eGames Inc. announced a North American publishing agreement with Blue Tea Games to distribute hidden object adventure Enlightenus(TM) to retail stores beginning February 2009.

eGames Inc. announced a worldwide publishing agreement with MixoGames to distribute hidden object/tile matching hybrid game Liong: The Lost Amulets to retail stores beginning this November. A unique combination of seek and find puzzles and mahjongg-based challenges, Liong: The Lost Amulets earned the top sales rank position on over ten major online game portals in 2009. The Lost Amulets, players embark on a mystical journey to recover five missing amulets, uncovering hidden clues and solving tile-matching puzzles along the way. Multiple options and mini-games provide expansive challenges, including hidden-object oriented Adventure Mode and Traditional Mahjongg Mode. As a bonus, the retail package also includes the full version of marble-popper Liong: The Dragon Dance.

eGames Inc. reported earnings results for the unaudited fourth quarter and audited year ended June 30, 2009. For the quarter, the company reported operating loss of $581,526, loss before income taxes of $581,427, net loss of $635,553 or $0.05 diluted per share on net revenues of $839,185 against operating loss of $468,209, loss before income taxes of $466,638, net loss of $466,638 or $0.04 diluted per share on net revenues of $975,342 for the same period a year ago. For the year, net revenues decreased by $394,000, or 10%, to $3,562,000 for the fiscal year ended June 30, 2009, compared to $3,956,000 for fiscal year 2008. The $394,000 decrease in net revenues resulted from a decline in traditional product revenues of $622,000 (traceable to a reduction in retail distribution and lower consumer demand for the company's PC game titles) and a reduction in liquidation product revenues of $27,000. Net loss was $1,707,000, or $0.14 per diluted share compared to a net loss of $902,000, or $0.08 per diluted share, for the prior fiscal year. This $805,000 increase in the net loss for the fiscal year ended June 30, 2009 resulted from three main factors: $420,000 in operating expense traceable to the non-cash write-off of intangibles related to the Cinemaware game properties due to its assessment of impairment; $335,000 decrease in gross profit traceable to lower net revenues along with a 2.8% decline in gross profit margin (due to higher contractual royalty rates for 3rd party developed PC game titles sold during the year); and $54,000 tax expense related to the non-cash write-off of the company's alternative minimum tax related deferred tax asset. The company also reported operating loss of $1,654,200, loss before income taxes of $1,652,604, net cash used in operating activities of $452,771 and purchase of furniture and equipment of $14,843 against operating loss of $906,377, loss before income taxes of $902,250, net cash used in operating activities of $572,137 and purchase of furniture and equipment of $15,077 for the same period a year ago.