May 16, 2005

Bingo.com Announces First Quarter Results

ANGUILLA, B.W.I., May 16, 2005 / Bingo.com, Ltd. (OTC BB: BNGOF), operator of the Internet’s pre-eminent bingo portal, today announced its financial results for the first quarter ended March 31, 2005. All amounts are presented in United States dollars and in accordance with United States Generally Accepted

Accounting Principles. Highlights of the first quarter 2005 included:

  • Revenue increased to $403,551, an increase of 64% over revenue of $246,189 in first quarter of 2004
  • First quarter profit of $32,209, the third consecutive positive quarter

“Our continued quarter by quarter increase in revenue is very satisfying”, remarked Tarrnie Williams, the Company’s CEO. “We look forward to continued growth accelerated by the upcoming launch of our new cash bingo games.”

Revenue increased to $403,551 for the quarter ended March 31, 2005, an increase of 64% from revenue of $246,189 for the same period in the prior year and an increase of 3% from revenue of $389,921 in the fourth quarter of 2004. The majority of the Company�s revenue was earned from the sale of advertising on its Web portal, www.bingo.com, which experienced strong traffic throughout the quarter.

Operating costs, before interest, depreciation and amortization expenses, increased to $265,282 in the first quarter of 2005, an increase of 65% over operating costs of $161,034 for the first quarter in the prior year, and an increase of 8% over operating costs of $244,628 for the fourth quarter of 2004. The increase in operating costs compared to the first quarter in the prior year is due to a variety of factors including: the costs incurred in the set up and design of the new cash bingo games; an increase in salaries; an increase in legal expenses as a result of merging the Company with its subsidiary in Anguilla, British West Indies and the filing of the Form S-4 with the Securities Exchange Commission; and the printing and mailing of the Form S-4 to our shareholders.

Interest, depreciation and amortization totaled $8,240 for the quarter ended March 31, 2005 compared to interest, depreciation and amortization of $76,681 for the first quarter of 2004, and compared to interest, depreciation and amortization of $7,615 for the fourth quarter of 2004. The 89% decrease in interest, depreciation and amortization for the first quarter of 2005 compared to the first quarter of 2004 is due to the conversion of both Debenture A and Debenture B into shares of the Company during the year ended December 31, 2004. The 8% increase in interest, depreciation and amortization for the first quarter of 2005 compared to the fourth quarter of 2004 is due to the acquisition of equipment for the hosting of the new cash bingo games.

Net profit for the quarter ended March 31, 2005, amounted to $32,209, a significant improvement over the net loss of $38,479 for the first quarter in the prior year and a 49% decrease in net profit compared to net profit of $63,591 for the fourth quarter of 2004. The increase in net profit compared to the first quarter of 2004 is due to the increase in revenue. The decrease in net profit compared to the fourth quarter of 2004, is due to an increase in costs including: legal expenses for merging the Company with its subsidiary in Anguilla, British West Indies; filing of the Form S-4 with the Securities Exchange Commission; printing and mailing of the Form S-4 to our shareholders; and costs incurred in the set up and design of the new cash bingo games.

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