World Gaming Restructures Relationship with Sportingbet

9 Aug 2004

UNITED KINGDOM – (PRESS RELEASE) -- World Gaming plc (OTC BB: WGMGY) and its affiliates, a UK-based Internet-gaming software and e-business services group of companies ("World Gaming") is pleased to announce the restructuring of its relationship with its major customer Sportingbet PLC and its affiliates ("Sportingbet").

Highlights

- World Gaming to enter into an agreement with Sportingbet to transfer a 50% interest in the World Gaming software for the following consideration:

- U.S. $10 million cash under staged payments;

- Additional consideration of U.S. $3.3 million as value for:

- Cancellation of all economic and voting rights attached to Sportingbet's existing 29.5% holding in World Gaming;

- Forgiveness of the convertible loan note owed to Sportingbet with a face value of U.S. $900,000.

- Future development of the software to be funded by Sportingbet in an amount equal to at least $4.5 million over 4 years, in return for a perpetual royalty free licence to its use within the Sportingbet group.

- Development Plan to improve the software for World Gaming licensees and Sportingbet to be agreed by both parties.

- World Gaming to have full rights to full use of the software including enhancements for the duration of the partnership agreement plus the ability to continue sub-licensing the software to third parties.

- World Gaming to enter into an exclusive hosting agreement for Sportingbet's U.S. facing database on a cost-plus basis.

- World Gaming to acquire new marketing rights over Sportingbet's multi- lingual and multi-currency European software to market to existing and new licensees of World Gaming throughout Europe.

- World Gaming to seek new licensees and explore other business development objectives.

Commenting on the transaction, Daniel Moran, Chief Executive of World Gaming said: "We are pleased that we have now successfully resolved this issue with Sportingbet allowing for continued growth in the World Gaming software and infrastructure. The restructured relationship not only stabilizes World Gaming's future but will allow us to move forward and expand into new markets as well as open new investment opportunities that previously were not possible."

Nigel Payne, Chief Executive of Sportingbet said: "We are pleased to have agreed new arrangements with World Gaming which will give Sportingbet greater control over the software platform for its U.S. facing business and, importantly, over the future development of that software. Furthermore, these arrangements will also reduce our costs significantly going forward.

"We are also pleased that these arrangements will allow World Gaming to emerge a stronger, more profitable business independent of Sportingbet's revenue streams."

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	World Gaming Restructures Relationship with Sportingbet 9 Aug 2004 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> UNITED KINGDOM – (PRESS RELEASE) -- World Gaming plc (OTC BB: WGMGY) and its affiliates, a UK-based Internet-gaming software and e-business services group of companies ("World Gaming") is pleased to announce the restructuring of its relationship with its major customer Sportingbet PLC and its affiliates ("Sportingbet"). Highlights - World Gaming to enter into an agreement with Sportingbet to transfer a 50% interest in the World Gaming software for the following consideration: - U.S. $10 million cash under staged payments; - Additional consideration of U.S. $3.3 million as value for: - Cancellation of all economic and voting rights attached to Sportingbet's existing 29.5% holding in World Gaming; - Forgiveness of the convertible loan note owed to Sportingbet with a face value of U.S. $900,000. - Future development of the software to be funded by Sportingbet in an amount equal to at least $4.5 million over 4 years, in return for a perpetual royalty free licence to its use within the Sportingbet group. - Development Plan to improve the software for World Gaming licensees and Sportingbet to be agreed by both parties. - World Gaming to have full rights to full use of the software including enhancements for the duration of the partnership agreement plus the ability to continue sub-licensing the software to third parties. - World Gaming to enter into an exclusive hosting agreement for Sportingbet's U.S. facing database on a cost-plus basis. - World Gaming to acquire new marketing rights over Sportingbet's multi- lingual and multi-currency European software to market to existing and new licensees of World Gaming throughout Europe. - World Gaming to seek new licensees and explore other business development objectives. Commenting on the transaction, Daniel Moran, Chief Executive of World Gaming said: "We are pleased that we have now successfully resolved this issue with Sportingbet allowing for continued growth in the World Gaming software and infrastructure. The restructured relationship not only stabilizes World Gaming's future but will allow us to move forward and expand into new markets as well as open new investment opportunities that previously were not possible." Nigel Payne, Chief Executive of Sportingbet said: "We are pleased to have agreed new arrangements with World Gaming which will give Sportingbet greater control over the software platform for its U.S. facing business and, importantly, over the future development of that software. Furthermore, these arrangements will also reduce our costs significantly going forward. "We are also pleased that these arrangements will allow World Gaming to emerge a stronger, more profitable business independent of Sportingbet's revenue streams."