BLStream and Gamelion to merge operations

Helsinki, Berlin, Szczecin - August 7, 2007

BLStream Ltd. and Gamelion Inc, announce that they have entered into a binding agreement under which the companies will be joined in a pure share exchange transaction. The companies will continue to operate independently until the transaction is completed and will work together to determine the combined company's brand strategy prior to closing.

BLStream and Gamelion have co-operated closely since 2005. The combined company will benefit from an internationally seasoned management team from both companies with extensive industry knowledge from mobile and multi-channel solutions on both enterprise and consumer sectors. Both BLStream and Gamelion are on a strong profitable growth track; BLStream's annual revenue increased 80% in FY2006 and the combined company's annual revenue is expected to roughly double that result in FY2007. The combination employs over 250 professionals in Finland, Poland and Ukraine as of August 2007.

A substantial part of both BLStream's and Gamelion's revenues come from the US market. The companies will be teaming up to expand their footprint in this area.

"Gamelion is one of the largest independent Creative Studios in the region and have a very good track record of rapidly growing a global business. This transaction will strengthen the group's position in the mobile consumer sector and provides a natural home for our social media platform, Blogia." says Samuli Koski-Lammi, the CEO of BLStream Ltd. "We have been looking for an ambitious and right profile partner to join us for some time and I am very excited about the outcome. Together we create a unique company in the region with the ability to tap into the booming global mobile 2.0 business as well as the rapidly growing Polish and Ukrainian home markets."

"BLStream has been very successful in its business during the last few years, the management team has a strong cross-platform vision and means to execute it. They have solid competence centers in many areas which are essential to us in making world-class entertainment; their capabilities in 3D Graphics and Symbian are market leading "says Anton Gauffin, the CEO of Gamelion Inc. "Combining the expertise of both companies will benefit both enterprise and consumer businesses. Especially in the mobile space it's the end-user experience and design innovation that counts and this is our contribution to the new joint company."

For further information, please contact:

Samuli Koski-Lammi, CEO, BLStream Ltd.
Email: samuli.koski-lammi at blstream.com, Phone +48 600 060 759

Anton Gauffin, CEO, Gamelion Inc.
Email: anton.gauffin at gamelion.com, Phone +358 44 33 98 459

About BLStream

BLStream is a globally operating mobile solutions provider and system integrator. The company acts as a long-term strategic partner for its customers - handset manufacturers, operators, enterprises, software product companies and service providers - developing new products and offerings. First established in 1999 in Helsinki, Finland, BLStream now employs 170 first-class IT professionals with PhD and other post graduate qualifications, in offices in Szczecin, Warsaw, Wroclaw and Lviv to service the rapidly growing base of high-profile clients in the US and EMEIA region.

BLStream's customers include Motorola Good Technology Group, BBC, PacketVideo, HP and PTC ERA.

About Gamelion

Gamelion is a creative studio focused on mobile and online games. Since 2002 the company has served the leading game publishers and handset manufacturers with award winning and top scoring 2D/3D games. The company has also delivered innovative advergames for many global and local brands. In addition to development, Gamelion offers complete post production services for all mobile platforms. Gamelion works closely with customers both in Europe and the USA and has the capability to deploy games supporting various technologies and networks on both markets. Gamelion team has experience on all the major mobile platforms, including Symbian, Brew, Winmobile, WIPI, Flash Lite, Java, DoJa and Palm.

Gamelion's customers include Nokia, Sony Pictures, Namco Bandai, Square Enix, Qualcomm and Electronic Arts.