Company Completes Restructuring

HONG KONG and BERLIN, Sept. 19, 2011 (GLOBE NEWSWIRE) -- 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