CryptoLogic Limited (TSX: CRY)(TSX: CXY)(NASDAQ: CRYP)(LSE: CRP), a world leader in Internet gaming software, announced today that due principally to seasonality and the effect of the Euro 2008 football championships, the company expects its revenue for the second quarter of 2008 to be lower than the level achieved in the first quarter of this year, but modestly higher than in the same period in 2007. The company noted that its success in signing five new customers in the second quarter enhances its outlook for the second half of 2008.

The company also expects to report higher-than-normal operating, general and administrative expenses. These higher costs include development consulting expenses that will accelerate both product development and the launching of sites for new customers, and an expenditure to protect the company's intellectual property. CryptoLogic expects to recover this IP-related cost in the future. Professional fees paid in the quarter are also expected to be higher than planned. The unusual effect of these factors will result in a modest operating loss, the amount of which will be released on August 8.

CryptoLogic management continues to believe the company is on track for significant growth later in 2008 and in 2009, for the following reasons:

- CryptoLogic is widely acknowledged as a leader in Internet casino software, and is releasing innovative new products more quickly than ever before.

- The company is aggressively working to add liquidity to its poker room.

- Its customer base has expanded significantly in 2008 to date, with five new customer relationships in the last quarter alone, and more expected in Q3.

- CryptoLogic's Asian investments are beginning to earn revenue, with potential from multiple platforms in large markets such as China, Singapore, India and Korea.

About CryptoLogic® (www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Limited is a world-leading, blue-chip public developer and supplier of Internet gaming software. Its leadership in regulatory compliance makes it one of the very few companies with gaming software that has been certified to strict standards similar to land-based gaming.

WagerLogic Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of CryptoLogic software and services to licensees who offer their games around the world to non-U.S. based players. For information on WagerLogic®, visit www.wagerlogic.com. CryptoLogic's common shares trade on the Toronto Stock Exchange (CRY, CXY), the NASDAQ Global Select Market (CRYP) and the Main Market of the London Stock Exchange (CRP).

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this news release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties including, without limitation, risks associated with the company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.