Friday, July 18, 2008

Some of you may be surprised, some of you may worry, and some of you may be up beat to hear the shocking news coming from us every week.This week has been all about Flagship Studios Shut Down, and IP law suits over HGLD and Mythos. This is the Translation of our press release put out on July 16th, 2008 in Korea.

Bill Roper and Directors of Flagship Studios Bear Responsibility

Last weekend, Flagship Studios announced that former employees were fired and HanbitSoft mentioned that all measures were proceeding as planned to the benefit of players (in Korea) to ensure that continued service of Hellgate: London would be seamless despite the current problems at its development studio. In addition, HanbitSoft holds the executives of Flagship Studios fully responsible for the incident towards the rights and interests of the users and stakeholders, including shareholders and other parties involved. HanbitSoft is considering taking strong legal action against Flagship Studios in order to take them to task for their responsibilities.

HanbitSoft does not expect to have any difficulty in securing the exclusive intellectual property rights related to Mythos. HanbitSoft is prepared to deal with Comerica bank in a local visit to them next week in order to secure and acquire the intellectual property rights of Hellgate: London. HanbitSoft believes that the game has nothing to do with the aforementioned bank as HanbitSoft already holds the rights to the game in Asia. HanbitSoft believes it has a strong possibility of acquiring the intellectual property of Hellgate: London in the United States and the rest of the world.

HanbitSoft stated that they will be devising a plan to continue work on the games with local (Korean) game developers in order to see the game through.

HanbitSoft’s CEO Kim Ki-Young stated, “Hellgate: London has a strong possibility of being ‘reborn’ into an excellent game with an outstanding product life,” he continued to say that “With more than 500 people at its disposal, both in-house and outsourced contracts who are veteran developers of every genre ranging from casual games to hardcore MMORPGs, we are ready to recreate Hellgate: London into an excellent game.”

He continued, “We don’t have to recruit existing developers, however if we could do so, we could shorten the time for analysis and developing for users. Although we are trying our best, since Flagship Studios doesn’t want to cooperate, we have no choice.”

According to HanbitSoft, they offered several methods and the means to keep Flagship alive in consideration of the users, but Flagship majorly lacked in effort. Hanbitsoft already has offered large amounts of investments but Flagship replied with ridiculous counter-offers and the negotiations went south. Even so, HanbitSoft continued to make investment offers which were all rejected, leading to the lay-offs of all of the Flagship employees.

HanbitSoft also stated, “Flagship not only lacked effort, but were only looking for personal gain. Firing all of the Flagship employees in order to protect the personal interests of its founding members only shows how selfish and irresponsible they are.”

Flagship Studios is an incorporated company. Hence if any problems occur within this company, it doesn’t affect the finances of any of Flagship Studios’ founders.

HanbitSoft said they are going to take legal proceedings as Flagship Studios is legally responsible for a serious breach of duty in not protecting their stockholder’s rights. The legal proceedings will be done against Flagship’s founders and management people for their intellectual property. HanbitSoft currently owns a 9.5% stake in Flagship Studios.

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T3 Entertainment Becomes the Largest Stockholder of HanbitSoft

As you may have heard from the various news, T3 Entertainment, the developing company very well known for Audition, online casual dance game, has acquired controlling stake in HanbitSoft on May 19, 2008 and have become the largest stockholder of the company.

The following is part the press release put out on the announcement day in Korea.

HanbitSoft announced today(May 19, 2008) that T3 Entertainment(hereinafter T3) has become the largest stockholder of the company.

HanbitSoft assigned 25% of Alex Kim’s share, who had been CEO and the largest stockholder of HanbitSoft, to T3.

HanbitSoft stated that this strategic coalition between the two companies will bring great synergy to the whole industry. Games that are developed by T3 will be serviced through HanbitOn, game portal site of 8million accounts, which will eventually brought up to be one of largest game portal sites in Korea.

T3 seeks to brighten up the domestic market by strengthening HanbitOn, and global market through strong international network HanbitSoft have built so far.

“Despite the ownership of the company, I will continue to devote my all passion and my know hows for HanbitSoft’s better future” said Alex Kim, CEO of HanbitSoft, and added “we decided to go for ‘changing the largest stockholder’ other than any other possible ways to go, because we agreed it is the best way to be. We believe our deal will bring positive energy to struggling industry.”