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Gold/Mining/Energy : Software Gaming Corp. SGMS/CDN-OTC -- Ignore unavailable to you. Want to Upgrade?

To: richard who wrote (1887)	10/19/1999 4:28:00 PM
From: LORD ERNIE	Respond to of 1968

Letter to Shareholders This past year, Software Gaming Corp. (SGC) underwent a variety of positive changes, from the restructure of its management team, to the acquisition of companies whose products broadened SGC's mission to deliver exciting, new, technological, software and entertainment solutions to consumers. The past year was a period of significant growth for SGC's online entertainment subsidiary, Internet Gaming Corp. (IGC). Cyberspades Online Casino released its live 3D version offering true panoramic gaming environments for players, live chatting and real-time, multi-player table games. Downloads of the casino software grew 60 per cent over last year's figures for June to September, increasing from 1,250 to 2,000 downloads a month. The substantial increase in playership is primarily due to increased marketing initiatives and incentives, and improved targeted Internet placement of banner advertising. IGC's bingo game product, BingoTown has proven very popular. Through favourable reviews and web-based word of mouth, BingoTown has an estimated 7,000 registered players and receives 40,000 to 50,000 "hits" (web page visits) a month. IGC enhanced the application to provide more interactivity for the end-user and to encourage increased web traffic. True card "dabbing" was added through innovative JavaScript programming where players now "dab" a called number with a mouse-click, as opposed to automated "dabbing". To capitalize on the game's exposure to a varied and ever-increasing web audience, IGC is currently implementing banner advertising opportunities into BingoTown. It is anticipated that BingoTown will be used to generate revenue through online ad sales. The company continues its initiative to raise the required capital for GlobalWire and its application for Albert's Parlour is still pending approval from the Ontario Jockey Club. The recent addition of unique and innovative software products to fulfill SGC's promise to deliver sophisticated and user-friendly applications to consumers was met by the acquisition of Beyond 2000 Solutions, Ltd. (B2SL). B2SL produces, markets and distributes easy-to-use PC Y2K fix software and other PC software products unmatched by any other similar product(s) currently on the market. In conclusion, SGC's management team has established solid financial goals for itself and its subsidiaries' overall potential for growth. The company will continue to increase revenue and to build net income through strategic investments and product expansions. Dan Amadori Chairman and CEO Financial Highlights (1999 Fiscal Year) Revenues were generated from the online casino operations. Management wrote down its investment in several non-performing assets acquired in prior years. Additional capital was secured through several private placements of the company's common shares. -------------------------------------------------------------------------------- Software Gaming Corp. Annual Report 1999: \| Cover \| Page 2 \| Page 3 \| Page 4 \| Close Window \| -------------------------------------------------------------------------------- Comments or Questions? Please email us at feedback@softwaregaming.com Software Gaming Corp. 1446 Don Mills Rd., Suite 100, Toronto, ON Canada M3B 3N6 Tel: (416) 410-4940 \| Fax: (416) 410-7348 SGMS OTC: Toronto \| investors@softwaregaming.com

To: richard who wrote (1887)	10/19/1999 4:29:00 PM
From: LORD ERNIE	Respond to of 1968

Corporate Overview Software Gaming Corp. produces, manages, distributes and implements software, data and entertainment solutions for consumers, businesses and organizations. The company is focused on providing advancement in three core industry sectors: Online Entertainment Electronic Commerce Software Development In the online entertainment sector, the company operates a popular online bingo game called BingoTown and two online casinos, Cyberspades 1.0 and Cyberspades Live 3D. The casino software is also marketed through a secondary website at www.oecasino.com. The 3D version of the casino offers panoramic gaming environments, multi-player games, live chat and stock quotes. In the electronic commerce sector, SGC holds exclusive rights to an international wire transfer service called GlobalWire. GlobalWire operates a proprietary software and hardware system called ChinaWire™ that wires money to China from Canada or the U.S, and eventually from other world markets. The company is currently developing and implementing web-based electronic commerce software solutions for profitable private clients. In the software development sector, SGC (through its wholly-owned subsidiary Beyond 2000 Solutions Ltd.) produces, markets and distributes in-demand software. These products include: MFX 2000: The only fully automated tool on the market today enabling all businesses to achieve Y2K compliance prior to 2000. This software automatically corrects all operating systems, applications and data identified as Y2K non-complaint, when prompted by the end-user. Intellifix 2000: A unique Y2K fix program that permanently fixes the year 2000 date issue in PC software as well as hardware few other Y2K programs can claim to do this. Speed 98: CPU software that increases the overall performance of a PC's CPU by 35%. TotalFax: Complete office management software enabling small businesses to have unlimited flexibility in how they communicate with their clients and suppliers. Website Traffic Builder: a website registration and promotion program. These products are sold through consumer retail stores and through Soft Choice, a recognized national sales agent. Figure 1.www.bingotown.com/bingo/ Figure 2.www.cyberspades.com Figure 3.www.b2000solutions.com Industry Statistics Online Entertainment (Gaming) The online gaming industry is comprised of: casinos, sportsbooks, bingo games, multi-player online strategy games such as chess and checkers, and other games of chance. In 1997, published reports put the total number of operating online casinos at 15. Today, a roster on one "gambling portal" site lists well over 200. PC Computing magazine estimates that the Internet gaming market could reach as much as US$20-billion in revenues by 2001. Electronic Commerce In an August, 1999 report published by eBusiness Journal, women now represent 45 per cent of the 9.2 million online book buyers, 38 per cent of the 7.2 million CD/video buyers, 24 per cent of the 5.4 million buyers of computer hardware and 53 per cent of the 4.5 million buyers of clothing. Women's top shopping items are clothing (6.9 million) and books (6.2 million), while men's top shopping items are cars/car parts (12.6 million) and computers (9.4 million). The small and untapped, yet growing popularity of online grocery shopping currently resulted in a minimal US$69-million dollar annual revenue for 1998. This sector is set to explode in the next two years with anticipated profits of $US250-million, and is expected to become the leader in online sales.

To: richard who wrote (1887)	10/19/1999 4:29:00 PM
From: LORD ERNIE	Respond to of 1968

Management Team At Software Gaming Corp., our key personnel possess the knowledge and the experience required to direct the company now and into the future. Dan Amadori, C.A., Chairman and C.E.O Mr. Amadori is currently the president and founder of Lamerac Financial. Lamerac Financial provides advisory services in mergers, acquisitions, divestitures and corporate finance structuring. During his tenure with Lamerac Financial, Mr. Amadori has completed numerous financial transactions across Canada and the U.S. involving many industry sectors such as transportation, entertainment, forest products manufacturing, high-tech and health care. David Bailey, Chairman, Technical Advisory Board and Director Mr. Bailey has broad management and technical experience in computer software and hardware businesses. In 1980, he became lead founder and CEO of Iomega Corp., which went public in 1982 for $130 million and now has a market capitalization of over $1 billion. In 1983, he founded Cericor Inc., which developed and marketed the first major object-oriented product in the CAD industry. HP purchased Cericor in 1986 for $32 million. In 1987, Mr. Bailey became Chairman and CEO of Clyde Digital Systems, a troubled security software company, where he successfully improved operations and financial performances that led to Clyde merging with RAXCO in 1990, now known as Axent Technology. He is also co-founder and CEO of VZ CORP, a software development company currently using a unique network marketing strategy to market their products. Patrick Best, Director Mr. Best brings extensive worldwide sales and marketing expertise to the company. He has been in the Consumer Packaged Goods (CPG) industry for over 16 years. In the last six years, he founded and built a software company in Canada that supplied merchandising software and applications to the CPG industry and retailers. The company was recently sold to a European firm for almost $100 million. Mr. Best has been a keynote speaker for the Canadian Council of Grocery Retailers, The American Bakery Association, the Food & Consumer Products Manufacturing Council of Canada, the Canadian Food Brokers Association and the EDI Council of Canada. John OBireck, Director Mr. OBireck has over 20 years of experience in marketing and production. Mr. OBireck initially helped build from inception to successful sale two profitable Industrial Electrical Controls Companies through the implementation of new sales strategies, structures and re-positioning of products and services. Mr. OBireck has successfully brought a variety of products to market. His success is attributed to his ability to find quality and innovation, identify market potential and then bring these products to the consumer through traditional and non-traditional distribution channels. Mr. OBireck has been a consultant for a prominent high-tech Canadian company for the past seven years. During this time, he developed a North American representative network to market their proprietary hardware, software and systems engineering skills to the entire industrial sector. Sales and profits for this company have increased more than tenfold during this period.