$1M INVESTMENT

NET REVENUES COST OF REVENUE % of Revenues GROSS PROFIT OPERATING EXPENSES EARNINGS FROM OPERATIONS Operating Margin % EXTRAORDINARY INCOME / (EXPENSE) EARNINGS BEFORE INTEREST & TAXES INTEREST INCOME / (EXPENSE) NET EARNINGS BEFORE TAXES TAXES NET EARNINGS Net Profit Margin %

LOW YR1
$6,999,070 $2,050,071 $4,948,999 $1,943,970 $3,005,029 43% $0 $3,005,029 -$170,973 $2,834,056 $863,777 $1,970,279 28%

MID YR2
$13,759,154 $5,014,659 $8,744,495 $4,096,783 $4,647,712 34% $0 $4,647,712 -$235,893 $4,411,819

YR1
$7,121,434 $2,101,653 $5,019,781 $1,985,057 $3,034,724 43% $0 $3,034,724 -$170,973 $2,863,751 $872,685 $1,991,066 28%

YR2
$18,508,531 $6,627,416 $11,881,115 $5,424,000 $6,457,115 35% $0 $6,457,115 -$235,893 $6,221,222 $1,866,366.59 $4,354,855 24%

$1,323,545.76 $3,088,273 22%

Assumptions
1) $1M investment infusion assumed to be completed by Feb 09

2) Cost of Revenue includes affiliate commissions, chargeback's and royalty. This is assumed to be high between Feb 09 - Sep since funds raised will be utilized for new affiliate deals, SEO deals and other player acquisition strategies

3) Operational costs include those associated with running Israel and US operations. It is anticipated that a significant amount resources will be spent on Marketing and New Recruitments to support growth in players. This is assumed to be high betwee 09 - Sept 09 since funds raised will be utilized to roll out Marketing campaigns

4) It is assumed that real conversion of the above marketing and player acquisition strategies will create impact beginning Oc i.e. we anticipate a 6 months roll out of new capital infusion to fully adopt and execute growth strategies. 5) Taxes rate is taken at 30%

HIGH YR1
$7,314,152 $2,183,069 $5,131,083 $2,049,854 $3,081,229 42% $0 $3,081,229 -$170,973 $2,910,255 $886,637 $2,023,619 28%

YR2
$25,929,329 $9,157,283 $16,772,046 $7,505,430 $9,266,616 36% $0 $9,266,616 -$235,893 $9,030,723 $2,709,216.97 $6,321,506 24%

ed to be high between Feb 09 - Sept 09 sition strategies

anticipated that a significant amount of s. This is assumed to be high between Feb

gies will create impact beginning Oct 09 rowth strategies.

NO NEW INVESTMENT
NET REVENUES COST OF REVENUE GROSS PROFIT OPERATING EXPENSES EARNINGS FROM OPERATIONS Operating Margin % EXTRAORDINARY INCOME / (EXPENSE) EARNINGS BEFORE INTEREST & TAXES INTEREST INCOME / (EXPENSE) NET EARNINGS BEFORE TAXES TAXES NET EARNINGS Net Profit Margin %

LOW YR1
$6,881,434 $1,942,047 $4,939,387 $1,904,516 $3,034,871 44% $0 $3,034,871 -$170,973 $2,863,898 $872,729 $1,991,168 29%

MID YR2
$10,361,926 $4,144,770 $6,217,156 $3,626,674 $2,590,482 25% $0 $2,590,482 -$235,893 $2,354,588 $706,376.52 $1,648,212 16%

YR1
$6,999,070 $1,987,383 $5,011,687 $1,943,970 $3,067,717 44% $0 $3,067,717 -$170,973 $2,896,743 $882,583 $2,014,160 29%

YR2
$12,563,538 $5,025,415 $7,538,123 $4,397,238 $3,140,884 25% $0 $3,140,884 -$235,893 $2,904,991 $871,497.41 $2,033,494 16%

HIGH YR1
$7,314,152 $2,109,021 $5,205,130 $2,049,854 $3,155,276 43% $0 $3,155,276 -$170,973 $2,984,303 $908,851 $2,075,452 28%

YR2
$16,662,977 $6,665,191 $9,997,786 $5,832,042 $4,165,744 25% $0 $4,165,744 -$235,893 $3,929,851 $1,178,955.34 $2,750,896 17%

$1M INVESTMENT
NET REVENUES COST OF REVENUE GROSS PROFIT OPERATING EXPENSES EARNINGS FROM OPERATIONS Operating Margin % EXTRAORDINARY INCOME / (EXPENSE) EARNINGS BEFORE INTEREST & TAXES INTEREST INCOME / (EXPENSE) NET EARNINGS BEFORE TAXES TAXES NET EARNINGS Net Profit Margin %

MID YR1
$7,121,434 $2,101,653 $5,019,781 $1,985,057 $3,034,724 43% $0 $3,034,724 -$170,973 $2,863,751 $872,685 $1,991,066 28%

YR2
$18,508,531 $6,627,416 $11,881,115 $5,424,000 $6,457,115 35% $0 $6,457,115 -$235,893 $6,221,222 $1,866,366.59 $4,354,855 24%

Valuation at YR 1 (Financial New Investment Percentage share of the bus Post-money valuation of th Implied pre-money valuatio

Valuation at Exit Point Exit at end of year Earnings (Profit) After Tax, ta Valuation at Exit Point

Investor Return on Investm

Investment Year

Assumptions

1) Multiples are assigned as 2) Industry multiple in the ra

Operating Profit Multiple Method Particulars

Op. Profit (1) Weight Assigned (2) Weighted Profit (1*2) Total weighted Profit Total weight Weighted average profit Multiple Value of business

YR 1
$3,034,724 5 $15,173,621 $41,002,082 9 $4,555,787 6 $27,334,721

YR 2
$6,457,115 4 $25,828,460

Assumptions

1) On a conservative basis, weights are assigned as 5 & 4 for year 1 & 2 respectively to arrive at the weighted average profit. 2) For high Growth business generally a multiple in the range of 8 to 12 is assigned. We have taken a conservative view and applied a multi

Sales Multiple method Particulars

Revenue (1) Weight Assigned (2) Weighted Revenue (1*2) Total weighted revenue Total weight Weighted average revenue Multiple Value of business

YR 1
$7,121,434 5 $35,607,171 $109,641,295 9 $12,182,366 2.5 $30,455,915

YR 2
$18,508,531 4 $74,034,124

Assumptions

1) On a conservative basis, weights are assigned as 5 & 4 for year 1 & 2 respectively to arrive at the weighted average profit. 2) For high Growth business generally a multiple in the range of 3 to 5 is assigned. We have taken a conservative view and applied a multip

PE Multiple Method
Valuation at YR 1 (Financial Injection) New Investment Percentage share of the business Post-money valuation of the business Implied pre-money valuation Valuation at Exit Point Exit at end of year 2 Earnings (Profit) After Tax, taken from Financial Forecasts for YR: Valuation at Exit Point P / E Ratio High

2 24

Med Low Investor Return on Investment Value of investment Investment Year 2 $ $1,000,000 $1,741,942 Assumes Medium P/E Ratio

16 8

Total % ROI CAGR (compounded annual growth rate) of initial investment 174% 31.98%

Assumptions
1) Multiples are assigned as 24, 16 & 8 based on data of publicly listed iGaming companies in EU & GB. 2) Industry multiple in the range of 8 to 24. We have taken a conservative view and applied a multiple 8.

he weighted average profit. en a conservative view and applied a multiple 6.

he weighted average profit. n a conservative view and applied a multiple 2.5.

$1,000,000 5.0% $20,000,000 $19,000,000

$4,354,855 $104,516,529

GB & EU iGAMING TICKER PE TTR.L 8 888.L 20 GVC.L 1.69 LNG.L 54 MDC.L 1.25 PRTY.L 42.2 PTEC.L 17.09 SPO.L 4.49 WMH.L 4.82

$69,677,686 $34,838,843

BWIN.VI GF8.F SNA.MI TIM.DE AVG PE

8.81 11.87 26.8 7.84 16.07

pounded annual growth rate) f initial investment 31.98%

LOW AVG HIGH

8.03 16.07 24.10

NO NEW INVESTMENT
NET REVENUES COST OF REVENUE GROSS PROFIT OPERATING EXPENSES EARNINGS FROM OPERATIONS Operating Margin % EXTRAORDINARY INCOME / (EXPENSE) EARNINGS BEFORE INTEREST & TAXES INTEREST INCOME / (EXPENSE) NET EARNINGS BEFORE TAXES TAXES NET EARNINGS Net Profit Margin %

MID YR1
$6,999,070 $1,987,383 $5,011,687 $1,943,970 $3,067,717 44% $0 $3,067,717 -$170,973 $2,896,743 $882,583 $2,014,160 29%

YR2
$12,563,538 $5,025,415 $7,538,123 $4,397,238 $3,140,884 25% $0 $3,140,884 -$235,893 $2,904,991 $871,497.41 $2,033,494 16%

Valuation at YR 1 (Financial Injectio Third party investment till date Percentage share of the business Post-money valuation of the busine Implied pre-money valuation

Valuation at Exit Point Exit at end of year Earnings (Profit) After Tax, taken fro Valuation at Exit Point

Investor Return on Investment

Investment Year

Assumptions

1) Multiples are assigned as 24, 16 & 2) Industry multiple in the range of

Operating Profit Multiple Method Particulars

Op. Profit (1) Weight Assigned (2) Weighted Profit (1*2) Total weighted Profit Total weight Weighted average profit Multiple Value of business

YR 1
$3,067,717 5 $15,338,584 $27,902,122 9 $3,100,236 6 $18,601,414

YR 2
$3,140,884 4 $12,563,538

Assumptions

1) On a conservative basis, weights are assigned as 5 & 4 for year 1 & 2 respectively to arrive at the weighted average profit. 2) For high Growth business generally a multiple in the range of 8 to 12 is assigned. We have taken a conservative view and applied a multi

Sales Multiple method Particulars

Revenue (1) Weight Assigned (2) Weighted Revenue (1*2) Total weighted revenue Total weight Weighted average revenue Multiple Value of business

YR 1
$6,999,070 5 $34,995,350 $85,249,502 9 $9,472,167 2.5 $23,680,417

YR 2
$12,563,538 4 $50,254,152

Assumptions

1) On a conservative basis, weights are assigned as 5 & 4 for year 1 & 2 respectively to arrive at the weighted average profit. 2) For high Growth business generally a multiple in the range of 3 to 5 is assigned. We have taken a conservative view and applied a multip

PE Multiple Method
Valuation at YR 1 (Financial Injection) Third party investment till date Percentage share of the business Post-money valuation of the business Implied pre-money valuation Valuation at Exit Point Exit at end of year 2 Earnings (Profit) After Tax, taken from Financial Forecasts for YR: Valuation at Exit Point P / E Ratio High

2 24

Med Low Investor Return on Investment Value of investment Investment Year 2 $ $850,000 $2,277,513 Assumes Medium P/E Ratio

16 8

Total % ROI CAGR (compounded annual growth rate) of initial investment 268% 63.69%

Assumptions
1) Multiples are assigned as 24, 16 & 8 based on data of publicly listed iGaming companies in EU & GB. 2) Industry multiple in the range of 8 to 24. We have taken a conservative view and applied a multiple 8.

eighted average profit. onservative view and applied a multiple 6.

eighted average profit. nservative view and applied a multiple 2.5.

$850,000 14.0% $6,071,429 $5,221,429

$2,033,494 $48,803,855

GB & EU iGAMING TICKER PE TTR.L 8 888.L 20 GVC.L 1.69 LNG.L 54 MDC.L 1.25 PRTY.L 42.2 PTEC.L 17.09 SPO.L 4.49 WMH.L 4.82

$32,535,903 $16,267,952

BWIN.VI GF8.F SNA.MI TIM.DE AVG PE

8.81 11.87 26.8 7.84 16.07

pounded annual growth rate) f initial investment 63.69%

LOW AVG HIGH

8.03 16.07 24.10