TransGaming Inc.

TransGaming Inc.

December 11, 2007 10:14 ET

CORRECTION FROM SOURCE: TransGaming Raises $2,201,200 in Financing

TORONTO, ONTARIO--(Marketwire - Dec. 11, 2007) - In the press release issued on December 11, 2007 at 9:00 am ET, a correction was made by TransGaming Inc. in the 5th and 7th paragraphs. The complete and corrected version follows:

TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company"), a leading developer of software portability products for the electronic entertainment industry, announced today that it has raised $2,201,200 pursuant to its previously announced private placement offering (the "Offering") of units ("Units").

A total of 4,002,183 Units were issued to subscribers in Canada and the United States. Each Unit, priced at $0.55, was comprised of one (1) common share of the Company ("Common Share") and one (1) common share purchase warrant ("Warrant"). Each Warrant entitles its holder to purchase one Common Share at an exercise price of $0.85 at any time on or before the 24-month anniversary of the closing date, with a possibility to extend such a period for an additional 18 months should TransGaming become a Tier 1 issuer on the TSX Venture Exchange. In addition, while the Warrants are still outstanding, should TransGaming issue future equity securities for consideration of less than $0.55 per security, the exercise price of the Warrants would automatically adjust to $0.55 per Common Share. Under no circumstances would the exercise price of the Warrants be less than $0.55 per Common Share as a result of any future equity issues.

In Canada, a total of 2,092,728 Units were issued to accredited investors in British Columbia, Ontario, and Quebec, raising gross proceeds of $1,151,000. In consideration for acting as agent for all Canadian subscriptions, CTI Capital Securities Inc. ("CTI") received a corporate finance fee of $20,000 (plus applicable taxes) and broker warrants giving it the right to acquire 167,418 Common Shares at a price of $0.55 per Common Share at any time on or before December 11, 2009. CTI also shared a cash commission of $90,680 with members of the selling group.

In addition to the Canadian component of the Offering, TransGaming issued directly to subscribers in the United States a total of 1,909,455 Units, raising gross proceeds of $1,050,200.

The securities issued under the Offering are subject to a hold period expiring, in Canada, on April 12, 2008 and, in the United States, no earlier than April 12, 2008, as required under applicable securities legislation and the policies of the TSX Venture Exchange.

TransGaming has experienced positive growth in recent quarters and expects to use the net proceeds of the Offering to expand the Company's operations into the United States, and scale its development, R&D, and marketing teams towards more rapid growth. As the Offering was not fully subscribed, TransGaming intends to proceed with an additional closing session on a best-efforts basis.

The units sold, and the common shares and warrants underlying such units have not and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale or the solicitation of an offer to buy the securities in the United States.

Forward-Looking Statements

Certain statements in this press release may include "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements of TransGaming to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "will", "expect", "anticipate", "project", "believe", "plan", and other similar terminology. The risks and uncertainties are detailed from time to time in reports filed by TransGaming with the securities regulatory authorities in certain of the provinces and territories of Canada. New risk factors may arise from time to time and it is not possible for management to predict all of those risk factors or the extent to which any factor or combination of factors may cause actual results, performance and achievements of TransGaming to be materially different from those contained in forward-looking statements. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results.

About TransGaming Inc.

TransGaming is a leader in the development of software portability products that allow game developers and publishers to develop games for one system and deploy them across multiple platforms - faster, cheaper and better than anyone else. TransGaming is headquartered in Toronto, Canada and maintains a research and development center in Ottawa, Canada. More information about the company can be obtained at

About CTI Capital Securities Inc.

CTI Capital is a full-service boutique securities dealer, offering debt and equity trading, portfolio management, research, retail brokerage, and investment banking services. The investment banking department specializes in initial public offerings and new issues, private placements, reverse take-overs, capital pool companies, mergers and acquisitions, and exchange sponsorships for emerging growth-oriented companies.

The TSX Venture Exchange does not accept the responsibility for the adequacy or accuracy of this release.

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