Recent News

Fortuna Gaming Corp (OTCBB: FGAM)

Fortuna Gaming Corp, through its subsidiary Fortuna Gaming (UK) Limited, headquartered in London, England, is currently undergoing various initiatives relating to its mobile gaming platform, including "Texas hold 'em" play for free: in North America and is soon to launch its "pay for play" in Europe and Asia.

FGAM has recently signed a Letter of Intent to acquire all of the assets of G-Fed Games. G-Fed Games is a leader in the online gaming industry, creating the best games available. With a complete casino platform as well as many other innovative solutions, they ensure successful promotion and marketing in this explosive industry. They will add to Fortuna the following:

• Proprietary on-line gaming software for 80+ interactive casino games written in 15 languages and linked to an integrated e-cash processing capability in 4 currencies
• An international player database of 650,000 registered players and an active base of 65,000
• An annual revenue base of approximately $24 million and approximately $4.5 million in earnings
• Exclusive rights to 150 domain names
• A network of 35,000 registered Affiliates and an active base of 1,500 Affiliates
• Back-end customer service and management systems such as Multi-level commission programs, operational web sites, a player tracking and onus system, merchant processing back-end systems, marketing support programs, 24/7 customer support system for players and affiliates, and back-end accounting systems
• A live chat network
• A team of 64 programmers, designers and customer support personnel

Fundamental Outlook

• The purchase price for the G-Fed acquisition is $18 million. FGAM is paying 4X earnings ($4.5 million in earnings on approximately $24 million in revenues for their year ended Sept. 30, 2005).
• FGAM expects to see a steady growth in sales over the next 3 years and have provided gross revenue projections as follows:
  2006 - $42 million
  2007 - $72 million
  2008 - $91 million