Mobile Internet, The: Pegasus Gaming set to enter booming mobile gaming industry

Pegasus Gaming Corp. announced that the company has completed negotiations to acquire the licensing rights to a mobile gaming platform, which can be seamlessly integrated into its I-gaming operating platform.

The platform will support play for cash as well as play for fun. With the recent approval in Nevada of the use of mobile gaming communication devices from public areas in Nevada Casinos, it would appear that Internet-accessed gaming can come out of the closet and be introduced into mainstream applications.

With the advent of a younger generation of players who are accustomed to using video applications for entertainment and with an increase in entertainment spending, this section of the gaming market would appear to be poised for a dramatic volume increase.

Industry analyst Juniper Research has forecast that the mobile gambling industry could reach US$16 billion in revenues by 2008, fueled by the more than 1.7 billion mobile-phone users, or more than 25 percent of the world population.

The majority of mobile cellular phones with Internet/WAP access, manufactured by Sony Ericsson, Motorola, Nokia, Samsung, and Sharp, amongst other manufacturers, will be able to access the mobile gaming platform.

The mobile gaming platform will be offered to licensees as an option to the core product and will therefore generate royalty income from the licensees' client base.

Mr. David Cheng, President & CEO, commented, "When the company business plan was prepared in 2004, this area of the market was not significant in overall business volume. The request we have received from interested license purchasers was such that we felt that this option would become a value added platform that would complement the existing core products.

The application has integrated very well into our existing technology and we see this area of the business expanding to reflect a potential to increase gross revenue by as much as 25 percent to licensees offering the platform. We intend to aggressively pursue sales of the Mobile Gaming Platform option to new licensees for 2006. We expect an official launch date for our Mobile Gaming Platform, to be early 4th quarter of 2005."