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DCEG Reports Another Successive Record Quarter9 August 2001OAKVILLE, Ontario--(Press Release)--August 9, 2001-- dot com Entertainment Group, Inc. (OTCBB:DCEG) a leader in the development of Internet based gaming systems, today announced its results for the quarter and six months ended June 30, 2001. Revenue increased by 91% for the second quarter of 2001 to $833,866 as compared to $436,312 in the second quarter of 2000 resulting primarily from higher royalty fees, installation fees, e-digital fees and software installation fees. The increase reflects the growing market for the Company's products as well as an increase in the number of licensees the Company now receives royalty income from. Net income increased to $113,004 or $0.01 per share this quarter as compared to $41,074 or $0.00 per share for Q2 in the prior year. Operating expenses increased by 75% to $645,525 for the quarter ended June, 2001 as compared to $368,592 in the second quarter of 2000. The increase in operating expenses primarily reflects the fact that the number of employees has increased to service the growing demand realized by all business divisions. In Q2 2001 the Company used cash of $22,920 in its operating activities, compared with positive cash flow of $5,659 for the second quarter of 2000. The use of cash results primarily from the reduction of accounts payable during the three month period. For the six months ending June 30, 2001 our revenue increased by 121% to $1,638,702 as compared to $742,222 for the six month period ending June 30, 2000 resulting again from higher royalty fees, installation fees, e-digital fees and software installation fees. Net income increased 292% to $256,756 or $0.02 per share for the six month period ending June 30, 2001 as compared to $65,469 or $0.01 per share for the six month period ending June 30, 2000. For the six month period ending June 30, 2001, the Company generated $142,383 of positive cash flow from operating activities compared with $3,574 for the six month period ending June 30, 2000 resulting primarily from improved profitability. At June 30, 2001 deferred revenue stood at $205,550. Cash and cash equivalents at the end of the six month period ending June 30, 2001 increased 58% to $803,942 from $510,281 at June 30, 2000 primarily as a result of positive cash flow from operations. ``We are very pleased to report our 11th successive record quarter and are confident in our ability to sustain our growth rate for the rest of this year'' said Scott F. White dot com's President & CEO. ``Our Q2 2001 results do not reflect additional licensee royalty income which will be forthcoming in Q3 2001 and beyond from the new licensees who have only recently entered into license agreements with us or others who have just commenced or are scheduled to commence their e-gaming operations in the coming weeks. ``We continue to expand our licensee base, adding two multinational tier one clients to our roster in August in addition to realizing organic growth from existing clients'' continued Mr. White. ``We are working very hard to diversify our growing revenue streams amongst several quality licensees, while at the same time increasing revenue from our Inferno Media e-digital division and assisting licensees to grow organically. In the next six months it will be our intention to realize revenue from our not-for-profit and play-for-fun business divisions, while at the same time focusing on fiscal responsibility and the enhancement of shareholder value. dot com is a fully-reporting, SEC registered company, which is focused on the development, delivery and support of Internet entertainment software systems, such as on-line Bingo, on-line Casino and other related products and services. |