Starbreeze AB announces intent to acquire Geminose Inc. and sets up North American operations

| Source: Starbreeze AB
Starbreeze AB, an independent creator, publisher and distributor of computer and
video games, has today announced its intentions to acquire and merge with the
privately held Geminose Inc, an independent studio based in Los Angeles, via its
subsidiary Starbreeze USA Inc.

Starbreeze USA Inc. is a newly established North American subsidiary with office
in Los Angeles, USA.

Geminose  is headed by  multi-award winning game  industry veterans Cos Lazouras
and Foo Katan. Lazouras, has worked at Warner Bros Interactive, Fox Interactive,
Atari  and headed Vin  Diesel's game production  company, Tigon Studios where he
produced  Chronicles of  Riddick: Escape  from Butcher  Bay. Katan owned and ran
Bits  Studios, where  he produced  multiple IP  based games  including Die Hard,
Constantine,  Terminator 2, R-Type, Wolverine and The Simpsons: Itchy & Scratchy
among others.

The  acquisition of Geminose will strengthen  Starbreeze's range of IP's further
to  include a youth  targeted franchise. The  acquisition includes a title under
development in a pre-alpha phase for iOS, Android and other platforms.

"Acquiring  Geminose is  a vital  strategic step  in our  aggressive campaign to
further  establish ourselves as a developer  and digital publisher on the global
market,  expanding our range of IPs. Just like OVERKILL Software, I am convinced
that  Geminose  will  prove  to  be  a worthwhile investment." Said Bo Andersson
Klint,  CEO of Starbreeze. He continued  "This acquisition not only broadens our
portfolio  but also breaks  new ground for  us on mobile  devices. With Geminose
leading  the push, we gain experience in a market that can be cross-leveraged to
our other products. A significant amount of our business partners are located in
the  USA so setting  up a subsidiary  with office in  Los Angeles will make sure
we're  better positioned to  expand and refine  our business and franchises. Los
Angeles is, after all, the city of cities within the entertainment industry".

"We  are  extremely  excited  to  join  the Starbreeze family, and broaden their
excellent  record of hardcore gamer based  projects, to include our family based
Intellectual Property, Geminose" said Geminose Creator, Cos Lazouras.

Geminose  is acquired  for $7  million USD  in Starbreeze  shares, valued at the
share  price per closing date  of the transaction. New  shares will be issued by
the  board utilizing its  authorization from the  AGM and would  if valued as of
today  correspond to approximately 3.0% of the  share capital on a fully diluted
basis. In addition to the shares, the sellers of Geminose Inc. could potentially
get  additional  cash  compensation  based  on  positive  results  generated  to
Starbreeze  from the Geminose IP over a  five-year period amounting to a maximum
of $10 million USD.

The  transaction is expected to close before  the end of September after a final
due diligence process.

As  a part of the  acquisition, Geminose co-founders Cos  Lazouras and Foo Katan
will  join Starbreeze at the  new office in Los  Angeles and will retain leading
positions  within Starbreeze USA  that will actively  continue production of the
Geminose IP. Bo Andersson Klint, CEO of Starbreeze AB and Mikael Nermark, COO of
Starbreeze AB, will take seats on the Board of Directors of Starbreeze USA Inc.

More information will be provided when the acquisition has been finalized.

For more information please contact:
Bo Andersson Klint, CEO, Starbreeze AB
Tel: +46(0)8-209 208, email:

Brief information about Starbreeze:

Starbreeze is an independent creator, publisher and distributor of high quality
entertainment products, headquartered in Stockholm, Sweden. At Starbreeze we
create games by our own design and through licensed content, establishing
franchises that can live and prosper outside the game itself. We live and die by

Starbreeze is pioneering digital self-publishing, currently hosting one of the
largest community groups on the digital distribution platform Steam.
Starbreeze's most recent products include PAYDAY 2, our adrenaline fuelled bank
robbing co-op game and the critically acclaimed adventure game Brothers -
A Tale of Two Sons.

Starbreeze AB is publicly traded on Nasdaq OMX First North Premier under the
ticker STAR and the ISIN code: SE0005992831. Starbreeze's brands include
OVERKILL Software and the PAYDAY series.

See for more information.