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AGC Announces $17.3 Million Financing

Trinity has agreed to purchase on behalf of its investor group a $17.3 million Convertible Debenture issue of AGC. The Debenture will bear an interest rate of 13 percent over a term of 5 years from the date the funds are advanced. At the end of the 5-year term the principal amount must be repaid to the lender.

The funds will be used to expand the National online Lottery program into the Ho Chi Minh City region. The Corporation will purchase up to 1200 terminals and all associated hardware and software required to implement daily and weekly lottery games along with sports based wagering.

The Company expects that the implementation process can take up to six months after completion of the financing and anticipates start up in the Ho Chi Minh City region in early 2001. Ho Chi Minh City is the economic heartland and financial centre of Vietnam. Last year Ho Chi Minh City accounted for 85% of the countries total lottery revenues, almost $600 million dollars. The Ho Chi Minh City region has a population base of over 21.6 million people and generated $44.0 billion US in gross domestic product last year.

The principal amount of the debenture will be convertible, at the holder's option, into units of Applied Gaming Solutions at a price of $.50 per unit, each unit consists of one common share and one common share purchase warrant. Each share purchase warrant shall entitle the holder thereof to purchase one common share at an exercise price of $0.65 per common share. The expiry date on the exercise of the purchase warrants shall be no later than 36 months from the date of a NASDAQ listing or 36 months from closing whichever is earlier.

``Trinity is pleased, on behalf of its Investor group, to be able to assist AGC as quickly as possible in reaching its objective of expanding its online lottery operations in Asia. AGC has an impressive record in Vietnam and together, we will forge new opportunities throughout the region and create a new dominant player in Asia,'' said Mr. Jim Beatty, President Trinity Capital Securities Limited.

``We are gratified with the confidence that the Trinity Investor Group is demonstrating in our business model. Trinity Capital is a well-respected financial group and we look forward to working closely with them to expedite this financing.

These funds will allow the corporation to secure the immediate short-term benefits available from the expansion of the online lottery program into the Ho Chi Minh City region. We are confident that this financing will significantly contribute to unlocking shareholder value, it is an important step towards AGC establishing it's self as a Major Player in the global lottery industry,'' said Mr. David Aftergood, President & CEO of Applied Gaming Solutions of Canada Inc.

Upon Closing of the convertible debenture Trinity will have the option to appoint three members to the Board of Directors of AGC. Also under the terms of the agreement management will hold the proxy of the debenture holder, if converted into equity, for a minimum of 3 years from the date of conversion insuring continuity in the management and operations of the corporation. Both corporations have agreed that time is of the essence and that they will close the Convertible Debenture as soon as all technical and regulatory issues are resolved. Also, as part of the financing, AGC will begin the filing process for a NASDAQ listing.

This Debenture is subject to:

A) Mutually satisfactory final agreements

B) All necessary and required regulatory approvals

C) AGC's Board of Directors approval, Bridge holders approval, shareholder approval, investors and their Management Committees approval

D) All statutory hold periods that may be imposed by the applicable regulatory authorities

As well, both parties acknowledge that the applicable securities and exchange commissions may modify the terms and conditions of the Convertible Debenture as required.

Applied Gaming Solutions of Canada Inc. is a global leader in the outsource management of online lotteries, e-gaming solutions and related professional services for delivery to a growing audience of international governments. Today, AGC leads the technical and marketing support activities for the on-line lottery system run by the Construction Lottery of the Capital-Hanoi in Vietnam, delivered in conjunction with its' suppliers AWI, a division of Anchor Gaming [NASDAQ:SLOT], IBM [NYSE:IBM] and Motorola [NYSE:MOT].

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