Simfabric S.A. — M&A Activity 2020

Apr 27, 2020

Management Board of SimFabric S.A. with its registered office in Warsaw(hereinafter: the Company, the Issuer) informs that on April 27, 2020 itreceived information about the signing of a bilateral publishingagreement (hereinafter referred to as the Agreement) between the Issuerand the Koch Media GmbH concern with its seat in Höfen in Austria(hereinafter as: KOCH).

The subject of the Agreement is the transfer of 50% of copyrights to twogames (hereinafter: Games) to KOCH, and the release of Games by KOCH forPC, Nintendo Switch, PS4 and Xbox One consoles. The contract covers thesale, marketing and distribution of Games by KOCH around the world. TheIssuer will also retain the remaining 50% of copyrights and propertyrights to the Games.

For concluding the Agreement, the Company is entitled to advance paymentpayable according to the schedule, in the amount of EUR 1,782,100 net(aprox. 8,000,000 PLN) for Games.

The Issuer will carry out the production of Games in cooperation withthe KOCH concern. The agreement also includes plans for continuingcooperation aimed at releasing games for new generation consoles: PS5and Xbox Series X, as well as continuing cooperation within the series,add-ons and DLC based on Games.

Releases of Games for PCs and consoles are planned for 2021.

The Issuer's Management Board decided to publish the above informationdue to the fact that it may have a significant impact on the financialand property situation of the Issuer.