Bingo.com, Ltd.
OTC Bulletin Board : BNGOF

Bingo.com, Ltd.

March 29, 2006 15:38 ET

Bingo.com Announces Fourth Quarter and Year End Results

ANGUILLA, BRITISH WEST INDIES--(CCNMatthews - March 29, 2006) - Bingo.com, Ltd. (OTCBB:BNGOF), operator of the World's Largest Bingo Hall, today announced its financial results for the fourth quarter and year end December 31, 2005. All amounts are presented in United States dollars and in accordance with United States Generally Accepted Accounting Principles.

Highlights of the 2005 fiscal year included:

- Revenue increased to $1,981,061, an increase of 71% over revenue of $1,158,620 in 2004

- Fourth quarter revenue increased to $654,438, an increase of 41% over revenue of $465,733 in the third quarter of 2005

- Fourth quarter gaming revenue increased to $353,348, an increase of 79% from third quarter gaming revenue of $197,873

- 2005 Net profit of $120,790

"2005 was a landmark year for Bingo.com," stated Tarrnie Williams, the Company's CEO. "Our online gaming strategy was successfully implemented and has recorded strong growth since its initial launch. With our reduced reliance on advertising revenue, Bingo.com is now in a position to increase its marketing efforts and drive significant traffic into the cash games. We expect 2006 to be a record year for online bingo and Bingo.com."

Bingo.com, Ltd. (the "Company") ended the 2005 fiscal year with total revenue of $1,981,061, an increase of 71% over the previous year's revenue of $1,158,620. Revenue for the fourth quarter of 2005 increased to $654,438 from $465,733 in the third quarter of 2005 and $389,921 in the fourth quarter of 2004. During the year ended December 31, 2005, we introduced traditional bingo for cash to our players. Our revenue from the cash bingo gaming operations amounted to $594,582 for the year ended December 31, 2005. Of the $654,438 in revenue for the quarter, the cash bingo operations provided revenue of $353,348, an increase of 79% from revenue of $197,873 in the third quarter of 2005. This increase is due to an increase in the number of cash bingo players. Advertising Revenue increased to $1,386,479 for the year ended December 31, 2005, an increase of 20% over revenue of $1,158,620 for the same period in the prior year. The Company earned advertising revenue of $301,090 in the fourth quarter of 2005, an increase of 12% from advertising revenue of $267,860 in the third quarter of 2005. The Company's advertising revenue was earned from the sale of advertising on its Web portal, www.bingo.com, which experienced strong traffic throughout the year.

Operating costs before interest, depreciation and amortization expenses increased in 2005 to $1,409,739, from $692,952 for the prior year, an increase of 103%. Operating costs before interest, depreciation and amortization expenses were $479,781 for the quarter ended December 31, 2005, an increase of 96% compared to costs of $244,628 for the same period in the prior year and an increase of 45% compared to costs of $329,936 in the third quarter of 2005. The increase in operating costs compared to the prior year is primarily due to the commencement of the cash bingo operations during the 2005 fiscal year, especially incentive bonuses used in player acquisition and customer relations staff. Interest, depreciation and amortization totaled $48,160 and $8,066 for the year and quarter ended December 31, 2005, respectively, compared to $341,576 and $7,615 for the year and quarter ended December 31, 2004, respectively. The 85% decrease in interest, depreciation and amortization for the 2005 fiscal year is due to the conversion of both Debenture A and Debenture B into shares of the Company during the year ended December 31, 2005.

The Company ended the 2005 fiscal year with a net income of $120,790, or $0.00 per share, an improvement compared to a net loss of $71,640, or $0.00 per share for the prior fiscal year. The net income for the quarter ended December 31, 2005 amounted to $40,095 a 37% decrease over the net income of $63,591 for the same period in the prior year. This decrease in net income is due to the increased costs incurred in the commencement of gaming operations during the 2005 financial year.

About Bingo.com

Bingo.com, Ltd. operates the popular web portal www.bingo.com offering free games including multiplayer bingo, video poker, sweepstakes, slot machines, and more. With over 1,500,000 registered users and more than 800 new users everyday, www.bingo.com is one of the most recognized and most visited Bingo entertainment destinations on the web.

The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made or to be made by the company) contains statements that are forward-looking, such as statements relating to anticipated future success of the company. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ materially from those expressed in any forward-looking statements made by or on behalf of the company. For a description of additional risks and uncertainties, please refer to the company's filings with the Securities and Exchange Commission. Specifically, readers should read the Company's Annual Report on Form 10-KSB, filed with the SEC on March 29, 2006, and the prospectus filed under Rule 424(b) of the Securities Act on March 9, 2005, for a more thorough discussion of the Company's financial position and results of operations, together with a detailed discussion of the risk factors involved in an investment in Bingo.com, Ltd.



BINGO.COM, LTD.
(Formerly Bingo.com, Inc.)
Consolidated Balance Sheets

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December 31, 2005 2004
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Assets
Current assets:
Cash $ 1,071,088 $ 74,032
Accounts receivable 166,540 56,588
Inventory 559 864
Prepaid expenses 102,040 19,083
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Total Current Assets 1,340,227 150,567

Equipment, net (Note 3) 96,273 118,933

Other assets 17,310 7,659

Domain name rights and intangible
assets (Note 4) 1,284,842 1,294,730

Deferred tax asset, less valuation
allowance of $1,004,060 (2004 -
$3,140,726) (Note 8) - -

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Total Assets $ 2,738,652 $ 1,571,889
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 487,226 $ 466,864
Accrued liabilities 64,657 74,319
Accounts payable and accrued
liabilities - related party (Note 9) 71,237 119,260
Unearned revenue 135,252 115,500
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Total Current Liabilities 758,372 775,943

Long term loan payable - related party
(Note 9) 9,403 157,042

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Total Liabilities 767,775 932,985
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Commitments (Note 7)

Stockholders' equity (Note 6):
Common stock, no par value, unlimited
shares authorized, 26,775,903 shares
issued and outstanding (December 31,
2004 - 24,399,086) 11,284,281 10,095,698
Stock options exercised -
subscription shares 22,600 -
Accumulated deficit (9,360,584) (9,481,374)
Accumulated other comprehensive loss:
Foreign currency translation adjustment 24,580 24,580
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Total Stockholders' Equity 1,970,877 638,904

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Total Liabilities and Stockholders'
Equity $ 2,738,652 $ 1,571,889
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See accompanying notes to consolidated financial statements.


BINGO.COM, LTD.
(Formerly Bingo.com, Inc.)
Consolidated Statements of Operations

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Years ended December 31, 2005 2004
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Advertising revenue $ 1,386,479 $ 1,158,620
Cash bingo revenue 594,582 -
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Total revenue 1,981,061 1,158,620

Cost of producing revenue 485,419 245,594
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Gross profit 1,495,642 913,026
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Operating expenses:
Depreciation and amortization 45,942 26,347
General and administrative 421,162 213,766
Salaries, wages, consultants and
benefits 532,654 400,521
Selling and marketing 429,255 51,452
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Total operating expenses 1,429,013 692,086
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Income before other income (expense)
and taxes 66,629 220,940

Other income (expense):
Foreign exchange losses (25,296) (27,213)
Gain on settlement of debt 60,482 42,933
Loss on disposal of equipment (1,372) -
Interest expense (2,218) (55,406)
Interest expense - warrants - (259,823)
Interest income 12,662 6,879
Other income 9,903 50
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Income (loss) before income taxes 120,790 (71,640)

Income tax expense - -
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Net income (loss) $ 120,790 $ (71,640)
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Net income (loss) per common share,
basic (Note 2) $ 0.00 $ (0.00)
Net income (loss) per common share,
diluted (Note 2) $ 0.00 $ (0.00)
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Weighted average common shares
outstanding, basic (Note 2) 26,066,441 20,183,438
Weighted average common shares
outstanding, diluted (Note 2) 29,447,967 20,183,438
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See accompanying notes to consolidated financial statements.


BINGO.COM, LTD.
(Formerly Bingo.com, Inc.)
Consolidated Statements of Cash Flows

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Years ended December 31, 2005 2004
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Cash flows from operating activities:
Net income (loss) $ 120,790 $ (71,640)
Adjustments to reconcile net loss to
net cash provided by operating
activities:
Depreciation and amortization 45,942 26,347
Gain on settlement of debt (60,482) (42,933)
Amortization of warrants - debenture
discount - 259,823
Loss on disposal of equipment 1,372 -
Changes in operating assets and
liabilities:
Accounts receivable (109,952) 10,986
Prepaid expenses (82,957) (4,854)
Inventory 305 (201)
Other assets (9,651) 3,138
Accounts payable and accrued
liabilities 23,159 (80,771)
Unearned revenue 19,752 90,989
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Net cash (used in) provided by
operating activities (51,722) 190,884

Cash flows from investing activities:
Acquisition of equipment (14,976) (90,146)
Acquisition of intangible asset - (49,436)
Proceeds on disposal of equipment 210 -
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Net cash used in investing activities (14,766) (139,582)

Cash flows from financing activities:
Exercise of warrant "B" 145,000 -
Exercise of stock options 38,833 22,500
Exercise of stock options -
subscription shares 22,600 -
Private Placement 1,004,750 -
Repayment of loans and notes payable (147,639) (33,816)
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Net cash provided by (used in)
financing activities 1,063,544 (11,316)

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Net increase in cash 997,056 39,986

Cash, beginning of year 74,032 34,046
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Cash, end of year $ 1,071,088 $ 74,032
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Supplementary information:
Interest paid $ 2,218 $ 2,662
Income taxes paid $ - $ -
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See accompanying notes to consolidated financial statements.



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