TORONTO, ONTARIO -- (MARKET WIRE) -- 09/07/06 -- CryptoLogic Inc. (TSX: CRY)(NASDAQ: CRYP)(LSE: CRP), a leading software developer to the global Internet gaming market, has completed a major upgrade to its poker platform. The company's new "Distributed Poker" system provides licensees seamless mobility to locate their shared online poker room in markets that offer the best growth opportunities, without any interruption to games or players.

The enhancements have also more than tripled the capacity of the room to enable over 50,000 simultaneous online players, allow for near-perfect network uptime, and will enable "live", seamless updates of new features and games-without any interruption to the room.

"Distributed Poker gives our group of poker customers the ability to select the most attractive markets for their shared room, both today and in the future. This is a critical advantage as operators prepare for regulation of the UK market and as new opportunities present themselves around the world," said Lewis Rose, CryptoLogic's President and CEO.

According to Michael Starzynski, CryptoLogic's Chief Technology Officer, "CryptoLogic is one of the top five revenue-generating poker rooms on the Internet thanks to consistent game innovation and network enhancements like Distributed Poker. This new platform infrastructure improves the gaming experience for players and licensees through market-leading flexibility, scalability and resilience."

CryptoLogic's wholly-owned subsidiary, WagerLogic Limited, is responsible for licensing the CryptoLogic-developed Internet poker room. Recently, the room has offered new features like Lightning( ring games and Thunder Tournaments, which give players the faster games they want, and SIXPAK(, for "final table" action in every hand. With Distributed Poker, exciting new games and features like these can be introduced to the shared poker room "live", without disruption to games or players.

"Distributed Poker represents a state-of-the-art platform for CryptoLogic to continue its strong market position in online poker and execute its strategy of game innovation that satisfies the Heart of the Online Player," noted A.J. Slivinski, WagerLogic's Managing Director.

WagerLogic's Internet poker licensees include interpoker.com, williamhillpoker.com, littlewoodspoker.com, ukbettingpoker.co.uk, pokerplex.com, classicpoker.com, sunpoker.com, totalbetpoker.co.uk and an upcoming new Playboy poker site.

About CryptoLogic®(www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Inc. 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 is certified to strict standards similar to land-based gaming. CryptoLogic's common shares trade on the Toronto Stock Exchange (symbol:CRY), on the NASDAQ Global Select Market (symbol:CRYP), and on the Main Market of the London Stock Exchange (symbol:CRP).

WagerLogic Limited, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to customers worldwide. For information on WagerLogic®, visit www.wagerlogic.com.

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press 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.

Contacts:
CryptoLogic
Rick Wadsworth
Director of Communications
(416) 545-1455

Argyle Rowland
Karen Passmore
(North American media)
(416) 968-7311 ext. 228
kpassmore@argylerowland.com

Argyle Rowland
Daniel Tisch
(North American media)
(416) 968-7311 ext. 223
dtisch@argylerowland.com

Capital MS&L
Nick Bastin
(UK media)
44-20-7255-5117
nick.bastin@capitalmsl.com