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Date:	12 January 2010
On behalf of:	Galleon Holdings plc ('Galleon', 'the Company' or 'the Group')
Embargoed for:	0700hrs

Galleon Holdings PLC

Sokator-442 distribution agreement with Game 5

Galleon Holdings plc (AIM: GON), the AIM listed entertainment media company developing and producing multi-platform properties ("MEPs") with a focus on emerging markets, is pleased to announce that it has signed a distribution agreement for Sokator-442 with online operator HuanBang WeiYe (Beijing) Science and Technology Co., Ltd ("Game 5").

Game 5 is one of China's leading operators and distributors in the rapidly growing sector of browser based games with nearly 40 million registered users and currently growing at an average of approximately  35% per month.  Under the terms of the agreement, the game will be localised by Game 5, who will then be responsible for the marketing and operational costs of running the game in China.  Galleon will take 40% of gross revenues that Sokator-442 generates through the Game 5 platform.  This agreement is non-exclusive allowing Galleon to work with other partners to broaden Sokator-442's distribution. Sokator-442 will be cross promoted with the release of the Sokator-442 animated movie which will be distributed through cinemas by Polybona throughout China in June to coincide with the 2010 Football World Cup. A TV gameshow based on the fantasy is also being discussed with broadcast partners for the back end of the year.

According to recent statistics published by the China Internet Network Information Centre, ("CNNIC")  revenue from browser based games jumped from RMB 100million in 2007 to RMB 500million in 2008.   This revenue is expected to increase to RMB 900million by the end of 2009 and forecast to be worth RMB 2.1billion by the end of 2012. 

Galleon's Sokator-442 (www.sokator442.com) has already been launched and tested in 2009 as an English language version. This version has seen over 500,000 virtual matches played already. It is a multi-player, intergalactic football (soccer) management game that combines tactical thinking with fantasy/sci-fi gameplay.  Unlike other browser-based games that are heavily text-based, Sokator442 uses rich dynamic graphics that illustrate the alien football matches in an anime comic-strip style.  Sokator-442 features  seven different alien species that all have their own stadiums and characteristics. This game will further benefit from the broadcast of the animated movie and TV gameshow outside of China.  

Commenting on the agreement, Stephen Green, CEO of Galleon Holdings, said:

"Game 5 is one of the fastest growing game portals in China. Looking at the internet gaming market in China, and in particular the rapid growth seen in browser based games, we are very excited about the potential for this agreement and are delighted to be working with Game 5."

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Enquiries:

Galleon Holdings plc	www.galleonplc.com
Stephen Green, Chief Executive	Tel: 020 8742 3636
Cenkos Securities (Nominated Adviser & Broker)
Ken Fleming / Jon Fitzpatrick	Tel: 0131 220 9772 / 0131 220 9773
Redleaf Communications	Galleon@redleafpr.com
Wendy Watherston / Mike Ward / Lucy Salaman	Tel: 020 7566 6700

Notes to Editors:

ABOUT GALLEON HOLDINGS

Galleon Holdings plc creates and distributes multi-platform branded entertainment properties focused on the emerging markets, in particular China and Southeast Asia. The entertainment properties are designed to establish a direct, interactive relationship with the viewer.

Television in China reaches approximately 98% of the population of 1.3 billion. Mobile phone penetration is also high, with over 500 million subscribers, and with over 300 million people online, China is now the largest online market in the world. Huge TV audiences and growing access to interactive platforms  present a substantial opportunity for Galleon to benefit from the popularity of and demand for interactive entertainment and game shows: China is forecast to become the world's fifth largest advertising market.

In October 2007, Galleon acquired Phoenix, a Hong Kong-based media solutions company, which specialises in the provision of interactive broadcast television services that enable broadcasters in China and Southeast Asia to provide interactive entertainment for audiences through TV, online and mobile access points. 

In February 2008, Galleon acquired Yunbo, a mobile service provider in China, strengthening the Company's ability to provide Chinese broadcasters with a complete media solutions for multiplatform entertainment. Now, Galleon has total control over the interactive content, its delivery to the consumer, data capture and the billing process.

Galleon develops entertainment formats for children, families and young adults. These include:

• Super Soccer Star - an interactive, family-orientated football talent show produced in association with Chelsea Football Club. Successful series have been broadcast in China and Malaysia, and the property has now been licensed in 47 territories.

• Skunk Fu! - a comedy/action animated TV show for kids aged 6-11.

• Apollo's Pad - an interactive online animated sitcom targeting the young male audience.

More information about Sokator-442

Also unique to Sokator-442 are collectible 'power' cards that directly influence each match, these are key to creating a 'Shaolin Soccer' experience. The game is free to play, with additional premium content and functionality available for a small fee that is payable through a number of channels, including premium SMS, interactive voice response (IVR), PayPal and credit/debit card transactions.

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