Some of you have asked about our response to a recent lawsuit filed in northern California. Our users
are extremely important to us and when you expressed concerns about the transmission of mobile
phone numbers in August, we immediately and proactively addressed those concerns by updating the
applications on the Apple App Store. We apologize for what happened and regret any inconvenience
that this upgrade process may have caused you then.

Going forward, we want you to know that Storm8 will ask the judge to dismiss the lawsuit in its entirety
due to the lawsuit’s complete lack of merit. We believe that we have always complied with all of the
statutes referred to in the lawsuit and never took an action that harmed or impaired users or your
devices in any way. To our knowledge, no user has incurred any damage or loss as a result of the
matters discussed in the lawsuit.

Here’s the background: You may recall that in August 2009, some users noted that Storm8 games
contained software code that for some users collected mobile phone numbers upon opening the
application for our massively multiplayer online role‐playing games (MMORPGs). However, Storm8 was
not using those numbers for any purpose. Nor did we ever provide them to any other company.

We determined that these numbers were being collected as the result of legacy code (old, obsolete
code) in the games. The legacy code had been included early in the software development process as a
potential way for Storm8 to identify specific devices; however, we later determined it was more suitable
to use the device’s Unique Device ID instead. Once Storm8 was alerted to this issue in August, we
immediately took voluntary, proactive steps to satisfy our user community and we quickly made
available updated versions of our games without that legacy code.

Storm8 greatly values its relationships with its millions of users and with Apple, and our goal is to
continue making our exciting gaming experience available. We know that users are continuing to play
Storm8 games, but need the ability to access the iTunes store to upgrade the applications in order for
Storm8 to best serve our user community. We are actively working with Apple to help resolve these
issues, and will keep you informed.

In short: Current game versions do not download, store or use iPhone® telephone numbers when a
game is opened, and Storm8 has no plans to download, store or use iPhone® numbers in the future
unless the user expressly authorized the download in advance. We are committed to continuously
enhancing your gaming experience and customer satisfaction through planned new launches and
ongoing upgrades.

We will update you on any new developments and thank you for your patience and your continued
support.