Phantom Fiber Corporation
OTC Bulletin Board : PHFB

Phantom Fiber Corporation

August 23, 2005 09:00 ET

Phantom Fiber Signs License Agreement with New Media Lottery Services to Extend Market Reach with Mobile Lottery Applications

TORONTO, ONTARIO--(CCNMatthews - Aug. 23, 2005) -

Strategic deal further strengthens Phantom Fiber's wireless platform reach into lottery and enhances New Media Lottery Services' offering with state governments

Phantom Fiber Corporation ("the Company") (OTCBB:PHFB), the leading developer of wireless platform software, is pleased to announced that it has signed a five-year license agreement with News Media Lottery Services Inc. ("NMLS"), the leading technology management firm specializing in new media sales applications for the lottery industry. Under terms of the agreement, the Company will enable NMLS' suite of lottery games for use on mobile lottery terminals owned and operated lotteries authorized by state governments. In addition, New Media Lottery Services Inc. is expected to list in the very near future.

NMLS' core business is divided into two segments which includes the development and supply of lottery management systems and the development and supply of new lottery games. Management systems provide state authorized lotteries with all the accounting, distribution, sales and management tools necessary to effectively and efficiently sell lottery products via Mobile, Internet, and Interactive TV devices. NMLS' management system is scalable to allow for multiple users and a full-menu of lottery gaming products - gaming products which are modular and allow clients to select from a full compliment of game formats, themes and styles. In addition, the core management team is composed of experienced lottery industry professionals who have positioned NMLS as the premier operator of lottery programs for mid-sized lotteries.

NMLS plans to offer dozens of video lottery games plus multi-million dollar progressive jackpots in contracted countries across mobile, Internet, and retail channels with jackpots in excess of $2 million per week and also plans to partner with charity lotteries in many markets to gain first-mover advantage. Initial mobile plans involve the deployment of mobile lottery terminals powered by Phantom Fiber's Advanced Wireless Platform to capture immediate lottery revenue using NLMS lottery management systems and game products. Mobile lottery terminals will be used in retail and public locations to sell lottery tickets to consumers in a number of select markets.

A recent Juniper Research report has concluded that mobile gambling revenues will total $19.3 billion by 2009, exceeding the forecast of $2 billion for 2005. Furthermore, lotteries will account for the largest portion of revenues totalling $7.9 billion since governments are less censorious about lotteries, as noted by Dr. Windsor Holden from Juniper. He further concludes that the ubiquitous nature of the lottery culture requires only a small percentage of players to use mobile handsets in order to generate the revenues forecasted for this segment of mobile gambling.

Jeff Halloran, President and CEO for Phantom Fiber stated, "We are excited to be working with NMLS on their aggressive mobile lottery initiatives. With a top-notch management team already in place and secured long-term contracts with lottery programs in several regions across the world, NMLS is perfectly positioned to take advantage of Phantom Fiber's Advanced Wireless Platform to extend its lottery game and management systems in retail channels. On the horizon, NMLS plan to offers multi-million dollar progressive jackpots through contracted countries which would allow consumers to use their mobile lottery application on over 1000 mobile devices already supported by our Advanced Wireless Platform. For consumers, wireless lottery is a winning ticket".

Randy Brownell, COO for New Media Lottery Services Inc. said, "We chose Phantom Fiber because their proven advanced wireless platform was already deployed in live wagering environments with significant partners in other gambling verticals. Our short-term objectives always included mobile lottery as a significant part of our business strategy to secure early-mover advantage in contracted markets and help leverage new opportunities in other markets. The total addressable international lottery market of $120 billion is wide-open for both companies to capitalize on the emerging mobile lottery segment with core competences that other competitors cannot even entertain for the foreseeable future."

Safe Harbor Statement

Some statements in this release are "forward-looking statements" as that term is defined in Sections 27A of the Securities Act of 1933 as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934 as amended (the "Exchange Act"), and are subject to certain risks and uncertainties, including, but not limited to, economic conditions, competition, changes in laws and the demand for the company's goods and services, which could significantly affect anticipated future results. Actual results may differ materially from any forward-looking statements.

About New Media Lottery Services Inc.

New Media Lottery Services (NMLS) supplies lotteries with the technology and management support needed to thrive in the new realm of digital lottery product distribution. The NMLS management team has decades of experience in the lottery business and have launched numerous lotteries in jurisdictions throughout the world.

NMLS has a suite of game offerings specifically designed for distribution through various digital media and provides the lottery management system to manage all digital and traditional lottery activities.

About Phantom Fiber Corporation

Phantom Fiber Corporation (OTCBB:PHFB) is the leading developer of wireless platform software that enables our customers to deliver high-performance applications across global communications networks to mobile users. Our wireless platform extends the rich multimedia content and user experience of existing Internet web sites securely and instantly to a wide array of wireless devices including PDAs and programmable cellphones.

This platform is already deployed to most segments of the global gaming industry and can be used by enterprises seeking to implement high performance mobile applications in such markets as: remote medical record access by physicians; securities research and trading; and, remote monitoring and the management of logistics and distribution. Phantom Fiber's Advanced Wireless Platform supports over 1000 mobile devices worldwide and includes a host of new features of benefit to gaming operators serving a global audience. For more information, please visit http://www.phantomfiber.com.

Phantom Fiber Corporation (OTC Bulletin Board:PHFB)

Contact Information