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Leveraging Iconic Hollywood IP to Create A Global Mobile PhenomenonSpeaker Introduction2Andrew SheppardPresident, Kabam Studios

$500mm in F2P revenue experience10 years in gaming; 7 years in F2PFirst gaming hire at KabamA top 10 global mobile game companyRevenues forecast at $270mm in 201370% growth in 2012; 50%+ growth expected in 20132 apps currently ranked Top 15 globally#1 grossing iOS application in 201213M+ registered users on Kabam.com14 languages and 100+ countries 3

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600 StrongBeijing125 EmployeesLuxembourg20 EmployeesAustin, TX30 EmployeesSan Francisco, CAHeadquarters350 EmployeesVancouver, BC50 EmployeesBerlin25 EmployeesSeoul5 EmployeesA Case Study5

E.T. the Extra-Terrestrial Developed and published by Atari in 1982Total dev budget was $200k; team had 5 weeks to complete the gameRetailers took massive amounts of inventory in the title banking on the games hit potentialGame quickly rose to being a top four on Billboard magazine's top video game sales chartsEventually sold 1.5 million units, becoming one of the best-selling Atari 2600 titles6But this story is not a happy oneAdd 3 screensWhat happened!?!Consumers quickly realized that the game had been rushed to marketThe game itself was not funRetailers purchased way too much inventory at Ataris expense; 2.5 - 3.5mm cartridges went unsoldIP licensing fees ate into Ataris ability to earn a profitDespite US$25 million in sales, Atari netted a loss of US$100 million7A $100mm bill!?!8

E.T. is not the only example910

What can we learn from these games?Shipping within a critical launch window is importantBUT not at the expense of product qualityThe core gameplay experience must be funThe game must remain true to the licenseStoryArt DirectionGameplayThe partners interests must be aligned11Hitting all of these success factors is not easy!So why does Kabam work with licensed IP?12Because we believe in brands

and because we believe all games should be great.13Add our brandsKey Partnerships14

Paramount + The GodfatherWarner Brothers + The HobbitUniversal + Fast & Furious 6

The Hobbit: Kingdoms of Middle-earthA once-in-a-lifetime opportunity for KabamPerfect pairing of IP and genre/gameplayWorldwide ship date tied to launch of 1st movieFastest growing Kabam mobile title in 2012Tight timeline required incredible discipline15Genre: StrategyPlatform: iOS and AndroidLaunch Date: Nov 1, 2012The Hobbit redefined our success expectations

Highest Grossing (LTD)16The Hobbit was our fastest growing title untilSource: AppAnnie, May 20, 2013

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Fast & Furious 6Franchise is incredibly popular within KabamGameplay and IP are made for one anotherOur largest global launch ever 11 languages day-and-date!Fastest growing Kabam mobile title in 2013Most innovative game in the category18Genre: RacingPlatform: iOS (Android later this summer)Launch Date: May 15, 2013

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http://youtu.be/XEoTNajeCKsHighest Grossing (LTD)205 days and countingSource: AppAnnie, May 20, 2013

Andrew SheppardPresident, Kabam StudiosThank you!