PGGG Pegasus Gaming Corp (CE)

Pegasus Gaming Corp. (Pink Sheets:PGGG) (http://www.PegasusGaming.com), an I-gaming software and e-commerce services company servicing clients from Europe and Africa, is pleased to confirm that the company is on track to meet 2005 year end financial projections of a net loss of $512,250, after licensing fee payments of $1,000,000. These projections reflect the sale of three licenses and royalty income from those operations. The licensees will commence operations during the fourth quarter of 2005. In addition, the company financial projections for 2006 call for 10 new licensees to be added and to generate net income of $3,765,750 for the year. Actual 2005 financial statements are to be presented in US GAAP and will reflect adjustments to conform to GAAP reporting. 2006 License sales appear to be very strong with due diligence to be completed by 2 South African operators and on signing off by the new operators, the web sites, infrastructure, branding and integration of the required modules to be completed, for operations to commence in the first quarter of 2006. Also for 2006, other income sources such as lottery reseller programs which call for licensees to be authorized to receive commissions on non gaming revenue are being pursued. This income, which could provide licensees with significant revenues, will go substantially towards increasing the net income of the operator, as very little ongoing expenses are involved with the transactions. During the past week, the company's investor relations, and the company itself, has received numerous confirmations that unsolicited material has been received by the public purporting to be disseminated by the company. This material has not been authorized by the company nor its agents and the company will be taking steps to ensure that this material is stopped immediately. The corporate attorney will follow up to ensure that responsibility for the material is allocated. The above statements in regard to Pegasus, which are not purely historical, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including Pegasus Gaming Corp.'s beliefs, expectations, hopes or intentions regarding the future. All forward-looking statements are made as of the date hereof and are based on information available to the parties as of such date. It is important to note that the actual outcome and the actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties, such as technological, legislative, corporate, financial and marketplace changes.