Dynasty Gaming

May 15, 2006 13:48 ET

Dynasty Gaming Advances China Strategy; Signs Prepaid Card Agreement With Leading Chinese Distributor

MONTREAL--(CCNMatthews - May 15, 2006) - Dynasty Gaming Inc. (TSX-V: DNY), today announced a major advance in the roll-out of its China market strategy by signing a letter of intent with Beijing Junnet Union Science and Technology Limited Company ("Junnet") covering the promotion, marketing and distribution of Mahjong prepaid cards in China. Prepaid cards, similar to telephone calling cards, are widely used by people in China for accessing and playing various online sports and casual games with opportunities for winning reward points redeemable for prizes. It is estimated that prepaid card sales in China total Yuan 4.5 billion or approximately C$640 million annually.

Junnet is China's largest distributor of prepaid cards, accounting for approximately 20% of the country's estimated annual market for prepaid cards. Junnet operates 13 branches across the country and provides over 76,000 distribution outlets, including 70,000 Internet cafes. More than 20 million people spend time in these cafes each and every day, giving rise to millions of prepaid card transactions.

"Our involvement with Junnet represents a giant step forward as a means of accessing the world's largest and fastest growing Internet marketplace and creating a first-to-market footprint for our online Mahjong gaming product in a country where mahjong is acknowledged as China's national sport," said Dynasty's Chief Executive, Albert Barbusci. "Junnet is widely known and recognized as a distributor of quality prepaid cards through retail kiosks and Internet cafes. Its J-cards, which are currently marketed for around 30 different online games, are re-loadable online, and the Company's wide network of promotional websites represents a powerful and effective marketing forum."

It is envisaged that Dynasty will sell quantities of cards directly to Junnet, which in turn, will sell them to sub-agents at each of its distribution points. Each card will contain a pin number and credit for a fixed number of Mahjong games. After all of the game credit has been drawn down, players may either re-load their existing card online or purchase a new card. Retail pricing for the cards will be determined only after Junnet completes market testing over the next three months.

Junnet has strong relationships with many of China's leading sports and casual gaming operators and over the next few months Junnet will secure sites on which Dynasty's Mahjong Mania software will be installed and market-tested through the use of selectively distributed prepaid cards. Junnet and Dynasty are optimistic that retailing of the cards can begin in the final quarter of this year.

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this news release.

Forward-looking Statements

This press release contains certain forward-looking statements with respect to the Corporation. These forward-looking statements, by their nature, involve risks and uncertainties that could cause actual results to differ materially from those contemplated. We consider the assumptions on which these forward-looking statements are based to be reasonable, but caution the reader that these assumptions regarding future events, many of which are beyond our control, may ultimately prove to be incorrect.

About Dynasty Gaming Inc.

Dynasty Gaming Inc. is solidifying a two-phased strategy to secure a lead position in the Chinese market and within the international online gaming sector with its first-to-market software for an aggregate player, cash wager version of Mahjong, the world's most played game. Through its wholly owned subsidiaries, the company develops, markets, licenses and supports the Mahjong Mania software. Since marketing began in the second half of 2005, a number of license agreements have been signed including a contract with Ladbrokes, the world's largest online sports book (www.Ladbrokes.com) whose site now hosts a customized version of Mahjong Mania. Dynasty has also signed Golden Palace one of the largest on-line casinos operators. Dynasty Gaming's 77.2 million common shares, issued and outstanding, are widely held by Canadian and U.S. investors. Full information on Dynasty Gaming can be found at www.dynastygaming.com.

Contact Information

  • Albert Barbusci
    Dynasty Gaming Inc.
    (514) 288-0900 Ext. 224
    Thomas Walsh
    Alliance Advisors, LLC
    (646) 415-8321