CryptoLogic Declares Quarterly Dividend

TORONTO, ONTARIO--(CCNMatthews - Aug. 2, 2005) - CryptoLogic Inc.(TSX:CRY)(NASDAQ:CRYP)(LSE:CRP), a leading software developer to theglobal Internet gaming market, announced today that its Board ofDirectors has declared the company's quarterly dividend of US$0.05per common share. The dividend will be paid on September 15, 2005 toshareholders of record as at September 8, 2005.

About CryptoLogic(R) (www.cryptologic.com)

Focused on integrity and innovation, CryptoLogic Inc. is theworld's leading, blue-chip public developer and supplier of Internetgaming software. Its leadership in regulatory compliance makes it oneof the very few companies with gaming software that is certified tostrict standards similar to land-based gaming. WagerLogic Ltd., awholly-owned subsidiary of CryptoLogic, is responsible for thelicensing of its gaming software and services to customers worldwide.For information on WagerLogic(R), visit www.wagerlogic.com.

CryptoLogic's common shares trade on the Toronto Stock Exchange(symbol: CRY), on the Nasdaq National Market (symbol: CRYP), and onthe Main Market of the London Stock Exchange (symbol: CRP).

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release, which are not historical areforward-looking statements made pursuant to the safe harborprovisions of the Private Securities Litigation Reform Act of 1995.Investors are cautioned that all forward-looking statements involverisks and uncertainties including, without limitation, risksassociated with the Company's financial condition and prospects,legal risks associated with Internet gaming and risks of governmentallegislation and regulation, risks associated with market acceptanceand technological changes, risks associated with dependence onlicensees and key licensees, risks relating to internationaloperations, risks associated with competition and other risksdetailed in the Company's filings with securities regulatoryauthorities. These risks may cause results to differ materially fromthose projected in the forward-looking statements.