Nyko Emphasizes Focus on Quality and Innovation as Raw Materials and Manufacturing Costs Grow Worldwide

Los Angeles, CA - May 14, 2008

Nyko Technologies® today announced price increases for most of its products as a result of the changing global economy.

New Chinese labor laws have resulted in a significant increase in production costs of almost 40%. In addition, the price of oil continues to break record highs, contributing to higher shipping rates and the rising cost of plastic materials. Those factors, combined with a 10-20% increase in the cost of raw materials commonly found in electronics including gold, silver, and copper, have companies worldwide re-evaluating their business models. In response, Nyko has chosen to focus on delivering high quality products rather than lowering its production standards in order to maintain current price points.

“The cost of manufacturing continues to rise while the value of the U.S. dollar grows weaker, forcing us to adapt,” said Herschel Naghi, CEO of NYKO Technologies.“Experience has shown that maintaining quality at a higher price, instead of degrading our product in order to keep costs low, is a strategy that will prevail in the long run.”

About Nyko Technologies, Inc.

Nyko Technologies® develops, manufactures and markets innovative peripherals to enhance the digital lifestyle. The company's mission is to deliver products that solve problems and improve user experience for work and play. Nyko specializes in interactive entertainment, computing, consumer electronics, portable audio, as well as online and wireless technologies. The company has distribution through major U.S. and Canadian retailers, along with distributors worldwide. Founded in 1995, Nyko is headquartered in Los Angeles, Calif. Please go to www.nyko.com or call 1-888-444-6956 for more information.

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