Court Approves GRAVITY Class Action Settlement

Print
| Source: GRAVITY Co., Ltd.

SEOUL, South Korea, Jan. 7, 2008 (PRIME NEWSWIRE) -- GRAVITY Co., Ltd. (Nasdaq:GRVY) (the "Company"), an online game developer and publisher, announced today that the federal judge presiding over the consolidated class action entitled Blackmoss Investments Inc. vs. GRAVITY Co., Ltd., No. 1:05-CV-04804-LAP, which was pending in the United States District Court for the Southern District of New York, approved the previously disclosed settlement of the class action on November 21, 2007. In addition, no plaintiff has filed an appeal during the 30-day time appeal period which expired on December 21, 2007.

Under the terms of the settlement, a fund of US$10 million will be created to settle the claims of a class consisting of persons who purchased American Depository Shares of the Company during the period from February 7, 2005 through November 10, 2005, inclusive. The Company's share of the settlement fund will be US$5 million. Costs of administering the settlement, as well as Plaintiffs' attorneys' fees of 20.56% of the settlement amount and related expenses, will be paid out of the settlement fund before distributions are made to class members. In exchange, the Company and its current and former directors and officers, as well as other third parties, will be released from liability for the claims asserted by the class.

The Company has denied and continues to deny any and all allegations of wrongdoing in connection with this matter, but believes that given the uncertainties and costs associated with the litigation, the settlement was in the best interests of the Company and its shareholders.

About GRAVITY Co., Ltd.

Based in Korea, GRAVITY is a developer and distributor of online games. GRAVITY's principal product, Ragnarok Online(tm), is a popular online game in many markets, including Japan, Taiwan and Thailand, and is currently commercially offered in 22 markets. For more information, please visit http://www.gravity.co.kr.

Forward-Looking Statements:

Certain statements in this press release may include, in addition to historical information, "forward-looking statements" within the meaning of the "safe-harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can generally be identified by the use of forward-looking terminology, such as "may," "will," "expect," "intend," "estimate," "anticipate," "believe" "project," or "continue" or the negative thereof or other similar words, although not all forward-looking statements will contain these words. Investors should consider the information contained in our submissions and filings with the United States Securities and Exchange Commission (the "SEC"), including our registration statement on Form F-1, as amended, and our 2005 annual report on Form 20-F, together with such other documents and we may submit to or file with the SEC from time to time, including on Form 6-K. The forward-looking statements speak only as of this press release and we assume no duty to update them to reflect new, changing or unanticipated events or circumstances.

This release can also be viewed at http://www.pressreleasenetwork.com/newsroom.

GRAVITY Co., Ltd.
Jonathan J. Lee, Chief Financial
 Officer/Investor Relations Officer
+ 822-2019-6021
jlee@gravity.co.kr