DGAP-News: 10TACLE STUDIOS AG agrees finance package with Hamburg-based private - CEO Michele Pes announces share purchase.

10TACLE STUDIOS AG / Agreement

17.03.2008 

Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
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Darmstadt, Germany, March 17, 2008: 10TACLES STUDIOS AG has entered into an
agreement with Hamburg-based ship owner Bertram Rickmers regarding a
finance package for the company. Rickmers already holds approx. nine
percent of the company's shares. Over the previous weeks, market rumors had
negatively impacted on the company's refinancing options. The investment
package tied up with one of the major stockholders also includes a
convertible bond issue, for which a capital increase of 614,750 shares,
having a subscription price of € 2.50 per share, is intended. There are no
plans to grant subscription rights to any
other stockholders. The Managing Board expects that, as a result of this
agreement, other company projects could also be successfully implemented
over the short term. This would have a positive effect on the company's
liquidity situation, which has of late been impacted by the uncertain
market prospects.

At present, 10TACLE STUDIOS AG has overdue claims against at least three
different fund investors, totaling € 13.4 million. The company's management
is proceeding on the assumption that the settlement of a large portion of
these claims with its debtors will be feasible over the next 14 days. At
present, it seems unlikely that these claims would need to be written down
in the company's annual financial statements for the 2007 fiscal year. The
production-to-stock underlying these claims have a high intrinsic value.

However, falling short of the forecast published for the 2007 fiscal year
can no longer be excluded. In its interim report of November 19, 2007,
10TACLE STUDIOS AG had already indicated that substantial delays have been
incurred in the production of ELVEON and TOTEMS.

As the development of the console games ELVEON and TOTEMS has resulted in
additional costs – as will be shown in the individual financial statements
of the relevant subsidiaries –, a negative impact on the Group results must
be assumed. Due to other compensating effects and a number of valuation
issues still to be clarified, a binding statement with regard to achieving
the projected figures for 2007 will only be possible at the end of March
2008. The company will release the preliminary figures for the 2007 fiscal
year no later than Monday, March 31, 2008. The publication of the audited
financial statements is planned for late April 2008. It should be noted
that the delay in the above productions has in no way impacted on the –
initially projected – intrinsic value of these products. This is confirmed
by the fact that well known publishers have made offers for the global
marketing of the game ELVEON in particular.

As a result of the effects described above, the 10TACLE Group experienced a
strained liquidity situation. Without additional finance, the Group may not
have been able to serve its medium-term liabilities. However, this threat
has been averted thanks to the funding package agreed with the private
investor Bertram Rickmers. Should the reduction in receivables, contrary to
expectations, experience further delays, the company has a number of
financing options at its disposal to safeguard liquidity.

Moreover, a comprehensive restructuring of the 10TACLE Group has been
agreed upon in order to optimize the company's organization, making it more
transparent for market participants. At the heart of this re-alignment is
the consistent positioning of 10TACLE STUDIOS AG as a development and
production company. In the future, the classic tasks of marketing and sales
will be performed almost exclusively by publishing partners. This measure,
which has already been fleshed out by a number of cooperation agreements,
has already brought about noticeable effects, both in terms of the capital
invested in the prefinance of marketing costs and in terms of physical
products. One welcome side effect for the company is the positive feedback
received from publishing partners, as 10TACLE does not act in competition
to traditional publishers, but has positioned itself as their cooperative
business partner.

 Cost savings have already been realized or initiated in the following
areas:

Overall, 25% of the Group's staff who are not directly involved in the
product development (marketing, overheads, etc) will be made redundant. The
company has been trying – and will continue to do so – to transfer these
staff members into new positions with companies in related industries.

Furthermore, the company has decided to close its Bratislava site, which
has been responsible for the ELVEON production up till now.  The tasks for
the finalization of production have already been assigned to other
locations and the cooperation partner Climaxgroup in Southampton, England.
The restructuring process will continue in full swing; the new cost and
efficiency-optimized structure should be ready by no later than the summer
of 2008.

The company's management expects a strongly positive news flow for the
company over the coming weeks.

The Group will expand in the area of investor relations, controlling and
finance. In addition, the search for a suitable Chief Financial Officer
(CFO) also continues unabated, with discussions currently under way.

Michele Pes, CEO of 10TACLE STUDIOS AG:

'10TACLE STUDIOS AG is a young enterprise. Regrettably, the delays in the
production of ELVEON and TOTEMS have excessively undermined the trust
placed in our company. Combined with the global crisis in the entire
financial market, a situation has arisen in which we were penalized with
unexpected harshness. In the view of the experts, including the research
specialists analyzing our company data, our company's market capitalisation
is disproportionately low, despite the problems indicated. For a short
while, the 10TACLE Group was traded at a value that corresponded to the
value of one single large production in the console games area. The 10TACLE
Group operates an integral studio network, produces for all common formats
such as PC, X-Box, Playstation III and Nintendo DS, has a comprehensive
line-up, and also holds an impressive range of valuable licenses for the
production of games. Young in years, 10TACLE is still an exception in the
market. Many competitors, some of which have a significantly longer history
in the market as game development companies, have not yet been able to
achieve the market position and relevance that we are already enjoying
after only four years in business. Sure, we have made mistakes in our
'youthful' exuberance, but the result is nevertheless remarkable. We count
the top names from the publishing world among our customers, with the
world-leading publishing house Electronic Arts being one of our main
partners. 10TACLE's license portfolio contains high-caliber brands such as
FERRARI. What's more, 10TACLE has attained a promising position in the
growth market for educational and advertising games, launching productions
such as Happy Hippos World Tour and BMW World.

The staff of 10TACLE STUDIOS AG and its respective subsidiaries have
created a company within a very short period of time that has rightly
conquered its position in the market and will maintain this position
despite the current challenges. The management thanks these staff members
for their outstanding contribution. As the Chief Executive Officer, I am
confident that the measures introduced will restore investors' confidence
and a fair valuation for staff, partners, and stockholders of 10TACLE
STUDIOS AG.

Following the publication of this press release, I – as a manager of this
company – will also acquire further shares in the company, to a degree that
is disproportionately high when you take into consideration my financial
situation.'



About 10TACLE STUDIOS AG

10TACLE STUDIOS AG, listed in the General Standard segment of the Frankfurt
Stock Exchange (German securities ID number (WKN): TACL10, ISIN
DE000TACL107) is an independent development and production company for
high-end computer and video games and a market leader in Europe. The
products of 10TACLE STUDIOS AG meet the highest international standards and
cover all the relevant high-growth segments of the games market. The
company operates out of its headquarters in Darmstadt and its development
sites in Berlin, Darmstadt, Duisburg, Hanover, Budapest, Charleroi, London,
Singapore and Vienna.
DGAP 17.03.2008 
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Language:     English
Issuer:       10TACLE STUDIOS AG
              Goebelstr. 21
              64293 Darmstadt
              Deutschland
Phone:        +49 (0)6151 39 738 21
Fax:          +49 (0)6151 39 738 10
E-mail:       ir@10tacle.com
Internet:     www.10tacle.com
ISIN:         DE000TACL107
WKN:          TACL10
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Düsseldorf, Hamburg, Stuttgart
End of News                                     DGAP News-Service
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