PRESS RELEASE TIGA Delivers Games Tax Break in the Budget TIGA secures decisive victory for UK video

games industry TIGA, the trade association representing the UK Games Industry, said today that the Governments announcement that it intends to introduce a tax relief for the UK video games industry was a brilliant decision and terrific news for the games devel opment sector. TIGA, the only trade association to have consistently campaigned for tax relief for games development, described the provision to implement the tax break for ga mes production as a decisive victory by TIGA for the UK video games industry which would increase employment, innovation and investment in the sector and would he lp to power the economic recovery. TIGA secured Games Tax Relief in the previous Labour Governments final Budget in March 2010, but it was dropped in the June 2010 Budget. Since then TIGA has camp aigned relentlessly for Games Tax Relief and the award winning trade associations crusade has now succeeded. Dr Richard Wilson TIGA CEO stated: This is a brilliant decision by the Government and terrific news for the UK vide o games industry. It is also a decisive victory won by TIGA through audacity, de termination and endurance. Like a boxer knocked down by his opponent, we refused to accept defeat and kept getting back in the ring. This victory will benefit n ot just the UK games development and digital publishing sector but also the wide r UK economy. Tax relief for the video games sector will increase employment, innovation and in vestment in the UK video games industry. Our research shows that Games Tax Relie f should generate and safeguard: 4,661 direct and indirect jobs; 188 million in i nvestment expenditure by studios; increase the games development sectors contribu tion to UK GDP by 283 million; generate 172 million in new and protected tax recei pts to HM Treasury, and could cost just 96 million over five years. Tax breaks fo r games production will ensure that the UK remains at the forefront of video gam e development. It will also help to rebalance the UK economy away from an over-r eliance on financial services towards a high skill, R&D intensive and export foc used industry. For Games Tax Relief to be announced in the Budget is the culmination of a four y ear campaign waged by TIGA. Government Ministers are to be warmly congratulated for this brilliant decision. The All Party Computer and Video Games Industry Gro up in the Westminster Parliament, the Labour Party and the Scottish National Par ty also deserve full recognition for supporting this critical measure. TIGA now looks forward to working with the Coalition Government, the Labour Party and the SNP and other interested parties on the implementation of Games Tax Relief. Jason Kingsley, TIGA Chairman and CEO and Creative Director of Rebellion (Oxford ), said: Congratulations must go to the Chancellor, the Government and its officials in m aking this long hoped-for decision. It will save jobs and companies, promote gr owth, build financial confidence and bring in much needed export income from aro und the world. It is exciting that they have made such a positive move and we l ook forward to working with them on the details of implementation. This is also a huge success for TIGA, for its members both old and new, and for the wider vid eo games industry that TIGA represents. Mark Gerhard, CEO of Jagex (Cambridge): I am absolutely delighted that the Government has decided to introduce TIGAs propo sals in todays Budget. TIGA has been the only trade association to have consisten

tly advanced the case for tax breaks for games production. TIGA continues to mak e a crucial difference to the UK games industry. Thanks to TIGA, the UK games in dustry is set for desperately needed further growth, investment and innovation. Colin Anderson, Managing Director at Denki (Dundee): "Games Tax Relief will stimulate much needed investment and innovation in one of the UK s leading knowledge based industries. The leadership TIGA has demonstra ted throughout this debate has played a decisive role in getting Games Tax Relie f on the political agenda and proposed into today s Budget. TIGA has shown once again that it delivers results for its members and for the wider games industry. Imre Jele, Co-Founder, Creator in Chief of Bossa Studios (London): The decision to introduce a tax credit for games production is a huge success for TIGA, for London games developers and indeed developers throughout the UK. This tax credit will reduce the cost of games development, allowing us to hire more staff, invest more in our industry and create more games. It is good for the gam es industry and good for the UK economy. Gareth Edmondson, TIGA Vice-Chairman and Managing Director, Thumbstar Games (New castle): I am delighted the Coalition Government has finally backed TIGAs call for Games Ta x Relief. This is a real triumph for UK developers. It will enable the UK games industry to remain a success story. Philip Oliver, CEO Blitz Games Studios (Warwickshire): TIGA has worked tirelessly to raise the profile of our industry in political circ les and todays decision is proof that this campaign has paid off. It is fantastic that the Government is supporting TIGAs Games Tax Relief and we are sure that th is measure will grow the industry, create more jobs and lead to higher tax reven ues for Government in the future. It is a great result for the games industry an d for the UK economy. KarlHilton, MD, Crytek (Nottingham): "This is the right decision for the future of the UK games industry and consumer s across the world who enjoy playing British made games. TIGAs victory will enabl e the UK games sector to compete on a more even playing field. It will also prom ote the creation of high skilled jobs, enhance investment and stimulate an expor t focussed industry. Patrick O Luanaigh, CEO, nDreams (Farnborough): The Government has made a wise investment by committing to TIGAs Games Tax Relief today and the whole of the UK industry will applaud them for this decision. TIG A has fought a great campaign on behalf of UK developers and digital publishers. With this result, the UK video games industry should attract more investment an d will create more high skilled jobs. Andrew Eades, CEO of UK developers have by the Government to emain competitive in

Relentless (Brighton): been competing on an uneven global playfield. Todays decision back TIGA tax break campaign will help ensure that we can r the global market.

Lee Hutchinson, CEO, Double Eleven (Middlesborough): The UK video games industry is one of the most creative and innovative in the wor ld. This decision will mean we can continue to invest in UK talent, invest more in our studios and create more highly skilled jobs. This is a great day for game s developers. It is also a major achievement by TIGA - ends Notes to editors:

About TIGA: TIGA is the trade association representing the UKs games industry. The majority o f our members are either independent games developers or in-house publisher owne d developers. We also have games publishers, outsourcing companies, technology b usinesses and universities amongst our membership. Since 2010, TIGA has won 11 b usiness awards and has been nominated a finalist for 9 other awards. In 2010 TI GA won two business awards including Trade Association of the Year from the Trade Association Forum. In 2011, TIGA won eight business awards including Trade Association of the Year fr om the Trade Association Forum, Outstanding Organisation from the Chartered Manage ment Institute and two Global Business Excellence Awards, including Outstanding M arketing Campaign. Richard Wilson won the Leadership Award from the Trade Associat ion Forum and the Outstanding Leader award from the Chartered Management Institute . In 2011, Richard Wilson won the IoDs East of England Director of the Year Award . TIGA is an Investors in People organisation. TIGA s vision is to make the UK the best place in the world to do games business . We focus on three sets of activities: political representation, generating me dia coverage and developing services that enhance the competitiveness of our mem bers. This means that TIGA members are effectively represented in the corridors of power, their voice is heard in the media and they receive benefits that make a material difference to their businesses, including a reduction in costs and i mproved commercial opportunities. For further information, please contact Dr Richard Wilson, TIGA CEO on: 07875 93 9 643, or email: richard.wilson@tiga.org. Or call Marc Ambasna-Jones on:+44 (0)7 966 510702; or email: marc@marcompr.net