Gravity Responds to Results at Extraordinary General Meeting of Shareholders

SEOUL, South Korea – December 26, 2006 – Gravity, Co., Ltd. (Nasdaq: GRVY, the
“Company”), an online game developer and publisher, issued the following
statement following its Extraordinary General Meeting of Shareholders(the
“EGM”). At the meeting, the proposal brought forth by two dissident U.S. hedge
funds, Ramius Capital Group(“Ramius”) and Moon Capital Management(“Moon”) who
requested the removal of Mr. Il Young Ryu, the Chief Executive Officer, and
Mr. Seung Taik Baik, the Chief Operating Officer, from Gravity’s Board of
Directors was rejected by the shareholders.

“We are optimistic about the prospects for the company. In less than 15
months, the Gravity management team has addressed a number of significant and
difficult challenges. The current management team is executing on its clear
strategy to create value for its shareholders, by extracting further value
from existing content, building on brand strength to develop sequels to its
existing games, developing and publishing new titles, and broadening
distribution channels, as well as by improving corporate governance and
internal control standards. Nevertheless, we are listening to our shareholders
and committed to an open and constructive dialogue. We will continue our
efforts toward building a more transparent and accountable governing structure
as we drive the business forward. With the EGM as a turning point, the
management encourages all the shareholders and staff to help the Company make
‘Ragnarok Online2TM’ enjoy success similar to that of ‘Ragnarok OnlineTM’, the
flagship title of Gravity, has enjoyed over several years. The Company intends
to conduct its closed beta testing in Korea scheduled to begin on December
27th, 2006, In addition, the management urges the 2 hedge funds, Ramius and
Moon, to offer constructive criticism and positive encouragement as
responsible shareholders. We will do our best to fulfill the expectations of
all the shareholders.”


About GRAVITY Co., Ltd.

Based in South Korea, Gravity is a developer and publisher of online games.
Gravity's principal product, Ragnarok Online™, is a popular online game in
many markets, including Japan, Taiwan and Thailand, and is currently
commercially offered in 21 markets. For more information about Gravity, please
visit http://www.gravity.co.kr.

Forward-Looking Statements:

Certain statements in this press release may include, in addition to
historical information, “forward-looking statements” within the meaning of the
“safe-harbor” provisions of the U.S. Private Securities Litigation Reform Act
of 1995. Forward-looking statements can generally be identified by the use of
forward-looking terminology, such as “may,” “will,” “expect,” “intend,”
“estimate,” “anticipate,” “believe” “project,” or “continue” or the negative
thereof or other similar words, although not all forward-looking statements
will contain these words. These forward-looking statements are based on our
current assumptions, expectations and projections about future events. All
forward-looking statements involve risks and uncertainties that may cause our
actual performance, financial condition or results of operations to be
materially different from those suggested by the forward-looking statements,
including, but not limited to, our ability to diversify revenue; our ability
to collect, and in a timely manner, license fees and royalty payments from
overseas licensees; our ability to acquire, develop, license, launch, market
or operate commercially successful online games; our ability to compete
effectively in a highly competitive industry; our ability to anticipate and
access technological developments in our industry; our ability to recruit and
retain quality employees as we grow; our ability to implement our growth
strategies; and economic and political conditions globally. Investors should
consider the information contained in our submissions and filings with the
United States Securities and Exchange Commission (the “SEC”), including our
registration statement on Form F-1, as amended, and our annual report on Form
20-F, together with such other documents and we may submit to or file with the
SEC from time to time, including on Form 6-K. The forward-looking statements
speak only as of this press release and we assume no duty to update them to
reflect new, changing or unanticipated events or circumstances.

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Contact:
Mr. Tae Sung Hwang
Chief Financial Officer
Gravity Co., Ltd.
Tel: +82 (0)2 2019 6141
Email: thwang@gravity.co.kr


     OR

Brunswick Group:
     Ellen Gonda/Erin Becker at +1 212 333 3810 or Tim Payne at +852 3512 5000
(+852 6104 6266 m)
     Email: gravity@brunswickgroup.com