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CONAN EXILES
Due to the rapid success of Conan Exiles the Company has evaluated its investment level
into the project and decided to increase it, as we believe this to represent the highest ROI
for the next 12-24 months

Some milestones have been moved as part of the additional investment plan, to
maxim ize the quality and thus the revenue generated by those activities

The additional investment will be in the 5 to 10m USD range throughout 2017 and early
2018, to deliver technical and content updates, PR & marketing activities and
campaigns, as well as sup port for Xbox One and Playstation 4 launches

As part of the evaluation to invest more in the console version, the fact that competition
in the genre on both Xbox and PS4 is limited, has played a major part. So far only ARK
and 7 Days to Die have been released on those consoles
Game development will revolve around 3 main tracks:

Regular Patching, which will happen every one to two weeks

Performance and Stability updates

Bug Fixing to continuously polish the game experience

"Quick Win" small features and additions to the game to respond to the requests
from the community

Game Updates, which will happen less frequently but will contain more significant
additions to the game

Examples of content are the Trebuchet/Siege weapons, Dye system, mounts,
etc.

The current plan is for 4 - 6 Game Updates during the Early Access Period

2-3 Game Updates during H1 2017
2-3 Game Updates during H2 2017
1 Game Update during Q1 2018

Major Releases, for new platform launches and significant content updates

Xbox One
Game Preview and an additional Biome during Q3 2017

Xbox Game Preview is similar to the Early Access program but on the Xbox
platform

A “biome” is an addition to the existing game map with a different environment,
adding new terrain, monsters, equipment, a
vatars, etc.

Full Release on PC, Xbox, and PS4 in Q1 2018
Future potential of the game is dependent of many factors, player and media reception of the game and the company are both factors investors should consider together with the potential the title has in its genre, together with its initial success and future full launch and
launch on consoles. For more information regarding risk factors please see point 27 in the
2015 annual repor

http://www.funcom.com/investors/func...eport_for_2016