TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

December 23, 2009 09:29 ET

TransGaming Closes Approximately $9,000,000 Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 23, 2009) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR RELEASE TO US NEWS WIRE SERVICES

TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company"), a leading developer of innovative products for the electronic entertainment industry, announced today that it closed $8,912,240 of which $8,412,240 was raised pursuant to a brokered private placement offering (the "Offering") of units ("Units") co-led by Dundee Securities Corporation and PI Financial Corp. ("Agents").

A total of 12,017,486 Units were issued to subscribers in Canada and the United States. Each Unit, priced at $0.70, is comprised of one (1) common share of the Company ("Common Share") and one-half (1/2) of one common share purchase warrant ("Warrant"). Each whole Warrant entitles the holder to purchase one Common Share at an exercise price of $1.00 at any time on or before the 24-month anniversary of the closing date.

In addition to the brokered component of the Offering, TransGaming issued directly to subscribers in the United States a total of 714,285 Units, raising additional gross proceeds of $500,000.

The Company paid the Agents consideration of a cash commission of $497,776 and issued broker warrants giving the Agents the right to acquire 691,229 Common Shares at a price of $0.70 per Common Share at any time on or before the 24-month anniversary of the closing date.

The securities issued under the Offering are subject to a hold period expiring, in Canada, on April 24, 2010 and, in the United States, no earlier than April 24, 2010, as required under applicable securities legislation and the policies of the TSX Venture Exchange.

The net proceeds of the financing will be used for the growth of the Company's GameTree.tv business unit and general corporate purposes. The Company plans to build out its development and operational teams to support the GameTree.tv infrastructure requirements.

Ogilvy Renault LLP represented TransGaming in connection with the offering and Osler, Hoskin & Harcourt LLP represented Dundee Securities Corporation and PI Financial Corp.

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 Inc. (TSX VENTURE:TNG), is a leader in the development of unique software portability products that facilitate the deployment of games across multiple platforms. TransGaming's portability technologies significantly reduce the time-to-market for and costs associated with multi-platform game releases. TransGaming works with many of the industry's leading developers and publishers to enable their games on the Mac and Linux operating systems, and currently markets its products under four brand names: Cider (Mac Gaming), Cedega (Linux Gaming), SwiftShader (Graphics Rendering) and GameTree (Game Publishing & Distribution). TransGaming is headquartered in Toronto, Canada and maintains a research and development center in Ottawa, Canada. To learn more about TransGaming's products visit www.transgaming.com.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

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

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