Review of the Three Months Ended June 30, 2000 Compared with the Three Months Ended June 30, 1999

Revenues increased to $436,312 for the quarter ended June 30, 2000 from $77,215 for the quarter ended June 30, 1999. The growth in revenues results from higher royalties and support and maintenance charges. The royalty revenue increased to $340,812 in 2000 from $62,215 in 1999 reflecting the increased activity of the company's existing licensee and the addition of royalty income from a new licensee, which commenced operations in the quarter. Support and maintenance revenue was $95,500 for the quarter ended June 30, 2000 resulting from upgrades being made to the CyberBingo(TM) software and related systems, the redevelopment of the CyberBingo(TM) website, ongoing maintenance to the Antiguan licensee and the development and delivery of marketing and promotional programs. In 1999, support and maintenance revenue was $15,000. Licensing revenues were nil for the quarter ended June 30, 2000 although the company did receive a deposit from a new software licensee who is in the process of establishing its operations and will operate an Internet Bingo hall. Licensing revenues were nil in the similar period in 1999 as the company only had one licensee for that period, with the initial license fee having been paid in 1998. It is anticipated that the new licensees will continue to diversify the company's concentration of revenue for the remainder of fiscal year 2000. The new licensees will also provide additional royalties and support and maintenance revenue, which will be in addition to initial license fees where applicable

Operating expenses increased to $368,592 for the quarter ended June 30, 2000 from $173,433 for the same quarter in 1999. The increased operating expenses reflect the significantly higher level of activity at the company. During fiscal 1999, the company had limited operations in the first half of the year, resulting in significantly lower expense levels. Marketing expenses were $38,421 for the second quarter of 2000 compared to $60,000 for the second quarter in 1999. The decrease is due primarily to the company replacing an outside marketing firm with a senior marketing employee. Development expenses grew to $139,901 for the three months ended June 30, 2000 from $67,147 in 1999. The primary reason for the increase in development expenses results from the hiring of software developers and consultants to improve the company's products and services and to create additional internet games. General and administrative expenses increased to $190,270 for the quarter ended June 30, 2000 from $46,286 for the similar period in the prior year. The increase results from the remuneration of its senior management, the leasing of larger office space, professional fees and the incurrence of the related expenses associated with the higher level of activity of the company which were expenses not incurred during the first quarter of 1999. Of note is that the company employed approximately 20 people at June 30, 2000 as compared to 3 at the same time in 1999.

The company had a net profit of $41,074 for the three months ended June 30, 2000 compared to a loss of $(96,218) in 1999 resulting from the higher levels of revenue offsetting expense requirements. As the company increases the number of its licensees and introduces new products it is anticipated that profitability will continue. There was a $26,646 tax provision recorded for the second quarter of 2000 based on the profits for the period as compared to nil in the prior year period.

Review of the Six Months Ended June 30, 2000 Compared with the Six Months Ended June 30, 1999

Revenues increased to $742,222 for the six months ended June 30, 2000 from $143,264 for the six months ended June 30, 1999. The growth in revenues results from higher royalties and support and maintenance charges and the assessment of license fees to new software licensees. The royalty revenue increased to $562,722 in 2000 from $117,521 in 1999 reflecting the increased activity of the company's existing licensee and the addition of a new licensee during the second quarter. Support and maintenance revenue was $162,500 for the six months ended June 30, 2000 as a result of higher levels of support as discussed above. In 1999, support and maintenance revenue was $25,000. Licensing revenues totaled $17,000 for the year to date period ended June 30, 2000 as the company has added additional licensees. Licensing revenues were nil in the similar period in 1999 as the company only had one licensee for that period. The company earned $743 of advertising revenue during fiscal 1999 compared to nil in 2000.

Operating expenses increased to $633,107 for the six months ended June 30, 2000 from $238,597 for the same period in 1999. The increased operating expenses reflect the significantly higher level of activity at the company. Marketing expenses were $72,300 for the first half of 2000 compared to $85,800 for the first half of 1999. The decrease is due primarily to the inclusion of a marketing director in the current year where, in the prior year the company was using outside services to market and promote the company and its products. Development expenses grew to $257,172 for the six months ended June 30, 2000 from $81,368 in 1999. The primary reason for the increase in development expenses results from the hiring of software developers and consultants to improve the company's products and services and to create additional internet games. General and administrative expenses increased to $285,635 for the first half of fiscal 2000 from $71,429 for the similar period in the prior year. The increase results from the remuneration of its senior management, the leasing of expanded office space and the incurrence of the related expenses associated with the higher level of activity of the company which were expenses that were significantly less in the prior year. There was $18,000 of stock and stock option compensation expense in the first quarter of fiscal 2000 related to 30,000 common shares bearing a restrictive legend and 50,000 non-qualified options issued to consultants for software development and other services. These options were recorded as compensation expense in accordance with the provisions of SFAS No. 123, based on the value of the consulting services. There was no similar expense in 1999.

The company had a net profit of $65,469 for the six months ended June 30, 2000 compared to a loss of $(95,333) in 1999 resulting from the higher levels of revenue offsetting expense requirements. There was a $43,646 tax provision recorded for the first half of 2000 based on the profits for the period as compared to nil in the prior year period.

Liquidity and Capital Resources

At June 30, 2000 the company had cash resources of $510,281 as compared with $51,707 at December 31, 1999.

At June 30, 2000 the company had working capital of approximately $733,000 as compared with approximately $150,000 at December 31, 1999. The increase primarily reflects the issuance of 200,000 units of equity instruments in a private placement financing. The unit price was $2.50 per share providing proceeds of approximately $455,000 after associated expenses. Each unit consists of one share of the company's common stock and one warrant to purchase a share of common stock at a price of $4.00 per share. The company intends to use these funds to further develop its current products, create and develop new products and to expand its sales and marketing efforts to increase the number of licensees of its products.

At June 30, 2000, total assets increased to $1,246,661 from $705,638 at December 31, 1999. The increase is due primarily to the higher levels of cash associated with the issuance of the units as discussed above as well as an increase in accounts receivable due to the higher level of revenues.

Total liabilities increased marginally to $233,772 at June 30, 2000 from $231,217 at December 31, 1999. This increase is consistent with the heightened level of business activity of dot com in the current period compared to that leading to the year-end December 1999.

Net cash provided by operating activities was $5,659 and $3,574 for the three and six months respectively ended June 30, 2000. These amounts compare to $(133,609) and $(232,227) in the prior year. The improvement results from higher net income, increased non-cash expenses and lower increase in non-cash working capital items. During the first quarter of 2000 the company issued common stock for net proceeds of $455,000 as described above. In the first quarter of 1999 the company issued 6,500,000 common shares for proceeds of approximately $248,000. There was a net increase in cash of $458,574 for the first half of 2000 as compared to $16,193 for the same period in 1999.

The company intends to continue to pursue financing activities such as further equity offerings and has obtained a line of credit supported by its cash resources to support its ongoing investment in activities to generate increased revenues and profitability for the company.

There are presently no material commitments for capital expenditures. Due to the nature of its business, the company does not require significant outlays for capital expenditures and, as a result, is not planning for any material capital expenditures for the foreseeable future, unless and until additional financing is realized.

Risks and Uncertainties

The company has identified that there is uncertainty in North America relating to the lawfulness of Internet gaming. As such, notwithstanding the fact that its licensees operate from countries where such business is lawful if licensed, governments elsewhere, including the federal, state or any local governments in the United States may take the position that the company's software and support systems are being played and or used unlawfully in their jurisdiction. Accordingly, the company may face criminal prosecution in any number of jurisdictions, either for operating an illegal gaming operation, or as aiding and abetting others, such as its licensees, in operating an illegal gaming operation. The company has devoted only limited resources to investigating the legal climate in which it operates. Many of the issues facing the company are the same as those facing all other e-commerce and Internet software providers, as current laws are not clear as to who, if anyone, has jurisdiction over Internet-based commerce. A number of proposals have been presented in the United States congress to expressly ban Internet gaming. Some of these proposals have recently been defeated. Although the company intends to do business worldwide, any enforceable ban on Internet gaming in the United States would have a material adverse effect on the company's business and both its short-term and long-term liquidity and its revenues from operations.

Year 2000 Risks

In FY1999, the potential existed and dot com was exposed to a risk that certain of its systems or those of licensees would fail or suffer impairment as a result of the Year 2000 issue (hereinafter "Y2K"). Y2K relates to the rollover date of programming defaulting to 01/01/1900 rather than 01/01/2000 (the "Rollover Date"). Although there was no impact on the company or its licensees on the Rollover Date and management believes that all hardware is Y2K compliant, there may still be a risk that the company's reliance on certain hardware systems, software and related services could result in a complete system failure to its software and/or hardware systems and/or any related information technology system including communication systems.