ASIA : Hong Kong based Artificial Life announced a major expansion of its business activities to become the world’s first and only full service broadband (3G, 3.5G and 4G) content and technology provider.

Inset is Eberhard Schoneburg, CEO of Artificial Life quoted below.

The Company announced the establishment of several new business divisions extending its business and services into what are currently the six major broadband mobile business areas:

Mobile Games and Entertainment: This has been the Company’s major business area and focus thus far. Artificial Life offers over 50 unique 3G games and mobile entertainment applications and continues to launch exciting new titles every month. The key titles and products are: the multiple award winning V-girl™ series; V-boy™; America’s Next Top Model™ Cycles 7, 8 and 9; Big Brother™ Series 7 and 8; and Happy Feet™ with many more still to come in 2007 and 2008 (see the Company’s mobile portal: www.botme.com for its current game offerings). In 2008 the Company plans to release more licensed and branded game titles as well as new and innovative social networking games such as its ToonMates multi player game, innovative action games and new interactive sports titles.

Mobile TV: With the recent acquisition and improvement of SMS Galaxy, the Company has become a pioneer and instant market leader in the space of interactive mobile interfaces to live TV shows, also referred to as Participation TV. SMS Galaxy allows TV viewers to participate in live TV show formats by sending and controlling their own avatars in a show. Artificial Life is further improving this technology and currently rolling out SMS Galaxy globally. In addition, the Company produces Talking Heads, a mobile interface technology that allows custom avatars to present TV content, such as news, on mobile phones. For more details see: www.artificial-life.com .

Mobile Marketing and Advertisement: Artificial Life is offering unique new opportunities to ad agencies, media companies and major global brands to realize high quality interactive in-game product placements in 2D and 3D as well as individually sponsored and custom developed mobile games.

Mobile Aggregation and Distribution: Over the past 18 months the Company has strongly expanded its global reach through the establishment of off-deck and on-deck sales, pre-installation deals with handset manufacturers, partnerships with global media companies and distribution contracts with major global carriers. In addition the Company has successfully established its own off-deck mobile content and distribution platform www.botme.com . Artificial Life is now selling its products in over 100 countries. The www.botme.com platform will be re-skinned and re-launched still in 2007 with new product offerings, better user functions and new billing methods and will open up as a platform for distribution of 3rd party content and partners as well.

Mobile Business Applications: Artificial Life currently offers two major mobile business applications: a mobile diabetes monitoring system and a mobile real estate service. The Company intends to develop further preeminent mobile business applications in 2008, especially targeting smart phones.

Mobile Technology: Since 1999 the Company has invested over $30 million in its unique and innovative mobile technology platform. The proprietary Smart Engine Mobile Platform (SEMP™) is a cutting edge 3G middle ware which enables efficient development, testing and porting of sophisticated broadband mobile games and applications. As of 2008 Artificial Life will start selling core modules of this key mobile technology platform to mobile content producers around the world. For more details see: www.artificial-life.com .

“Our mobile gaming and entertainment business is growing very strongly on a global basis. We have extended our global reach dramatically over the last 12 months through our own mobile platform www.botme.com and through many new contracts with global carriers and media partners. This gives us the strength and means to expand even further in 2008. We intend to become a dominant player in the mobile field, especially in the broadband areas of 3G, HSDPA (3.5G) and the upcoming 4G networks. With the recent acquisitions and integration of SMS Galaxy and the mobile diabetes system we have already successfully jump-started two new and very interesting business divisions: mobile TV and mobile business apps. These complement and extend the already existing divisions for mobile gaming, marketing, aggregation and technology very well. In 2008 we intend to grow our business organically as well as through further acquisitions,” said Eberhard Schoneburg, CEO of Artificial Life, Inc.