Calgary, Alberta, Canada, December 7, 2004, Chartwell Technology Inc. (TSX:CWH) (the “Company”), a leading provider of gaming software systems and entertainment content to the online and remote gaming industry, is pleased to announce the closing of its previously announced (November 18, 2004) bought deal private placement financing of $11,000,000, consisting of 2,365,592 Common Shares which were sold at a price of $4.65 per Common Share.

Clarus Securities Inc. and Harris Partners Limited acted as underwriters (collectively, the “Underwriters”) and received a commission equal to 6.0% of the gross proceeds of the offering. As additional compensation, the Underwriters were granted 141,936 compensation options, exercisable at an exercise price of $5.10 per Common Share for a period of 18 months from the date of the closing of the offering.The size of the private placement was increased to $11,000,000 upon the exercise of the Underwriters’ over-allotment option to purchase an additional $1,000,000 of Common Shares of the Company. All of the securities sold pursuant to the offering will be subject to a four month hold period in Canada

following the date of the closing. The Common Shares were not offered or sold in the United States. Net proceeds will be used by the Company to fund growth and expansion and for general corporate purposes.

About Chartwell

Chartwell Technology Inc. specializes in the development of leading edge gaming applications and entertainment content for the Internet and wireless platforms and other remote access devices. Chartwell’s Java and Flash based software products and games are designed for deployment in gaming, entertainment, advertising and promotional applications. Chartwell does not participate in the online gaming business of its clients. Chartwell’s team of highly trained professionals is committed to delivering the highest quality software and maintaining its leading edge through continuous development and unparalleled customer support.

Chartwell invites you to preview and play our games at: www.chartwelltechnology.com

For further information, please contact: Chartwell Technology Inc.

The TSX does not accept responsibility for the adequacy or accuracy of this release.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical fact are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements, including, but not limited to, certain delays in testing and evaluation of products, regulation of the online gaming industry, and other risks detailed from time to time in Chartwell's filings with the Securities & Exchange Commission. We assume no responsibility for the accuracy and completeness of these statements and are under no duty to update any of the forward-looking statements contained herein to conform these statements to actual results. This is not an offer to sell or a solicitation of an offer to purchase any securities.