The secured convertible notes issued pursuant to this transaction will mature in three years on July 19, 2013. They will be convertible into shares of SouthPeak’s common stock at a conversion price of $0.431 per share and will bear interest at a rate of 10% per annum, payable semi-annually. Purchasers of the convertible notes also received Series A warrants to purchase 12,761,021 shares of SouthPeak common stock at an exercise price of $0.375 per share. The Series A warrants expire on July 19, 2015. Investors will receive additional warrants (Series B warrants) if Southpeak fails to meet financial targets in 2011. Further information will be contained in the form 8-K, to be filed by Southpeak in relation to the transaction.

“This additional capital significantly bolsters our financial position and enables us to more aggressively pursue our strategic growth objectives, including new content acquisitions, increased distribution and the continued expansion of our already strong portfolio,” said Melanie Mroz, SouthPeak’s Chief Executive Officer. “We have a number of exciting titles scheduled for release during the second half of calendar 2010, as well as other strategic initiatives that we can now more nimbly execute to further expand our presence among our targeted audience of gamers.”

This news release does not constitute an offer to sell or the solicitation of an offer to buy securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful. The notes, warrants and the common stock issuable upon conversion of the notes and exercise of the warrants have not been registered under the Securities Act of 1933 or applicable state securities laws and, unless so registered, may not be offered or sold in the United States except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.