Tuesday, August 15, 2006

eCOGRA Progress Reort June 20, 2006

eCOGRA PROGRESS REPORT ON JACKPOT FACTORY INCIDENT

20 June 2006

A full investigation is now under way, with an independent team from auditors PricewaterhouseCoopers appointed by eCOGRA.

The investigation will take place at the main base for Jackpot Factory operations, and all parties responsible for the JF marketing and approval system, including outsourced activities and management will be interviewed, and the appropriate systems examined in detail.

The intention is to fully and objectively test JF's explanation of events, examine ongoing measures to remove the offensive material from the Internet and make recommendations to ensure that there is no recurrence.

Jackpot Factory management has been cooperative in this endeavour, giving an undertaking that they will render all assistance necessary to enable the investigative team to complete their work, and reiterating their determination to remove the material in question from the Internet. They have made a financial commitment towards the cost of the inspection.

Once the inspection has been completed an unbiased report prepared by PriceWaterhouseCoopers will be submitted to the eCOGRA independent directors responsible for operational issues, who will consider this document before making appropriate decisions, at which point a further and hopefully final public report will be issued.

Signed:

Andrew Beveridge, CEO