The two Bohemia Interactive employees arrested in Greece on Sunday were on a "holiday trip to Lemnos", the company's CEO has claimed, adding that the firm has "never instructed anybody to violate the laws of any country".
The two Czech developers, aged 28 and 33, were arrested on charges of espionage after being suspected of taking photographs and video footage of a Greek military installation.
It's been assumed that the research would have aided the development of war simulator Arma 3.
"We can confirm that two Bohemia Interactive employees, our colleagues and friends, were arrested during their holiday trip to Lemnos," said Bohemia Interactive CEO Marek Spanel in a statement provided to VideoGamer.com.
"They visited the island with the sole purpose of experiencing the island's beautiful surroundings.
"Since its establishment in 1999, Bohemia Interactive has created games based only upon publicly available information. We always respect the law and we've never instructed anybody to violate the laws of any country. The same is true for Arma 3."
Spanel says that the firm is actively supporting the two arrested men, as well as their friends and families.
"We sincerely hope that this is an unfortunate misunderstanding of their passion as artists and creators of virtual worlds," he added.
The pair are due to appear in court on the island of Lesbos.