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World Gaming Reports Fiscal 2001 Results

Total revenue for the year was $20.2 million, a 13 per cent increase over the $17.9 million reported in fiscal 2000. The Company reported a loss from continuing operations of $16.8 million or $0.52 per share for the year ended April 30, 2001 compared to $4.5 million or $0.16 per share for the prior year.

During the fiscal year the Company incurred a number of one-time charges relating to restructuring, bad debts and other balance sheet adjustments and accruals for the settlement of outstanding legal matters totalling $10.5 million.

SG&A expenses increased 54 per cent from the previous year to $18.0 million as the Company made substantial investments in software development in conjunction with the launch of its new software platform, version 3.2.

``2001 represented a turbulent time for the Company which resulted in a number of significant, one-time charges,'' said Mike Aymong, World Gaming CEO. ``With many of the legal matters, bad debts and restructuring costs behind us now, World Gaming is in a much stronger position to focus on its core business.''

Gross margins decreased slightly to 70.6 per cent in 2001 from 71.2 per cent in 2000, largely due to an increase in transaction processing charges. World Gaming expects these rates will improve as the Company assumes more direct control of its transaction processing expenses.

Breaking the revenue down by sector, royalty related revenues increased 33 per cent to $18.4 million, while licensing revenues decreased 56 per cent to $1.8 million. This was primarily due to a delay in new license sales in anticipation of the release of the new version 3.2 software package.

``The new World Gaming is now in an excellent position to take a leadership role in the I-Gaming industry and substantially improve its overall financial position,'' Mike Aymong further commented. ``As part of the reorganization, management has put into place a new sales team for both Europe and the Americas, which will substantially boost World Gaming's overall sales. Our mandate is simple, to improve shareholder value through a focus on profitability, growth and customer satisfaction by flawlessly executing our business plan.''

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