Company reports consolidated sales of KRW 80.0 billion, operating income of KRW 9.7 billion and net income of KRW 10.1 billion; Compared to the previous quarter, sales rose 5% and Guild Wars sales rose 57%

Note: 1USD = 905.60 Korean Won (KRW)

Seoul, South Korea, November 6, 2007–NCsoft® Corporation (KSE: 036570.KS) today reported third quarter 2007 sales of KRW 80.0 billion (US$88.3 million), operating income of KRW 9.7 billion (US$10.7 million), and net income of KRW 10.1 billion (US$11.2 million) all on a consolidated basis. Compared to the previous quarter, sales rose 5%. Operating income and net income were down by 8% and 5%, respectively, when compared to the previous quarter.

By region, the percentage breakdown of sales for the third quarter shows 55% in Korea (US$47.9 million), and 45% from overseas entities and royalty income: US$15.1 million in North America, US$9.0 million in Europe, US$8.6 million in Japan, US$2.9 million in Taiwan, and royalty income of US$4.8 million. A successful release of Guild Wars: Eye of the North™ was a primary reason for 81% growth in sales over the previous quarter for Europe. Net sales in Taiwan rose by 15% over the previous quarter, thanks to the increase in Lineage II sales. Royalty sales increased by 20%, thanks to the strong Lineage sales in Taiwan.

By game title, sales in the quarter for Lineage recorded KRW 23.7 billion (US$26.2 million), Lineage II KRW 32.4 billion (US$35.8 million), City of Heroes®/City of Villains® KRW 5.7 billion (US$6.3 million), and Guild Wars® KRW 13.0 billion (US$14.4 million). Lineage and City of Heroes/City of Villains sales dropped 7% and 10%, respectively, and Lineage II and Guild Wars increased by 1% and 57%, respectively.

NCsoft CFO JaeHo Lee said, “During the third quarter, sales in North America and Europe rose with the successful launch of the Guild Wars’ expansion pack. We expect to see an increase in fourth quarter sales with the newly launched Richard Garriott’s Tabula Rasa®. Aion™ is in a closed beta testing process, and user responses are very positive.”

As for the remainder of 2007, Atrix™ which is currently in open beta test will launch before the end of the year. In the first half of 2008, NCsoft plans to launch in Korea its highly anticipated MMORPG, Aion, and for casual games; a first person shooter Point Blank™ will enter closed beta testing as will side-scroll action games, Punch Monster™ and Dragonica™.

2007 Q3 Consolidated Earnings Summary (Unit: KRW Mil)

	Q3, 07	Q2, 07	Q3, 06	QoQ	YoY
Sales	80,050	75,882	84,981	5%	-6%
Operating Income	9,735	10,603	17,495	-8%	-44%
Net Income	10,075	10,562	12,801	-5%	-21%

NCsoft, the interlocking NC logo, Lineage, Guild Wars, Guild Wars: Eye of the North, Richard Garriott’s Tabula Rasa, City of Heroes, City of Villains, Aion, Atrix, Point Blank, Punch Monster, Dragonica, PlayNC, PlayNC.com and all associated logos and designs are trademarks or registered trademarks of NCsoft Corporation. All other trademarks are the property of their respective owners.

Contact:
NCsoft IR
Brian Min
brian@ncsoft.com
+82-2-2186-3330