POKER.COM, INC.
Second Quarter Report

Consolidated Balance Sheets
(U.S. Dollars)
(Unaudited)
                                        June 30,   December 31,
                                          2001          2000
Assets
Current
 Cash                                   $164,193        $41,775
 Accounts receivable, net of
  $18,750 allowance for bad debts        602,916        456,032
 Prepaid expenses                          5,000         50,229
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Total Current Assets                     772,109        548,036
Long-Term Receivable                     140,000        140,000
Property and Equipment                   142,461        161,755
Intangible Assets                        243,212        218,346
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Total Assets                          $1,297,782     $1,068,137
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Liabilities
Current
 Accounts payable and
  accrued liabilities                   $602,520       $562,570
 Advances from related parties               424          6,828
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Total Liabilities                        602,944        569,398
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Stockholders' Equity
Preferred Stock, $0.01 par value, 5,000,000 shares authorized, no
shares issued and outstanding
Common Stock and Paid-In Capital in Excess of $0.01 Par
100,000,000 Shares authorized
 16,950,000 (December 31, 2000 -
             16,935,000) shares
             issued and outstanding    1,482,818      1,469,235
Subscriptions Received                    32,480         22,480
Other Comprehensive Income                10,867          4,755
Deficit                                (831,327)      (997,731)
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Total Stockholders' Equity               694,838        498,739
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Total Liabilities and
 Stockholders' Equity                 $1,297,782     $1,068,137
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Consolidated Statements of Income
(U.S. Dollars)
(Unaudited)
                      Three Months Ended       Six Months Ended
                             June 30,               June 30,
                        2001        2000        2001       2000
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Revenue
 Marketing and
  sublicensing      $349,113    $320,625    $800,807   $577,845
Cost of Goods Sold    15,527      65,634      71,573     94,323
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Gross Margin         333,586     254,991     729,234    483,522
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Expenses
 Website marketing    74,418     119,434     166,976    340,102
 Wages                56,038           0     107,677          0
 Corporation
  promotion           48,619      44,961      66,812    112,432
 Management and
  consulting fees     29,311      21,906      51,896     41,001
 Royalties            19,447      67,892      50,184     65,623
 Office supplies
  and services        16,046      42,993      29,998     83,330
 Professional fees     9,474      19,051      11,694     22,013
 Bad debts            11,000           0      11,000          0
 Rent                  4,524       7,895       9,157     14,526
 Depreciation
  and amortization    28,540      53,483      57,436     66,824
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Total Expenses       297,417     377,615     562,830    745,851
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Income (Loss) Before
 Income Taxes         36,169   (122,624)     166,404  (262,329)
Income Taxes          16,276           0      74,882          0
 Less: Application
  of loss
   carryforwards    (16,276)           0    (74,882)          0
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Net Income (Loss)
 for Period          $36,169  $(122,624)    $166,404 $(262,329)
=================================================================
Weighted Average
 Number of Common
  Shares
   Outstanding    16,937,637  15,802,746  16,936,657 15,568,094
Dilutive Effect
 of Options        1,621,000   1,410,000   1,621,000  1,410,000
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Weighted Average
 of Shares
 Outstanding
 Assuming Full
 Dilution         18,558,637  17,212,746  18,557,657 16,978,094
=================================================================
Earnings (Loss)
 Per share            $ 0.00    $ (0.01)      $ 0.01   $ (0.01)
=================================================================
Fully Diluted Earnings
 (Loss) Per Share     $ 0.00    $ (0.01)      $ 0.01   $ (0.01)
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Consolidated Statements of Stockholders' Equity
Six Month Period Ended June 30, 2001 and Year Ended December 31,
2000
(U.S. Dollars)
(Unaudited)
                                       June 30,    December 31,
                                         2001           2000
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Shares of Common Stock Issued
 Balance, beginning of period        16,935,000      14,100,000
Issued for
 Settlement of debt                           0         225,000
 Cash                                    15,000       1,080,000
 Subscriptions receivable                     0          30,000
 Subscriptions previously received            0       1,500,000
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Balance, end of period               16,950,000      16,935,000
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Common Stock and Paid-in
 Capital in Excess of Par
  Balance, beginning of period       $1,469,235        $510,000
  Issued for
     Settlement of debt                       0         175,000
     Cash                                 2,250         260,000
     Subscriptions previously
      received                                0         500,000
     Subscriptions receivable                 0          10,000
     Stock option benefit                11,333           4,235
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Balance, end of period               $1,482,818      $1,469,235
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Subscriptions Received
 Balance, beginning of period           $22,480        $500,000
 Issued for subscriptions received            0       (500,000)
 Subscriptions received                       0          32,480
 Subscriptions receivable                10,000        (10,000)
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Balance, end of period                  $32,480         $22,480
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Other Comprehensive Income (Loss)
 Balance, beginning of period            $4,755       $(14,130)
 Foreign currency translation gain        6,112          18,885
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Balance, end of period                  $10,867          $4,755
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Deficit
 Balance, beginning of period        $(997,731)      $(670,518)
 Net income for period                  166,404       (327,213)
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Balance, end of period               $(831,327)      $(997,731)
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Total Stockholders' Equity             $694,838        $498,739
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Consolidated Statements of Cash Flows
Six Month Period Ended June 30
(U.S. Dollars)
(Unaudited)
                                           2001            2000
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Operating Activities
 Net income (loss)                     $166,404      $(262,329)
 Adjustments to reconcile net income to
 net cash used by operating activities
   Stock option compensation expense     11,333               0
   Depreciation and amortization         57,436          66,824
 Changes in non-cash working capital  (118,109)           (767)
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Net Cash Provided by (Used in)
Operating Activities                    117,064       (196,272)
Investing Activity
 Purchase of property, equipment
  and intangible assets                (13,008)        (35,643)
Financing Activity
 Proceeds from exercise of options        2,250               0
 Subscriptions received                  10,000         260,000
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Cash Provided by Financing Activities    12,250         260,000
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Effect of Foreign Currency Translation    6,112         (7,893)
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Inflow of Cash                          122,418          20,192
Cash, Beginning of Period                41,775          41,132
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Cash, End of Period                    $164,193         $61,324
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Supplemental Disclosure of
Non-Cash Transactions
 Reduction of subscriptions previously
  received by issuance of shares             $0        $500,000
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