ALIF Artificial Life Inc (CE)

Artificial Life, Inc. (www.artificial-life.com), a Hong Kong based investment company (OTCPK:ALIF) today announced the launch of a new mobile and cross-platform content development studio based in Hong Kong called: ALife Studios, Inc.

ALife Studios, Inc. is a direct spin-off from Artificial Life, Inc. Due to its recent change of business model and strategy, Artificial Life, Inc. will focus on investments and support of its investment companies like ALife Studios and will work with them to develop and publish new mobile content and products rather than doing it itself.

ALife Studios will be the future outsourcing partner for Artificial Life, Inc. and will also take over current mobile development obligations from and for Artificial Life. In its first operational year, ALife Studios intends to focus mostly on paid client projects and subcontracts from Artificial Life for existing customers, shareholders, and partners and will implement mainly custom specific solutions and apps for smartphones and tablets. The range of projects and activities of ALife Studios in its first phase will therefore be similar to the past development and publishing activities of Artificial Life. In the second phase, however, ALife Studios plans to broaden its client base and its activities to also develop its own new games and innovative mobile products.

ALife Studios will be managed and partially co-owned by current and former Artificial Life talent and management to secure a smooth transition of projects and know-how. Artificial Life Investments however will remain the main shareholder of ALife Studios with a 52% equity stake and ownership.

"With the spin off of ALife Studios we have completed our re-structuring process. Most current and future development projects will be outsourced to ALife Studios as these activities are no longer part of our core business going forward so in this way we can concentrate on investments. However, since we remain the majority shareholder of ALife Studios we expect to generate substantial revenues from our former business activities going forward. In addition, ALife Studios is a private enterprise and therefore has a much lower fixed cost basis than Artificial Life, Inc. and hence can compete with any game and development studio in the world in terms of pricing, skills set, and know-how. We are looking forward to working with the team of ALife Studios," said Eberhard Schoneburg, CEO of Artificial Life, Inc.

About Artificial Life, Inc.

www.artificial-life.com

Artificial Life is a new kind of investor. We act as a global incubator and business network provider and facilitator for our investment companies, assisting them in their funding efforts, sales, production, and general business development activities. When needed, we also inject or license our valuable intellectual property to our investment companies for their use. We invest mainly in the BRICS (Brazil, Russia, India, China and South Africa) markets with a current focus on smart phone content and wireless technology such as: near field communication, mobile business apps and games, mobile health services, social networking apps and games, and mobile commerce. We have won many industry awards for outstanding technology and products in prior years.

Artificial Life, Inc. is a Delaware registered corporation founded in 1994 in Boston. We are a public US entity (OTCPK:ALIF). Our global headquarters is in Hong Kong and our EMEA headquarters is in Berlin, Germany.

The Artificial Life logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=1669

Forward-Looking Statements:

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements include, without limitation, statements regarding our future results of operations, financial condition and business prospects. In some cases, you can identify forward-looking statements by terminology such as "may", "will", "should", "expect", "intend", "plan", "anticipate", "believe", "estimate", "predict", "potential", "continue" or the negative of these terms or other comparable terminology. Although such statements are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on them. These statements involve risks and uncertainties, and actual market trends or our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied in these forward looking statements for a variety of reasons. Potential risks and uncertainties include, but are not limited to, our ability to obtain additional funding to operate and grow our business; the success of our new investment based business model; the ability to sell or license our assets; the ability to find appropriate investment targets for reasonable terms and conditions; our ability to finance investments; our ability to sell and exit from investments; financial conditions in our target markets in the Euro zone and the BRICS nations; the availability of funding for our investment companies and their commercial success and financial stability; our general reliance on our current and future investment companies; our dependence upon resellers and telecommunication carriers and operators to distribute our products or the products of our investment companies; and the timing of new product announcements or introductions by us, our investment companies or by our competitors. For additional discussion of these risks and uncertainties and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB filed on August 2nd, 2011. We assume no obligation to update any forward-looking statements, which apply only as of the date of this press release.

CONTACT: Artificial Life IR and PR Contact: 
         Tel: (+852) 3102 2800
         ir@artificial-life.com

         ALife Studios, Inc.
         info@alife-studios.com