Swedish software company MindArk, which operates the online game Entropia Universe, has been chosen by Cyber Recreation Development Corp. (CRD) to create a cash-based virtual economy for China.

Beijing Municipal People’s Government has selected CRD as the source for culture and digital entertainment and as part of the “the Eleventh Five-Year Plan for Economic and Social Development in Beijing.”

The landmark deal was negotiated for almost a year and will bring an outside virtual world into China for the very first time. Entropia Universe was chosen over several other proposals, including one by Second Life.

The new project will permit up to 7 million concurrent users logged into the virtual universe with an overall aim to attract some 150 million users from all over the world. Entropia Universe, a 3-dimensional universe on the Internet intended for entertainment, work, commerce, community building, culture, and much more, is expected to generate over $1 billion annually in commerce from this partnership.

David Liu, the CEO of Cyber Recreation Development Corp. says, “It is estimated that the
project will generate some 10,000 qualified job opportunities in China. An important aspect
for this project is also the positive effects on our environment that we foresee. People will
actually be able to work from home inside Entropia Universe, as many people do today, even
from rural areas, thereby decreasing the amount of pollution generated by travel. Entropia
Universe’s highly secure system and open-ended approach is suitable for a variety of exciting
developments, from trade to cultural exchange, to environmental saving and historic
preservation. All in all, Entropia Universe is absolutely the best choice on the market for us to
achieve the set goals.”

Jan Welter Timkrans, the CEO of MindArk PE AB, says: “The scope that follows from this
agreement is truly grand in vision but also great for the continual development of Entropia
Universe. The ideas presented during our mutual talks with CRD are mind-boggling and
show the potential that lies within Entropia Universe as a safe, stable and trusted platform,
both for real cash commerce, as well as gaining culture and education for Entropia
participants. On the technical side, the server structure running the Entropia Universe will be
one of the fastest on Earth. I am also very pleased that MindArk has been able to quickly
come to a mutual agreement, as this journey began when MindArk joined the delegation
surrounding the East-India ship Gotheborg’s arrival in Shanghai in August 2006, and the
celebrations around this. The Swedish Royal family and esteemed members of China’s upper
political echelon were present at the celebrations.”

The technology introduced with this project will enable other companies within media, film,
music and gaming industries, or other content providers, to acquire their own planet within
Entropia Universe. In turn, this will provide a diverse, entertaining and interesting three
dimensional virtual universe of vast proportions for participants to explore. A number of the
world’s largest corporations within the aforementioned business sectors are currently in
negotiations to purchase their own planet within Entropia Universe.

The heart of Entropia Universe today lies in a distant planet named Calypso, encompassing
two continents with large expanding cities that offer a variety of entertainment and social
interaction for its citizens. The cooperation agreement with China will generate hundreds of
new planets and open up space for travel between the planets.

Entropia Universe offers opportunities in numerous professions which are unique and
completely different from that of the members’ real life occupations. Entropia uses a system
based on skills and experience which allows for occupational proficiency in areas ranging
from event promotions and store ownership to hunting and mining. Entropians have the
chance to buy and sell property, become financially successful, and even find a mate in their
virtual world.

Entropia Universe supports sales of virtual products with actual cash value within its real economy system. In December 2004, Entropia Universe set a world record, when it sold a virtual Treasure Island for US $26,500, the largest virtual dollar amount spent, to 22-year-old Australian David Storey, a.k.a. “Deathifier.” In October 2005, the sale of an asteroid-based space resort for US $100,000 to famed gamer, Jon ‘NEVERDIE’ Jacobs, set a new record for the most valuable virtual item. In May 2007, MindArk sold five virtual banking licenses for over US $400,000 and among the buyers are real world banks and financial establishments, alongside with Entropia participants.