NCsoft Closes Down L2Extreme

NCsoft issued a press release earlier this morning announcing that they have worked with the FBI to shut down an “unauthorized game server scheme” called L2Extreme.

FBI, NCsoft Close Down Computer Game Operation

Year long investigation results in raids in multiple search and seizure warrants; Individuals questioned in unauthorized game server scheme

AUSTIN, Texas, November 20, 2006 FBI Agents working in conjunction with officials from NCsoft’s® North American business successfully closed down a computer game operation alleged to be reaping profits by providing a fraudulent service to its players. The operation was closed down after multiple raids and interviews were conducted in various cities from California to Virginia.

Federal search warrants were served on owners of L2Extreme who were also questioned during the raid. L2Extreme was providing its users with unauthorized service and code for NCsoft’s online computer game, Lineage® II. The warrants enabled officials to halt L2Extreme’s operations while collecting further evidence in the course of the investigation.

The FBI estimates L2Extreme has up to 50,000 active users on its service. NCsoft estimates that monetary losses and damages from the operation are costing NCsoft millions of dollars per year.

L2Extreme advertised on its website, www.l2extreme.com, that more than half million registered users had subscribed to play.

(Operations like this essentially are defrauding customers by stealing from companies like NCsoft,) said Matt Esber, NCsoft North America general counsel. (In the end those losses impact our customer support, product development, operational areas and ultimately they impact our player communities, most of which are trying to play games legitimately. This group in particular was downloading our version of the Lineage II software from our servers, costing us close to a million dollars in realized bandwidth costs during the period it was operational.

(We’ve taken this action because we strongly believe in defending the intellectual property rights that we’ve worked so hard to create. We’re extremely pleased that the FBI has worked with us so diligently to bring this particular case to its current state and we want our customers to understand that we will continue to fight similar operations in the future in order to maintain the integrity of all NCsoft games.)

The investigation into the L2Extreme operation is ongoing.

About NCsoft

NCsoft North America is headquartered in Austin, Texas and is a wholly-owned subsidiary of Korea-based NCsoft Corporation. NCsoft, with its own development and publishing offices in Texas and California, also works with other NCsoft subsidiaries and third party developers throughout North America to develop and publish innovative online entertainment software products. The company has successfully launched multiple online titles in the last three years and continues to support its franchises that include Lineage/Lineage II, City of Heroes®/City of Villains®, Guild Wars®/Guild Wars Factions™ and Auto Assault®. More information about NCsoft can be found at http://www.plaync.com.