Customer retention improving in Age of Conan in early 2009

Funcom N.V’s revenues totaled 40 Million USD in 2008 (up from 5 Million USD in 2007).

EBITDA excluding nonrecurring items for the year 2008 ended at 5 Million USD (up from -5 Million USD in 2007), while EBIT amounted to -27 Million USD (compared to -7 Million USD in 2007), mainly due to accounting charges for impairment on intangible and tangible assets.

Fourth-quarter operating revenues amounted to 8,7 Million USD (up from 1.2 Million USD in Q407), and EBITDA excluding nonrecurring items was 1,3 Million USD (up from -2,7 Million USD in Q407).

“The average subscriber retention for the Age of Conan game has improved in 2009. The subscriber base of Age of Conan has consequently been relatively stable during this period. The average playtime per subscriber has also increased during the last months. The Company continues to invest heavily in both the Age of Conan game and in the new MMOs in development,” says President and CEO Trond Arne Aas.

The Company’s financial position remains strong, with approximately 40 Million USD in cash as of December 31, 2008. The cash position improved by 4,6 Million USD since Q308. Without the negative currency exchange rate development the cash position would have been improved by approximately 9 Million USD in the period.

“Funcom is well equipped to meet the current challenges, and considers the financial resources to be sufficient to develop, complete and launch the MMOs in development,” says Mr. Aas.

In 2008 Funcom N.V. sold its interest in Plutolife, thereby concluding its involvement in the mobile services segment.

Please see the attached quarterly report for more detailed accounting information.

Any enquires may be addressed to:

Trond Arne Aas, CEO. Tel: + 47 22 92 59 00

Olav Sandnes, CFO. Tel: + 47 92 22 55 40

Funcom N.V.

February 23rd 2009

Q4 2008 Report (PDF)

Q4 2008 Presentation (PDF)