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Warner Bros. Entertainment and Metro-Goldwyn-Mayer Make Investment in Social Games Leader Kabam

  Warner Bros. Entertainment and Metro-Goldwyn-Mayer Make Investment in Social
  Games Leader Kabam

             Top Executives at Both Companies Take on Board Roles

Business Wire

SAN FRANCISCO -- December 11, 2012

Kabam Inc., the leader in free-to-play games for core players, today announced
that entertainment industry leaders Warner Bros. Entertainment Inc. and
Metro-Goldwyn-Mayer Studios Inc. (MGM) have partnered for an investment in the
privately-held game maker. Terms were not disclosed.

Kevin Tsujihara, president, Warner Bros. Home Entertainment (WBHE) and Office
of the President, Warner Bros. Entertainment, and Gary Barber, MGM chairman
and chief executive officer will join the Kabam Board of Directors as member
and observer, respectively.

“Partnering with Warner Bros. and MGM is a natural fit for Kabam as we create
new story lines and extensions of Hollywood studios’ intellectual properties
for millions of gamers worldwide,” said Kabam Co-Founder and CEO Kevin Chou.
“Either Kevin Tsujihara or Gary Barber would be a tremendous addition to any
growing entertainment company’s board,” Mr. Chou continued. “To have both is a
boon to Kabam.”

The moves follow the recent release of The Hobbit, Kingdoms of Middle-earth, a
game co-developed by Kabam and Warner Bros. Interactive Entertainment (WBIE)
and based on Peter Jackson’s The Hobbit Trilogy, a production of New Line
Cinema and MGM. In less than one month, The Hobbit, Kingdoms of Middle-earth
has become the ninth top-grossing mobile app on Google and a top-25 grossing
mobile app on Apple in the U.S. Kabam and WBIE are co-developing another
Hobbit game to play via Web browsers, The Hobbit: Armies of the Third Age, for
release early next year. The first of the three Hobbit films is set for
release by New Line Cinema and MGM on December 14.

“We partnered with Kabam almost a year ago to deliver incredible games for The
Hobbit trilogy, arguably one of the top intellectual properties in the world,”
said Mr. Tsujihara. “As we worked with Kabam, it became clear that a closer,
more strategic partnership made sense for us both. Kabam is a leader in the
industry and we look forward to being a part of their continued growth.”

“Kabam offers great strategic vision and discipline for growth and they are
the best at what they do,” said Mr. Barber. “They are a natural partner for us
on both our vast selection of IP as well as potential future projects.” Mr.
Barber’s MGM co-owns rights to The Hobbit and owns one of the world’s deepest
libraries of premium film and television content including the James Bond
franchise and its latest installment Skyfall.

The two famed Hollywood companies join Silicon Valley titans Google and Intel
and leading venture capital firms Canaan Partners and Redpoint Ventures as
investors in Kabam.

Kabam’s board is unique in the social games sector as it has a diversified
blend of members that includes investors and operational executives.

“Effective boards govern and advise their companies,” Mr. Chou said. “Kabam
has greatly benefitted from the collective wisdom of our current board and we
look forward to added insights from Mr. Tsujihara and Mr. Barber, two media
company executives at the top of their game.”

Mr. Tsujihara was named president, Warner Bros. Home Entertainment (WBHE) when
it was founded in 2005. Warner Bros. Home Entertainment includes the Studio’s
home video, digital distribution, videogames, anti-piracy, and emerging
technology operations. Mr. Tsujihara has held numerous senior executive
positions at Warner Bros. since 1994 and was appointed to the Office of the
President for Warner Bros. Entertainment in 2011. Earlier in his career, Mr.
Tsujihara worked as a merger and acquisitions manager in Ernst & Young’s audit
and entertainment division. He received a bachelor’s degree in business
administration from the University of Southern California and an MBA from
Stanford University. Mr. Tsujihara serves on the board of directors of the
Motion Picture Association of America (MPAA), City Year Los Angeles, an
education focused, nonprofit organization, the Los Angeles Sports &
Entertainment Commission, OnLive, the Verdugo Hills Hospital Foundation, and
the Entertainment Software Association.

Mr. Barber is chairman and chief executive officer of MGM having joined the
company in December 2010. Previously, he co-founded the production, finance
and distribution company Spyglass Entertainment in 1998 where he continues to
serve as co-chairman of the board. From 1989 to 1997, Mr. Barber was vice
chairman and COO of Morgan Creek. Earlier he was president of Vestron
International Group. Mr. Barber received undergraduate and post graduate
degrees from the University of Witwatersrand in South Africa. He is a member
of The Academy of Motion Picture Arts and Sciences.

About Kabam

Kabam, the leader infree to play core gaming, is transforming the traditional
gaming industry. The company’s studios focus on combining the best elements of
traditional and social gaming to appeal to a growing audience of gamers
looking for highly immersive social games on PC, mobile, and tablet platforms.
Recent Kabam titles includeThe Hobbit: Kingdoms of Middle-earth,The
Godfather: Five Families, Dragons of Atlantis,Edgeworld, the
award-winningKingdoms of Camelot,andKingdoms of Camelot: Battle for the
North. Kabam games are currently available for play on iOS, Android, Facebook,
Yahoo, Google,Kabam.com,and an ever growing number of global social networks
and online channels, as well as mobile and tablet. Founded in 2006 with
headquarters in San Francisco, Calif., Kabam has built a team of game industry
professionals, from scratch in the last three years, committed to creating
deeply engaging games that delight our players. More information about Kabam
can be found atwww.kabam.com.

Contact:

Kabam
Steve Swasey, 415-391-0817
sswasey@kabam.com