government programs such as SR&ED and IRAP allow company’s such as XMG to reduce the risk profile on technology development. In conjunction with our financing we expect that such government programs will supplement our R&D efforts.

XMG Studio is positioned to benefit from the significant disruption that mobile games are having on the video game industry. The video game industry itself has been disruptive within the media and entertainment industry. The video game economy surpassed the size of the music industry and then subsequently the movie and video industry in size over the past several years. The distinction in relative prospects looking forward is a shift in demographics as parents increasingly play video games with their children. Mobile video games are changing the game playing habits of consumers as the leading applications of choice within the smartphone app layer phenomena.

About XMG Studio

XMG Studio is an award-winning developer of hit games for mobile devices and a leader in the areas of Customization and Augmented Reality (AR). XMG creates fun and entertaining games that appeal to a wide variety of audiences by incorporating unique gameplay, deep social network integration, and compelling game graphics. XMG’s game portfolio includes: Pandemica, the World’s first multiplayer AR game and winner of Best AR App of the year (2009) in the Best App Ever awards; Drag Racer Pro Tuner, the top drag racing franchise on the app store; and Marine Sharphooter, our first million+ download sniper game.