G5 is establishing its presence in Ukraine with the opening of lower-cost QA and development office in Kharkiv. With population of 1.5 million, the city in the Eastern part of Ukraine is the 2nd largest in country and is an optimal choice for the expansion of G5's operations. The communication is simplified due to adoption of Russian language in Kharkiv, while commuting is easy thanks to overnight trains and direct flights connecting to Moscow, with no visa required to cross the border.

With many technical universities, Kharkiv has a lot of young technicians and is already home to a number of IT companies, including those in gaming field: Gameloft, one of the leading mobile publishers is setting up development office in town. However, human resource market is far from deficit – it is easier to scale up operations compared to Moscow, and average salaries are advantageous compared to G5's current level.

To streamline G5's entry, the company is setting up joint venture with a partner with local presence in Kharkiv. Pipe Studio (www.pipestudio.ru), a PC/online game development studio headquartered in Moscow, has successfully built up a 40+ production staff in Kharkiv starting two years ago.

Vlad Suglobov, CEO of G5, comments: "G5 is growing dynamically, and we need solid development resource base to achieve our growth goals for 2008 and further. Regional expansion is a natural move to grow, and Kharkiv is the optimal place when it comes to weighing resource costs, their quality, and simplicity of communication. Having a local partner to build upon is key to avoid pitfalls and minimize launch period before achieving desired production efficiency. It is especially important given our growth goals for 2008."

Andrey Golovlev, President of Pipe Studio, says:  "This city has talented developers, and with G5's know-how, tools and processes it's a smart move to grow here. Partnering with an established studio will make unfolding their operations here quick and efficient."

Verizon Wireless, the leading US wireless operator, serving 63.7 million subscribers, has published a list of 10 top selling games in 2007. The Simpsons: Minutes to Meltdown mobile game, which G5 developed for Electronic Arts, is ranked number 9, although the game was released only in July, 2007.

The top-ranked games include:

1. Tetris(R) by EA Mobile (New 2007 version)
2. Smarter Than A 5th Grader? by Capcom Entertainment
3. Guitar Hero III by Hands-On Mobile Americas, Inc.
4. Call of Duty 4: Modern Warfare by Glu Mobile Inc.
5. Need for Speed ProStreet 3D by EA Mobile
6. Diner Dash 2 by Glu Mobile Inc.
7. Assassin's Creed by Gameloft
8. Madden NFL 08 by EA SPORTS 3D by EA Mobile
9. The Simpsons by EA Mobile
10. God of War: Betrayal by Sony Pictures Digital

IGN Wireless, a leading US web-site dedicated to mobile gaming, has reviewed Star Wars: Empire Strikes Back mobile game developed by G5 for THQ Wireless. The game received 7 out of 10 review score. The review says: “…Starting on the ice world of Hoth and ending in the escape from Bespin, Empire touches on every key moment from the movie. Each sequence offers a different play style, from the balancing act of wrapping an AT-ATs legs in a tow cable by pressing left or right depending on the arc of Luke's speeder to the more action-oriented push through the depths of the Cloud City…”

Read the full review here

The Sims 2 Castaway mobile game developed by G5 Entertainment for EA Mobile – a mobile arm of videogame publisher Electronic Arts – has been announced and reviewed by PocketGamer.co.uk. The specialist portable gaming web-site has awarded the game 8 out of 10 ranking and Silver Medal.

Codenamed Project Ruby while in development at G5 before the announcement, The Sims 2 Castaway is powered by G5’s proprietary Talisman™ technology, and is a mobile version of the new installment in The Sims franchise. In the game, the player finds himself on an uninhabited island following the shipwreck, and has to put together a team of other survivors to discover pirate treasure, unlock the mystery of the island and find the way to escape.

“Working on the game based on The Sims, the most popular PC franchise in the history, was a great honor and an exciting job for our team. We put a lot of effort into it, and we are happy to see The Sims 2 Castaway being received so well.” – says Slavick Kokorev, Executive Producer at G5.

“Our work with EA Mobile continues to be very rewarding, and the way The Sims 2 Castaway is received shows that G5’s team is one of the best choices available to publishers today.” – comments Vlad Suglobov, CEO of G5.

G5 has landed a deal to develop AAA mobile game the leading videogame publisher. The game is targeted for 2008 release and is based on a very popular sports franchise. Codenamed Project Sapphire inside G5, the game is powered by G5’s proprietary Talisman™ technology, which allows efficient cross-platform mobile game development and deployment on a wide range of mobile devices. At the moment the company can’t disclose the customer or the brand involved because of confidentiality agreements.

“We are excited to be working on Project Sapphire. Sports games are very important market for us and G5’s team will use all its expertise and will do its best to raise the quality bar and deliver an outstanding mobile game to the publisher.” – says Mike Zakharov, Senior Producer at G5.

G5 continues to supply the world’s biggest brands with the innovative mobile marketing solutions. The company has taken on another project for one of the world’s top brands – this time G5 will supply more complex interactive application, a game, providing the user with the engaging interactive experience revolving around the brand.

“Providing the user with the compelling game based around the brand is a great way to enhance involvement in the brand. We are glad to see mobile marketing area of G5’s business taking off, with repeat orders coming from the customers.” – says Vlad Suglobov, CEO.

The management of G5 Entertainment expects revenue in 2008 to reach 17.5 MSEK with operating result of 3.5 MSEK. The company is developing well and has fulfilled its 2007 forecast of 10 MSEK revenue, 2 MSEK operating result.

G5’s first PC casual game went into Beta testing before the end of 2007. It was decided to spend additional time on polishing and improvements to make sure that production values meet market expectations. The game is expected to be delivered to the distributor on February 15th 2008. The title of the game, as well as game information and screenshots will be made public shortly before this day.

G5's interim report January-December 2007 will be published on February 25th 2008 to allow better synchronization between auditors in Sweden, Hong Kong and Russia. Interim report Q1 2008 will be published on May 15th 2008, Q2 2008 report on August 15th 2008, Q3 2008 report on November 14th 2008, Q4 2008 report on February 26th 2009.