BINGO WITH ADDED COMMUNITY SPIRIT

Multi Balls part of new games package on Playtech’s Virtue Fusion Alderney network

Tuesday 20th July 2010 (London, UK) - Playtech’s Virtue Fusion Alderney has today launched Multi Balls, a new multiplayer game where players compete against each other for a share of a Community Jackpot.

The networked prize pool is accumulated from players on separate games. Matching combinations of balls then pay multiple amounts based on the total amount staked by an individual. The stake-per-game is £0.25 and each winning ball combination of five or more characters returns a respective cash prize in addition to a set of points which gives the player a position on the leaderboard. The higher up on the ladder a player is, the greater their share of the community jackpot.

George and the Dragon and Treasure Time Traveller
Also launched by Virtue Fusion Alderney is George and the Dragon, a five reel, twenty five line slot with exploding reels, stakes per spin of £0.01-£50.00 and a progressive jackpot which has been seeded at £5,000. It also contains a bonus feature where the player, as the character of George, fights the Dragon to save the Princess.

Treasure Time Traveller is a new nine square scratchcard with a historical theme. Stake amounts vary from £0.10-£10.00 and players reaching the bonus round get the chance to pick a bygone era and destination, then travel through time to collect their winnings.

      George and the Dragon Treasure Time Traveller

Virtue Fusion Alderney CEO Bob McCulloch said: "I am sure that bingo players across our network will love playing these new games. The community jackpot which is also part of our Blockbusters game is a feature that helps make online bingo even more sociable, so we expect it will be very popular."

For more information, please contact:

Bob McCulloch
C.E.O. Virtue Fusion (Alderney) Limited
tel: +44 (0) 1481 823581
Bob.mcculloch@virtuefusion.com

Notes to editors:

About Virtue Fusion Alderney

Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products and winner of 'Best Bingo software' as voted by the industry at this year's Bullet Bingo Summit 2010, was acquired by Playtech Ltd in February 2010.

The Virtue Fusion Alderney multi-lingual and multi-currency European network offers the largest bingo prizes to be found, with peak traffic of over 7,000 concurrent players driving over €100,000,000 in total stakes-per-month.

Developing bingo and networked gaming solutions for the online gambling industry, some of the world's best-known gaming operators, bookmakers, land-based operators and media companies use Virtue Fusion Alderney's bingo solutions, including Mecca, Ladbrokes, William Hill, Sky, Bet365, Crown Bingo, Virgin and Paddy Power.

www.virtuefusion.com

About Playtech

Playtech develops unified software platforms and content for the remote and land-based gaming industry. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The system's fully integrated, cross-platform capability enables players to access online, broadcast, mobile and server-based gaming terminals, through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in the newly regulated markets.

Founded in 1999, Playtech is headquartered in the Isle of Man and has over 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

Bob McCullock of Virtue Fusion Alderney believes an innocative approach can propel bingo even further as a market

Stable and predictable margins are an asset to any business and have proven to be a key factor in online bingo becoming an integral part of the gaming industry worth hundreds of millions of pounds. This reliability stems from a regular and faithful player base that is attracted mainly by a wide selection of games with low cost stakes and impressive rewards.

In its own right, bingo makes a significant contribution to the sector, but it is also a valuable tool when cross-selling as well as for building brand awareness and loyalty. People who play bingo are quite often new to egaming, so might not have previously engaged in casino, sportsbook or poker.

Operators soon saw the potential benefits of bingo, which is why almost all now provide it as part of a complete gaming package. It is also seen by many players as an entertainment product, hence a number of media companies have also begun to offer bingo.

With the growth of the game set at steady pace, choice is key to keeping players happy according to Bob McCulloch, CEO of the Playtech-owned Virtue Fusion Alderney (VFA). “Bingo needs to adapt to the requirements of these new players to attract them to the game in the first place, and then provide them with constantly innovative and stimulating material to hold on to them. This is naturally part of the continual process of re-invention which the game is good at, but developers like ourselves must stay ahead of the curve.”

"Our strategy is about creating an environment in which innovation can take place. It is vital that people have the opportunity to develop their ideas,” he adds. "We have to listen to all our staff. Take our chat moderators for instance; because they are our front line people, they receive information directly from players on a daily basis as to what they would like to see. It would be detrimental to ignore this valuable, not to mention free, advice.”

VFA prides itself on paying attention to all forms of feedback to help develop products and services further. "It is vital to maintain strong contact with our operators too – taking product development in isolation, it is easy to believe that a product will sell, but that is not always guaranteed to be the case. Our operators are relaying the thoughts and desires of the players they rely on, so we must take on board their response to our products.”

Focus on Markets

As the major gaming market, VFA is still very much focussed on the UK and McCulloch believes there remains a lot more potential growth in the market. "Playtech’s EdGE games platform will enable VFA to integrate the best games in the field and give us a significant advantage when it comes to what we can offer our current and future clients. What is more, Playtech’s back office system, the Information Management Solution (IMS), will bring highly sophisticated player management and cross-selling tools to existing clients, in turn, allowing us to provide better products and service to their players,” he says.

To expand further into additional territories it is necessary to look at new bingo products and clients in international markets. Playtech’s longstanding B2B expertise and regulated markets experience will provide VFA with a huge boost in this department. Developing markets being discussed across the board in the gaming industry are Italy, France, Spain and Scandinavia, and it is no different for VFA. McCulloch does, though, feel that his company will need to adapt and modify their products to suit each area, rather than taking a ‘one-size-fits-all’ type of mindset.

"Our philosophy of approach when it comes to these markets is to be innovative in our ideas but also in how we develop our games for them,” he says. "Players across Europe and in other potential new markets like South America have very different demographics and products need to be tailored accordingly. Taking this into consideration shows an understanding of different cultures and customs – something required in order to make inroads.”

Historically, the game has thrived on being a sociable pastime and it is this fact which renders the modern-day version perfect as a network proposition. Aside from the Playtech backing and proven success of the existing VFA product, it is the company’s network which, according to McCulloch, provides the biggest appeal to potential customers and stands them apart from their competitors.

"Thanks to an unrivalled liquidity, VFA has the biggest network in the business. That our clients include Ladbrokes, William Hill, Sky, Bet365, Boylesports, Paddy Power, Mecca, Crown Bingo, Virgin and Bauer Publishing demonstrates the importance of bingo to some of the leading names and the advantages in joining a bingo network."

The size of the jackpot is a crucial pulling factor in any game – the enjoyment of the game itself is no longer enough. The VFA network accommodates 30,000 players every day and drives total stakes of more than €100 million each month. "Our progressive jackpot game Clover Rollover has just passed the £1.7 million-mark and will reset at a starting point of over half a million when the prize is claimed. A level of financial exposure this great would be beyond all but the biggest operators, but within a substantial network it is totally manageable."

VFA has been one of the UK’s biggest online bingo success stories. Now, with Playtech behind them, they look set to take this onto the next stage.

Bob McCulloch, CEO, VFA


Bob McCulloch joined VFA as CEO in 2007 and has since helped double the size of the operations and establish the company as one of the leading bingo and networked games providers available to the market anywhere in the world. VFA was acquired by Playtech in February 2010.

Appeared in the June 2010 edition of EGR Magazine

Bingo is booming. An online makeover has seen the game reinvent itself from a pastime for middle-aged housewives to a form of entertainment for a younger, more professional audience. Virtue Fusion Alderney CEO Bob McCulloch speaks to JENNI SHUTTLEWORTH about how the sector has grown, not only in terms of audience appeal but also in revenue, and how we can expect it to continue to evolve in the future.



What is your background in the bingo sector?

Virtue Fusion Alderney (VFA) was founded as a small operation nearly a decade ago at the fledgling stage of online bingo’s development. In that time, the industry we have grown up with has changed beyond recognition and expanded many times over, to one that is now worth hundreds of millions of pounds. VFA has become the pre-eminent network in the business, thanks to the unrivalled liquidity we offer our clients which enable higher prizes and greater availability of games to the players.

Earlier this year, we became a Playtech company after they acquired the business. Now, as part of one of the leading companies in the online gaming industry, our capability has risen significantly, thanks to their very substantial market position, longstanding B2B expertise and international standing.

Existing VFA clients include Ladbrokes, William Hill, Bet365, Boylesports, Paddy Power, Mecca, Crown Bingo, Virgin, Sky and Bauer Publishing.

Why has the appeal of bingo increased to a wider audience, and why is bingo so huge in the UK?

In different guises, bingo has existed for centuries - a testament to its enduring popularity. The game as we know it today in the UK has been played for the past 50 or so years and in that time people have been drawn to it because of the low cost stakes, yet regular prizes and potentially vast jackpots. It has always been a very sociable game too, and combining these factors has led to a mass-market appeal.

There is certainly a broad overlap of players who would have taken part in traditional offline bingo and those who now play on the internet, but the move to online has provided the platform for a wide range of new user groups to enjoy bingo too. Proportionally, an increase is being observed in terms of the numbers of both white collar professionals and younger people as part of the bingo-playing population. They are brought in by the ease and convenience of playing when and where they want to, and the attractions of being part of an online community - as we can see with the likes of Facebook and similar sites. This is partly why the development of our market-leading social networking tool is such an important part of our offering.

Which other markets is bingo most popular in, and what markets have potential for the bingo sector?

Outside of the UK there are hotspots in mainland Europe such as Italy and Spain, and in Scandinavia. We already have a presence through the continent and Playtech’s influence and international experience will allow us to increase this significantly. Many new markets are in the process of regulation so, of course, we have our eye on developments in a number of different places. South America is one such area, but the legislative issues will need to be sorted out there first.

How is online affecting the land-based bingo market?

While as a society we have seen a shift towards all things online, there is still very much a demand for land-based bingo. Some VFA clients, like Mecca, have found that it is possible to successfully offer both products with one complementing and benefitting the other and the brand in general.

The online market has taken its cues from the offline product which has proven to be so well loved. While some internet players might have transferred over from the bingo halls and clubs, it is fair to say that there are many others who have started to play online that would not have played the land-based game. As a result the market itself has welcomed new players, and this is a dynamic experienced across all gaming products.

There are so many bingo sites available, what can operators do to attract new players and extend their lifecycle?

With the volume of sites out there, certain players are more mobile than perhaps they once were in choosing the destination of their bingo session. The strength of the VFA product means that our games stand-up for themselves and operators don’t have to be over-reliant on providing free games.

Clearly, being part of a network has benefits to an operator, allowing them to increase the value of their prizes for a shared and reduced risk. The VFA network accommodates 30,000 players every day and drives total stakes of more than €100 million each month. Our progressive jackpot game Clover Rollover has just passed the £1.7 million-mark and will reset at a starting point of over half a million when the prize is claimed - a level of financial exposure this great would be beyond all but the biggest operators, but within a substantial network is totally manageable.

Operators must offer diverse and innovative games to their players. Playtech’s EdGE games platform enables us to integrate the best games in the field. What is more, Playtech’s back office system the Information Management Solution (IMS) will bring highly sophisticated player management and cross-selling tools to our existing clients, in turn, allowing them to provide better products and service to their players.

Is there a lot more to come from the bingo market?

Absolutely. The UK market has not yet reached saturation, so there is a lot more to be seen in this country yet. Newly regulated markets have barely got going, and there are a number of others that could easily match or outstrip the UK in terms of size in the future when that process begins elsewhere. Playtech’s knowledge and understanding in regulated markets definitely gives VFA a significant advantage in entering these new territories that we didn’t previously have.

How do you see the bingo market changing?

One of the more recent trends that we, in particular, have been involved in has been the development of branded products. Acquiring licenses for such ventures requires a certain level of financial commitment but the Deal or No Deal, Big Brother and Goldenballs games we created were very well received and they are a big part of our plans. More recently we were approached by Meccabingo.com, official online gaming partner for Britain’s Got Talent, to provide a game based on the hit TV show and featuring signature elements from it. With the programme attracting peak audience figures close to 20 million people in the UK alone, the potential for bingo is exciting when tapping into such resources.

Tuesday 15th June 2010 (London, UK) - Playtech picked-up three awards at last night's EGaming Review ceremony, recognising its best of breed Poker and Bingo products.

Held at Old Billingsgate, London, the event saw Playtech win both Poker Network of the Year and Poker Software Supplier of the Year, for its leading iPoker network.

Playtech was the winner of the Bingo Supplier of the Year category through its Virtue Fusion Alderney bingo product which provides the most exciting bingo action in the industry.

The EGR B2B Awards follow on from those won at last week's Online Bingo Summit where Playtech's Virtue Fusion Alderney was awarded Best Online Bingo Software and Best Online Bingo Innovation.

Playtech CEO Mor Weizer said: 'The EGR Awards are a prestigious new event in the industry's calendar, so we are delighted Playtech have been recognised here with three separate awards. It really shows the strength of our products across the group. Being named Bingo Supplier of the Year is a fantastic endorsement and it is extremely satisfying as it comes straight after our double success at the Online Bingo Summit.'

About Playtech

Playtech develops unified software platforms and content for the remote and land-based gaming industry. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The system's fully integrated, cross-platform capability enables players to access online, broadcast, mobile and server-based gaming terminals, through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in the newly regulated markets.

Founded in 1999, Playtech is headquartered in the Isle of Man and has over 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

The Playtech-owned company also judged winner in Best Online Bingo Innovation category by industry panel

Wednesday 9th June 2010 (London, UK) - Playtech was a double winner at last night's Online Bingo Summit Awards through its Virtue Fusion Alderney platform.

Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products, picked up the Best Online Bingo Software award for the second consecutive year. Dragonfish, Gamesys, Cozy Games, Parlay Entertainment and NYX Interactive were also nominated for the prize.

The company also claimed the Best Online Bingo Innovation for its Deal or No Deal product and one of its customers, Tea&Bingo, was named Best Newcomer for 2010 at the ceremony at the Victoria Park Plaza, London, which is now in its fifth year.

Virtue Fusion Alderney CEO Bob McCulloch said: 'The Online Bingo Summit is very well regarded within the industry so it is fantastic for Virtue Fusion Alderney to have won the Best Online Bingo Software award for a second year in a row. We are very proud of our Deal or No Deal product so to see further success for that in the Best Online Bingo Innovation award was also very pleasing.'

For more information, please contact:
Bob McCulloch
C.E.O. Virtue Fusion (Alderney) Limited
tel: +44 (0) 1481 823581
Bob.mcculloch@virtuefusion.com

Notes to editors:

About Virtue Fusion Alderney

Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products and winner of 'Best Bingo software' as voted by the industry at this year's Bullet Bingo Summit 2010, was acquired by Playtech Ltd in February 2010.

The Virtue Fusion Alderney multi-lingual and multi-currency European network offers the largest bingo prizes to be found, with peak traffic of over 7,000 concurrent players driving over €100,000,000 in total stakes-per-month.

Developing bingo and networked gaming solutions for the online gambling industry, some of the world's best-known gaming operators, bookmakers, land-based operators and media companies use Virtue Fusion Alderney's bingo solutions, including Mecca, Ladbrokes, William Hill, Sky, Bet365, Crown Bingo, Virgin and Paddy Power.

www.virtuefusion.com

About Playtech

Playtech develops unified software platforms and content for the remote and land-based gaming industry. Leading gaming applications include casino, poker, bingo, sports betting, live gaming, casual and fixed odds games. Playtech provides licensees with the tools to maximise cross-selling opportunities, player loyalty and yield, all through the powerful management interface - the IMS. The system's fully integrated, cross-platform capability enables players to access online, broadcast, mobile and server-based gaming terminals, through a single account.

New licensees include existing online operators upgrading or diversifying their offering, land based casino groups, government sponsored entities such as lotteries, and new entrants making their online gaming debut, particularly in the newly regulated markets.

Founded in 1999, Playtech is headquartered in the Isle of Man and has over 1,000 employees located in development centres in five countries, the majority of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

We all know Playtech has been on the acquisition trail, but can you tell us how did the takeover come about - start to finish?

Simply put, the existing Playtech (PTEC) bingo product was not yet fully optimised and needed work to become competitive, while the size and liquidity of the Virtue Fusion Alderney (VFA) network is unrivalled. Like poker, a bingo network benefits from size of prizes, increased price points and variety of game - VFA has over 30,000 daily users driving more than €100 million in total stakes-per-month.

This made us an attractive proposition to them, hence the approach, and PTEC's greater international reach and regulatory expertise will hugely benefit our operation.

The integration has gone well and we are now in a strong position to incorporate the strong Playtech management tool, IMS, begin cross-selling PTEC and Gaming Technology Solutions (GTS) games to VFA customers and vice versa.

How receptive was Virtue Fusion to the approach - was a takeover on the cards anyway?

PTEC and VFA, prior to this round of negotiations had conducted a number of discussions over the past two years. In the intervening time our customer base and revenues had grown to such a point that it appealed to PTEC and the stage was set for a deal to go through.

VFA did not orchestrate a sale process. We were approached by a number of companies, many of which were not appropriate suitors due to their involvement in bingo operations. VFA has good customer relations which would have been damaged if we had been bought by a company which was competitive with some of our clients. Our perfect partner was therefore a pure B2B company and PTEC fitted the bill perfectly.

Inevitably you've been used to doing things your way. How will the deal affect the company's autonomy?

PTEC and VFA have invested a great deal of time in understanding one another's products to work more efficiently together. We are also working to integrate our respective products so that the full set of deal advantages are leveraged as quickly as possible. This means we are working closely with PTEC on many fronts to build the business and create a unique opportunity for bingo operators.

Otherwise VFA has been provided with PTEC group objectives, although we set our own objectives too in order to contribute as much as possible to the high level group goals. This way much of the autonomy we had is retained. We have therefore kept our flexibility and ability to be proactive in a dynamic environment with a large company resource behind us.

M&A history is littered with failures. What are the factors you feel will ensure this deal doesn't become one of them?

First, the key to making the deal successful in the long run is our customers. It is our job to demonstrate the customer advantages that can be derived from our joining up with PTEC. More games on offer; more and better tools for our customers; greater international reach; improved processes put in place. Second is maintaining the great working relationships between PTEC and VFA which have been quickly established. Third is in integrating the products in the most effective way open to us. All three processes are already well underway. In the last few months we have set new records in terms of performance of our licensees and the reaction and feedbacks are great.

Inevitably, when a 200 person company is taken over by a 1,000 person organisation there's bound to be a bit of a culture clash. What are the main differences between the companies?

The respective sizes of the companies has given rise to differences but, in getting to know PTEC, we have been more surprised by the similarities in the way the two groups approach all aspects of the business. For instance, we have each adopted an objective-led management style, clear reporting lines and teams defined similarly.

Differences owe perhaps more to the locations in which we are based. PTEC is an Estonian-based technology business, run and managed by very bright group of people globally. VFA is British through and through.

How have you handled the integration process - what advice could you give for others in the sector likely to go through it?

Integration is on-going. Whilst we all want integration to occur at breakneck speed, it makes sense to take a bit of time and make sure that we get it right. Playtech has a track record of integrating companies it acquired successfully its past experience and knowledge is used in our case to ensure it is done in the most effective way for all parties involved creating one big group with common objectives.

Existing work needs to be processed in the first instance. It is necessary to ensure projects which are promised to customers are still delivered on time and specification. Then each party needs to have a full appreciation of each other's products so that integration is optimised. Such an understanding does not happen overnight but, with training and experience, over weeks and months.

Tell us how the Virtue Fusion strategy has evolved or is likely to evolve?

We are looking to provide bingo to global operators in multiple regulated jurisdictions. This will involve a heightened awareness of international regulatory issues as well as cultural and local gaming preferences as each country has its own flavour of bingo. Our business will need to evolve to meet the needs of international gaming operators in the increasingly complex but expanding market for online bingo. The guidance, knowledge and understanding that PTEC can impart will help achieve this and we share the same strategy which is a great advantage in achieving that.

What's your view of consolidation plays generally?

In my view consolidation will have a big say in the way the online gaming market evolves. Operators derive efficiencies through greater size and the capability to cross sell gaming platforms to their customers. Some of the much talked about plays, as and when they come about, will make it harder for small operators to compete. In the B2B space, the main players are looking at land-based gaming as well as delivering into new regulated markets in the online space. Providing an integrated approach to multiplatform gaming software is possible only with size and reach. Consolidation is on the way.

How important a role do side games play a) for acquiring and retaining consumers (looking at the specifics of the average bingo player and their wants/demands); and b) in terms of revenue - how much of an affect do they have on a company's bottom line?

a) Fun, quickly resolved and cheap - if not free - to play, side games are now a staple part of online bingo; a form of entertainment that players have come to demand and expect. They are a very significant tool for acquiring and retaining consumers, particularly those in search of a more rounded gaming experience.

There is no doubt that progressive jackpot slots, for instance, with big prizes help in the acquisition process. Clover Rollover, with a current jackpot which has passed beyond £1.7 million and that will reset at over £500,000 is one such example on the Virtue Fusion Alderney network. Moreover, the fact players can launch these games in full screen from other parts of the site means they can assist operators in pushing their bingo traffic.

In terms of keeping hold of players, quality and variety is key. Bingo players want entertainment as well as choice, so providing a wide range of embedded games improves individual spend per session and contributes significantly to an increased lifetime value of a player.

Given that the bingo space is now full of bookmakers and other operators who offer a wide and diverse gaming experience including sportsbooks, casino, poker and skill gaming, it is important for the bingo software platform to include mini games that will cater for every player type.

b) It is proven that a full suite of mini-games running alongside a bingo product will increase average revenue per user significantly. This is certainly something that we have seen at VFA with operators that have switched from other software suppliers to our own platform.

With an average of 95 percent, side games generally have a higher return to player than bingo. If an individual is more likely to enjoy a winning experience from these types of games, then it follows that there is a better chance of them leaving their bingo session satisfied.

Up to 50 percent of an operator's bingo revenues will come from their side games so, without doubt, they are a hugely important factor on their bottom line.

Huge networks like VFA's, which has over 30,000 daily players and will payout over £1 billion on slots and bingo combined this year, ensure excellent liquidity for operators and fantastic prizes for their users. Rewards are directly proportional to the size of a network and, as these two factors increase, costs and payout liabilities to the operators are decreased as the risk is shared more thinly.

VFA's takeover by Playtech gives us access to the Enhanced Gaming Engine (EdGE) platform provided by Gaming Technology Solutions (GTS). This will mean that our clients will soon be able to choose from hundreds of additional games alongside our innovative in-house offering and run them on the vast VFA network.

Virtue Fusion Alderney has rarely been far from the news over the past 12 months, and the company really hit the headlines in February 2010 thanks to their acquisition by gaming giants Playtech for an initial £29m.

Following the takeover Bob McCulloch, CEO of the best-of-breed online bingo provider, considers if 'size matters' and whether 'the big keep on getting bigger'.



From small beginnings, Virtue Fusion Alderney (VFA) has gone on to become the world's leading licensor of internet bingo products, so, for us, the question of whether 'size matters' is a pertinent one.


Founded in 2001, the company began life with a team of five, led by Al Haig-Thomas, developing gaming software. Nearly a decade on and the operation had expanded to a workforce of 285 staff located in offices in London and the Channel Islands by the time VFA was acquired by Playtech earlier this year.

With a UK market now worth in excess of half a billion pounds, the integration of our company within their stable means that we are joining one of the biggest players in this massive industry. Playtech is a B2B provider that over the past 12 months has grown substantially, thanks in no small part, to a series of joint ventures, deals and acquisitions that have included William Hill Online, Netplay TV, Gaming Technology Solutions (GTS) and partnerships with Scientific Games and Sportech, not to mention ourselves.

In a bingo context, VFA's development has also been quick, but as with Playtech it should not be overlooked that it has been well calculated. Most companies would readily admit to aspiring to become bigger entities, but there have been key factors under consideration for us in order to allow this to happen.

Does 'size matter' in our industry? Of course it does. Through growth we have been able to develop the market-leading bingo solution, but we have been keen to ensure expansion is not achieved at the expense of everything else, and in particular the core service offering. However rapidly expansion occurs, it must be attained in a controlled manner.

Key to our progress has been the enduring relationships that were first built in the early days and remain central to us. Without the likes of Mecca Bingo, who showed faith in our products from the outset, we would not be where we are today.

It is vital that we have not lost that personal contact with our customers and operators. To do this we have had to be good listeners and also not to be so diverted that our customers no longer discuss matters with us, or else we would begin to lose direction and market influence. We are acutely conscious that while volume can be acquired, respect has to be constantly earned.

The principle differences between big and small companies in the sector are driven by economies of scale. Taking product development as an example, our in-house team of over 50 is substantial in dedicated bingo terms, and has enabled us to continually innovate and develop bingo-based products for our network operators. Players are often attracted by new game variations - both bingo and side games - and only a substantial developer can invest in the infrastructure to maintain a substantial pipeline. Furthermore, the continued regulation of new markets will put more demand on the technical resources of many software providers as they are obligated to comply with new legislation, combined with increased hardware and financial requirements. Playtech's resource and international reach puts VFA in the ideal place to take bingo to the next level.

VFA now has access to Playtech's expertise from their team of more than 600 developers. It moves our scale up considerably, providing a platform for us to compete globally. The benefits are obvious: firstly it means that we have greater ability to deal with a broader range of clients, while constantly creating new products and ideas and, in turn, keeping ahead of the curve in terms of demands. It is a virtuous circle and increasingly a barrier to entry as operators see the great advantages of being on a substantial and experienced network.

For VFA, the main indicator of size we focus on is the extent of our network. The multi-lingual and multi-currency European gaming network offers some of the largest bingo prizes to be found anywhere, with peak traffic of over 30,000 daily and 7,000 concurrent players driving over €100 million in total stakes-per-month.

Why does size really matter? The answer is two-fold: firstly, it enables operators to offer players the same large prize pools across bingo and progressive jackpot slots regardless of currency, territory, language or brand and ultimately a lot more choice - and irrespective of their own size or how core bingo is to their overall product offering.

Secondly, operators are free to utilise the liquidity as much or a little as they choose. They can, therefore, build their own stand-alone operation but with the added benefit of tapping in to the network liquidity as they see fit. This helps drive the player liquidity in their stand-alone games, and so the process self-perpetuates.

A network could be defined as a number of interdependent components that work together to accomplish a common aim. To bring these components together in online bingo requires two major factors to be in place. First is commonality of software capable of being networked and second, co-operation between operators.

Software development complexities aside, the protocol between site operators has to be handled with the utmost professionalism, ensuring that each operator's interests are respected. Our licensees value our flexible network model because it allows them their own identity whilst benefiting from the largest prize pools available online today.

This year VFA operators alone will payout in excess of £1 billion to bingo and slot players, excluding any networked jackpot contributions. To achieve success in the field of networked bingo it is vital that players have access to a large network - the jackpot amount is directly proportional to the size of the network. This means rewards, monthly prizes and progressive jackpots for a fraction of the payout liability and without the need to host anywhere near as many players. Again, this highlights the importance of scale and the self-fulfilling advantages provided by a bigger company.

As the network continues to grow, a decrease in risk to operators is also tied to the increase in rewards for their customers. For instance, our progressive jackpot game Clover Rollover has just passed the £1.7 million-mark and will reset at a starting point of over half a million when the prize is claimed. This financial exposure is something only the largest of single operators might be comfortable having, but is readily achievable across a large network.

Our network and liquidity made us an attractive proposition for Playtech; the capacity of both assets helping them to get even bigger. Combining these factors with Playtech's experience in regulated markets will only enhance this trend. Their games platform, GTS, will enable us to be even more forward-thinking when it comes to development and integration of side games. Additionally, Playtech's Information Management System (IMS) will bring further player management and cross-selling tools to our existing clients such as Ladbrokes, William Hill, Sky, Bet365, Boylesports, Paddy Power, Mecca, Crown Bingo, Virgin, Sky and Bauer Publishing.

Many of the bigger players in online bingo will continue to get bigger and, as a Playtech company, I can only see VFA being one of them - especially as we strive to remain true to the values and the people that helped us get here in the first place.

It has been a busy few months for Virtue Fusion Alderney following the company's acquisition for an initial £29m by Playtech. JENNI SHUTTLEWORTH catches up with CEO Bob McCulloch to discuss the key benefits of the deal for the successful online bingo developer.



Bob McCulloch last spoke to iNTERGAMINGi just before January's International Gaming Expo (IGE). Happy to discuss what the future held for Virtue Fusion Alderney at the time, this was before their takeover by industry giants Playtech. What, then, has changed in the meantime and what can we expect to see over the next year?

"Firstly, Playtech are one of the biggest online gaming companies in the world, so it's fairly obvious that this deal is going to hugely boost the operational power of Virtue Fusion Alderney," begins a buoyant McCulloch. "One of the most immediate gains is the ability to cross-sell one another's products to our respective clients."

With Virtue Fusion Alderney considered the world's leading licensor of internet bingo products; renowned for their network management and vast liquidity, they are going to be an important addition to Playtech's stable. The latter recently strengthened their hand with the acquisition of Gaming Technology Solutions (GTS) in December last year, a purchase that helped consolidate Playtech's games offering, and the addition of Virtue Fusion Alderney will inject vital liquidity to their bingo product.

"Playtech are already front-runners in casino and poker, and now own the world's largest bingo network. They are the number one software provider to the online, mobile, TV and land-based gaming sector, and can now bring unrivalled European prize pool liquidity and the market-leading bingo solution to the table too," McCulloch elaborates.

The takeover also gives Playtech more than 20 licensees, including Paddy Power, Ladbrokes, William Hill, Bet365, Mecca Bingo, Minxy Bingo, Crown Bingo, Carlton, Virgin, BSkyB and Bauer. While many are existing clients or well-known to Playtech, the enhanced bingo offering on the platform gives a full product suite, maximising cross-selling opportunities and giving operators the chance to improve overall yields. The most recent example of this being the bingo licensing agreement established with Ireland's largest independent bookmaker, Boylesports - already a Playtech poker customer.

A step-up is also anticipated in terms of software development, thanks to Playtech's GTS platform, and access to which McCulloch feels will give the ability to "produce a vast array of new, innovative and exciting games." He is also enthusiastic about providing an attractive one-stop-shop for operators and their players along with the many advantages that Playtech ownership will bring to the brand.

With the ink barely dry on the contract, it seems that there is no time to lose in pressing home the advantages. McCulloch is clear on priorities for the year ahead: "The immediate focus is the integration of the companies. Combining our best-of-breed offering, network management and liquidity with a company of Playtech's size and experience will produce a formidable bingo product. The GTS software will create further benefits, and Playtech's Information Management System (IMS) is recognised as being number one in the industry."

Last time iNTERGAMINGi spoke to McCulloch, his mind was on international expansion, and this is definitely an area for which Playtech's expertise will be called upon to help realise these ambitions. "Playtech's global standing gives us immediate access to markets that previously would have taken some considerable amounts of time and effort to break into. Doors will now open in emerging and soon-to-be-regulated markets far quicker than they would have otherwise. B2G marketing is another area we'll definitely see a difference - we are now viewed as an organisation with the ability to shape markets.

"Away from the back-end assimilation that we will see, the desire to shape the industry with our innovative products still remains. This will continue to happen and we will be concentrating on entry into areas of mainland Europe. Playtech's major presence in Italy will provide a crucial foundation and springboard and Spain is very much on our agenda. We will also ensure that we are ready and in place for those markets that are due to be regulated."

What is certain is that it will be an exciting year for the company - as anyone who bumped into McCulloch, or his Virtue Fusion Alderney colleagues Al Haig-Thomas, Rob Keown-Boyd and Rob Wheeler at IGE could testify. "As one of the few industries to have expanded during the recession, I do worry whether the gaming calendar is becoming too exhibition focused, but there are a number of must-do dates in the diary and IGE is obviously one of the main ones for all of us."

He feels that the industry needs to be careful not to unbalance the benefits gained from having these shows by spreading them too thinly and gives us a glimpse at his itinerary for 2010. "Along with many others we see the Scandinavian market as being an important one, but also a very competitive one. To maintain and increase our market penetration it is essential that we are represented at one of the region's principal events, iGaming Forum.

"The only exhibition to specifically represent the online bingo industry is the Online Bingo Summit at which, of course, last year we received the honour of being voted Best Bingo Software 2009. Due to its specialisation it will obviously attract those interested in this market. However, it is vital that we do not become inward looking and exhibit in other arenas.

"EIG in Copenhagen has taken on a new identity since its move from Barcelona and is another very important conference for us."

Just do not expect too many more revelations from the Yorkshireman on Virtue Fusion Alderney's imminent plans in the near future.

After a particularly impressive past 12 months which have seen the company make 13 client sign-ups, launch 21 new games, enter a partnership with Endemol and launch a world-first in integrated social networking for bingo - not to mention signing the Playtech deal - what can he tell us about any other interesting projects the company are working on at the moment? "Now that would be telling - all will be revealed in due course."

PLAYTECH ANNOUNCES BINGO LICENSING AGREEMENT WITH BOYLESPORTS

Playtech-owned Virtue Fusion Alderney becomes online bingo supplier to Irish bookmaker

Wednesday 17th March 2010 (London, UK) - Playtech Ltd, the leading software provider to the online, mobile, TV and land-based gaming sector, is pleased to announce that it has established a bingo licensing agreement with Boylesports.

Playtech will provide Boylesports, Ireland's largest independent bookmaker, with its online bingo solution through the Virtue Fusion Alderney platform, the world's leading developer and licensor of internet bingo products,

Boylesports will receive unrivalled European prize pool liquidity from Playtech Ltd. The bingo product joins Boylesports' egaming offering that already includes Playtech poker.

Boylesports Head of Online, Conor Grant, commented: 'As the industry leading provider of online gaming software, Playtech have a proven track record for supplying fantastic products with great liquidity. We are delighted to be introducing their online bingo through Virtue Fusion to Boylesports.com.'

Mor Weizer, Playtech CEO, said: 'We are delighted to become online bingo supplier to Boylesports. They already benefit from having Playtech for their poker product, so taking another best of breed service by utilising the Virtue Fusion Alderney platform will compliment their portfolio and bring enhanced opportunities.'


-ENDS-

For further information contact

Playtech Ltd+44 (0) 1624 645 999
Mor Weizer, CEO of Playtech Ltd

Ollie Drew, Square in the Air+44 (0) 7239 8242
PR adviser to Virtue Fusion

Notes to editors:

About Virtue Fusion Alderney

Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products and winner of 'Best Bingo software' as voted by the industry at this year's Bullet Bingo Summit 2009, was acquired by Playtech Ltd in February 2010.

The Virtue Fusion Alderney multi-lingual and multi-currency European network offers the largest bingo prizes to be found, with peak traffic of over 7,000 concurrent players driving over €100,000,000 in total stakes-per-month.

Developing bingo and networked gaming solutions for the online gambling industry, some of the world's best-known gaming operators, bookmakers, land-based operators and media companies use Virtue Fusion Alderney's bingo solutions, including Mecca, Ladbrokes, William Hill, Sky, Bet365, Crown Bingo, Virgin and Paddy Power.

Virtue Fusion operates out of Alderney and is currently applying for a Maltese Licence.

www.virtuefusion.com

About Playtech

Playtech develops unified software platforms for the online and land-based gambling industry providing bingo, sports betting, networked games, online casino, poker, bingo, mobile gaming, live gaming, land-based kiosk networks and fixed-odds games. Playtech gaming applications are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface.

www.playtech.com

Ollie Drew
Square in the Air Communications
squareintheair.com
tel: +44 0207239 8242
mob: +44 0795715 6601
The Office Islington, 338 City Road, London, EC1V 2PY

Bob McCulloch joined Virtue Fusion Alderney as CEO in 2007 and has helped double the size of operations, establishing the company among the world's leading bingo and networked games providers. In February 2010, Playtech, the leading B2B provider to the online gaming sector, acquired the Virtue Fusion business.



How, in your opinion, is online bingo generally perceived? Has this changed over recent years?

I don't believe there's a particular perception of online bingo. Certainly land-based bingo has been overly stereotyped by age, class and gender, but it's untrue to make similar assumptions about online.

Thanks to technological advances and the convenience of being able to engage at any particular moment, the playerbase is a broad one. The huge growth experienced indicates how much the appeal has widened.

How would you describe the typical online bingo player? Do you think the demographic is broader today than it was in the past?

The majority are new to bingo, although less often to online gaming, however they are younger than their land-based club contemporaries.

Research shows skilled and white collar professionals contribute over 38 percent of the UK's bingo-playing population, while 60 percent are under 45-years-old and 20 percent between 18 and 24. Young, affluent professionals find online bingo to be a convenient and entertaining hobby.

Undoubtedly, most customers are female - estimations suggest women outweigh men 3:1 - who enjoy the community side of the game, just as land-based players do.

The demographic is certainly wider than ever, and there's no reason to suggest this trend won't develop further as the game continually adapts to technological advances, bringing it within reach of more people.

Entry into new territories and the assimilation of new cultures, combined with the political environments and regulatory demands in these countries, will also have a large part to play in the development of the game and the people to whom it becomes accessible. Our new colleagues at Playtech have a decade of international experience and will allow us to quickly and effectively adapt our offering to suit the needs of these emerging markets.

To what extent has the growth of social networking impacted upon the continued development of online bingo?

It is impossible to ignore the fact online bingo players are massive fans of social networking- as are most people who use the internet recreationally. It is, therefore, essential to welcome social networking, the characteristics of which fit perfectly with the game.

It's no longer enough to target the likes of Facebook and Bebo as marketing communication channels for online bingo sites, which is why we launched the first-ever bingo games with embedded social networking. However, just as any social networking site worth its salt must keep their product fresh and interesting, so do we in online bingo.

With the newly introduced networking and profile-building elements, players of all our games can chat and stay in touch with friends before, during and after sessions. These fun and easy-to-use features appeal to all ages.

Geographically speaking, in which markets is online bingo experiencing the most growth?

At present the UK continues to show greatest market growth. While land-based bingo is popular in Spain, online has been slow to take-off due, in no small part, to literal translations, regional and cultural differences and earlier problems relating to security of payments.

However, with Italy opening its barriers, we can look there for considerable growth over the coming years. We and Playtech will be amongst the first to open a bingo network for the Italian market.

So much depends on regulation and the nature of restrictions imposed that it's difficult to predict where the next phase of geographical growth will be. To be successful it's essential you are active in the B2G market, and the recent acquisition by Playtech enables us to increase activity in this sector, thus providing well-founded opportunities for our operators.

What do you think can be done to attract new players into the online bingo space going forward?

It's always difficult to assess if, and when, the market is nearing maturity as at this point it tends to segment with new breeds of operators emerging from other market sectors such as media, retail and travel as opposed to the traditional sources of gaming.

Their emergence will enliven and increase the reach of online bingo into, as yet, untapped markets. Large supermarket chains have the biggest growth potential. If they market correctly and ensure bingo is supplied cheaply and connects rewards to a players' shopping, then they could become some of the biggest online bingo sites.

New entrants have been a feature across online gaming and reflect the increasing leisure/entertainment perception of the sector. A major B2B provider like Playtech can offer new operators a full suite of products including bingo, casual games, casino and poker. This greatly increases potential for cross selling and attracting new players who might not have considered bingo before.

Players can also be introduced and converted through branded content. An extremely successful example is Virtue Fusion Alderney's launch of Deal or No Deal which allows players to combine one of their favourite TV programmes with online bingo.

15 February 2010

Playtech Limited

('Playtech' or the 'Company')

Acquisition of business and assets of Virtue Fusion Limited ("Virtue Fusion")

Playtech Ltd, the leading software provider to the online, mobile, TV and land based gaming sector, today announces it has acquired the business and assets of Virtue Fusion, the leading developer and licensor of online bingo products.

In summary:

Initial consideration of £29 million (€33.4 million), subject to agreed working capital adjustments, funded from Playtech's existing cash    resources

Additional earnout payment of up to £7 million (€8.1 million) payable in the first quarter of 2011 based on adjusted EBIT performance in    2010

Transforms Playtech into the market leader in bingo, complementing its leading position in poker and casino, and as content provider

Substantially enhances player liquidity with additional cross-selling opportunities

Adds a suite of leading brands to Playtech's growing stable of licensees

Transaction anticipated to be earnings accretive in 2010

In the 12 months to 31 December 2009, the financial performance attributable to the assets being acquired comprised turnover of £12.3 million (2008: £8.1 million) and adjusted EBITDA of £3.8 million (2008: £2.3 million). These figures are based on the unaudited consolidated accounts of Virtue Fusion's group, and reflect the fact that bingo has been one of the fastest growing segments in online gaming in 2009.

Virtue Fusion

Virtue Fusion was founded in 1999 and has developed into one of the most liquid bingo networks with peak traffic of more than 6,000 concurrent players. As well as its core UK market, Virtue Fusion has a growing international presence in other European countries. It has more than 20 licensees including well known brands such as Mecca, William Hill, Ladbrokes, Virgin, Sky, Bet365, Paddy Power and Crown Bingo.

Virtue Fusion offers both an integrated and a turnkey solution to its licensees. Operators can join the network or choose to have an end-to-end bingo solution. All of the bingo products are multicurrency and multi-language. The founders and key personnel of Virtue Fusion have contracted to remain with the business for a minimum of two years.

Combined Benefits

For Playtech, the acquisition significantly enhances its own bingo offering, brings new licensees and enhances its relationships with a number of existing licensees. It also positions Playtech as the leading supplier in all of the key product segments in the online gaming industry, with very substantial liquidity in each of its player networks.

As with poker, network player liquidity is an important element for bingo operators. By linking the operator's bingo rooms across the network, Virtue Fusion can facilitate more frequent games being offered and higher prize values and jackpots for the same individual stake. Both Playtech and Virtue Fusion's existing licensees will therefore enjoy the benefits of increased liquidity when their networks are combined.

Bingo is a community-based game and bingo sites typically enjoy a loyal customer base with high player retention rates. Additional revenue is generated through side games including networked games such as slots and scratch cards played concurrently with the bingo games. Once integrated, the new bingo licensees will have access to an extensive number of slots and other games in Playtech's library.

Licensees will also benefit from the opportunity to integrate with Playtech's highly sophisticated IMS information management system. This provides real-time player management, enhanced cross-selling and VIP management tools which can greatly enhance an operator's opportunity for revenue growth.

Commenting on the acquisition, Mor Weizer, CEO of Playtech said:

"The acquisition places Playtech in the leading position in international online bingo markets, complementing our leading position in poker and casino and, following the GTS acquisition, as a content provider. It reflects our ongoing commitment to provide licensees with a comprehensive portfolio of best of breed gaming products.

This is another significant enhancement of Playtech's product suite, bringing further liquidity and experience to our existing bingo offering and further strengthens our position as the pre-eminent software provider to the online gaming industry.

Virtue Fusion is recognised as the market leader in online bingo, has an expanding international presence and a very strong reputation for high quality and expert management of their bingo network which has attracted a number of top-quality licensees. This acquisition extends the Playtech licensee portfolio and further strengthens the relationships with various existing Playtech licensees.

In a number of newly regulated markets, bingo is an embedded part of the social and gaming culture and a product which finds early favour with regulators. Consequently we see this acquisition as not only furthering what is already Playtech's competitive advantage in the growing online gaming market as a whole, but as having the potential to generate meaningful opportunities in newly regulated markets.

We believe that the acquisition of Virtue Fusion creates value for Playtech shareholders and the board anticipates the transaction will be earnings accretive in 2010 and beyond."

Bob McCulloch CEO of Virtue Fusion (Alderney) Ltd commented: "We are delighted to be a part of Playtech. This deal will ensure our operators continue to benefit from the market leading VFA Bingo product and in addition can now profit from Playtech's greater international reach and access to a wider games portfolio."

Euro-denominated figures are calculated on the basis of €1.15: £1 as at midday on Friday 11 February, 2010.

For further information contact

Playtech Ltd+44 (0) 20 7861 3232
Mor Weizer, Chief Executive
Shuki Barak, Chief Financial Officer
Ross Hawley, Head of Investor Relations
c/o Pelham Bell Pottinger

Collins Stewart+44 (0) 20 7523 8350
Piers Coombs / Bruce Garrow

Deutsche Bank+44 (0) 20 7545 8000
Mumtaz Naseem

Pelham Bell Pottinger+44 (0) 20 7861 3232
David Rydell / Olly Scott / Samantha Boston

About Playtech

Playtech develops unified software platforms for the online and land based gambling industry, primarily targeting existing online operators wanting to upgrade their system; sportsbooks looking to diversify and land-based operators making their online debut. Playtech gaming applications - online casino, poker, bingo, mobile gaming, live gaming, land-based kiosk networks and fixedodds games - are fully inter-compatible and can be freely incorporated as stand-alone applications, accessed and funded by players through the same user account and managed by the operator by means of a single powerful management interface. Founded in 1999, Playtech has more than 800 personnel distributed globally, around seventy five percent of whom are engaged in research and development of current and future gaming technologies.

www.playtech.com

About Virtue Fusion

Virtue Fusion develops Bingo and networked gaming solutions for the online gambling industry, primarily targeting existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion continues to be the world's leading developer and licensor of Internet bingo products in the UK. The Virtue Fusion gaming network offers some of the largest bingo prizes to be found with peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games such as slots and scratch cards. Some of the world's bestknown brands use Virtue Fusion Bingo solutions, including Ladbrokes, William Hill, Sky, Bet365 and Crown Bingo. Virtue Fusion continues to focus on the UK as its core market whilst launching products into Scandinavia and Europe during 2007. Virtue Fusion operates out of Alderney and is currently applying for a Maltese Licence.

www.virtuefusion.com

Tuesday 26th January 2010 (London, UK) - Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products, announces that it has renewed its agreement with William Hill, one of the best-known names in the gambling industry.

The deal will see the continuation of this now well established relationship, with Virtue Fusion Alderney providing William Hill Bingo with its managed bingo service and product, which includes such hugely popular games as Deal or No Deal, Marine Mayhem and Clover Rollover.

Virtue Fusion Alderney CEO Bob McCulloch comments: "This is a very competitive market and, of course, we are delighted to have renewed our agreement with William Hill to continue to provide them with their online bingo solution. To have such a name as William Hill in the Virtue Fusion Alderney stable is a great endorsement for the Virtue Fusion Alderney brand and product and we look forward to carrying on working with the team at William Hill."

William Hill Egaming Director Colin Cole-Johnson adds: "We've built a good relationship and Virtue Fusion Alderney continue to provide a bingo product that our players enjoy, so we're very happy to be extending our agreement."

About Virtue Fusion Alderney Ltd (VFA)
VFA is the world's leading developer and licensor of internet bingo products, providing bingo and networked games to some of the world's best-known gaming brands. Winner of 'Best Bingo Software' as voted by the industry at Bullet Bingo Summit 2009, VFA counts Mecca/Blue Square, Ladbrokes, William Hill, Gala, Sky, Bet365, Paddy Power, Virgin and Crown amongst its customer base.

It has the largest independent online bingo network, boasting 30,000 players daily, driving over €100,000,000 in total stakes per month.

VFA with its multi-currency and multi-lingual products is now actively marketing into Europe and worldwide. VFA Ltd is operated and regulated from Alderney.

Bob McCulloch, CEO of Virtue Fusion Alderney, looks at the importance of online bingo to bookmakers                        



The digital revolution has changed many aspects of the betting industry in a very short space of time. The sector has become more competitive with the consumer benefitting from innovation and choice that would have been unimaginable a decade ago.

Bookmakers have quickly expanded the quality and breadth of their offering accordingly - with their websites quite a different place to their shops. While their presence on the high street will remain, just as there will continue to be bingo halls, they can now offer a complete package to their customers who want a comprehensive round-the-clock service.

Bingo has existed for hundreds of years, but the advent of the smoking ban meant many felt that it would struggle to survive. Those fears have proved unfounded; the game remains popular offline and has thrived on the internet - attracting new players, yet appealing to its existing crowd. Many of these new players can be found on bookmakers' websites; no surprise when you consider that the online bingo market is worth hundreds of millions of pounds in the UK alone.

Among our clients at Virtue Fusion Alderney are some of the biggest in the trade: Paddy Power, bet365, Ladbrokes and William Hill. The bulk of their business is now conducted online and they need to keep up with this new computer literate generation. Online gamers and gamblers are more demanding - they want to play a wider range of games and they want to be able to do it 24 hours a day, seven days a week. They also tend to be less loyal, and have a lower attention span, so it is essential to keep pace by offering new products.

This is where bingo comes in. Alongside a sportsbook it is a neat fit with the suite that most bookmakers now provide of games, casino and poker. Having all these games and challenges in one place, it is straightforward to cross-market to the consumer and with cheap stakes and potentially huge jackpots, bingo has obvious attractions.

As people have become more familiar with the bingo games out there, developers like ourselves have had to enlarge our portfolio and concentrate on extending additional products like side games. Other trends include the development of branded content, which we achieved through licensing from Endemol to create features based on Celebrity Big Brother, Deal or No Deal and Golden Balls.

The latest step has been the conception of a social networking programme which we are now incorporating into our games. Social networks are a fantastic tool for attracting customers and increasing the time they spend on any given site, but have typically, until now, failed to generate additional revenue streams.

The other key attraction to bookmakers is that, when using Virtue Fusion Alderney's network, they are gaining access to a ready-made community of 30,000 daily players who drive monthly stakes of more than €100,000,000. Our flexible model allows them to create their own bespoke systems to include as many of our games as they like, and as much of our prize pool liquidity. When allied to their considerable marketing budgets, this creates quite a partnership.

The rise of bingo looks set to continue and I'm certain we will see more bookmakers getting in on the act, not just in this country, but also abroad as new territories open up. The game also lends itself to mobile platforms, meaning that it is compatible with the next phase of technology-led developments that the betting industry will surely enter once reception, connectivity and technology allows for the widespread uptake of mobile betting.

by Virtue Fusion Alderney Ltd CEO, Bob McCulloch

Introduction

Bingo has had to regularly update and reinvent itself in order to keep in touch with customer demand and increasingly computer literate consumers; many of these changes have been linked to improvements in technology, but never more so than since the game's online conception.

Keeping ahead of and creating new trends has enabled us to stay at the forefront of the online bingo industry. Since launching in 2001 with a team of five software developers, Virtue Fusion Alderney now employs 285 in Alderney and London, but our strategy for expansion has been carefully considered, most importantly ensuring that we do not neglect our existing operators and their players.

Organic growth through continued product development and providing innovative and entertaining games is a priority whilst the provision of a wide portfolio has been key to fulfilling our principle objective of retaining business that we have been successful in acquiring and, in doing so, maintaining our competitive edge.

Innovate or Get Left Behind

Marketing and advertising may draw customers in, but their ever-increasing knowledge and sophistication means that choice is the catalyst to retention. Fuelled by industry competition, their expectation is inversely proportional to attention - as the former increases, the latter decreases.

The casino gaming sector was established online before bingo and it is clear that a pattern seen there is being recreated with regards to product offering. At first, software suppliers concentrated on the core well-established games like roulette, blackjack, craps and baccarat. Now this is not enough for players - they want more choice and a regular influx of new gaming content to keep them entertained.

It is vital that we gauge shifts in popular interest and culture. We have identified that players' lifestyle choices can greatly influence where they play bingo. For instance, they want to experience the thrill and excitement of a contestant they have seen on a television show. Monitoring trends and the most popular programmes can provide us with unique features and games that could plug into our current offering. Having identified 'Deal or No Deal' as a particularly captivating concept, we agreed an exclusive deal with Endemol to use their brand to develop a new bingo variant that synergises the best elements of 90-ball bingo and the fun and excitement of the hit show.

Feedback from our clients shows Deal or No Deal has been immensely popular, and indicates players will continually want to see new branded games. Branded products help us swell our offering outside of the traditional bingo games, as seen with the Celebrity Big Brother-themed side games that have been produced as part of the Endemol tie-up. However, branded content is just one of many ways of acquiring new players and the competitive market dictates that operators explore new advertising and communication channels and continually assess the return from each.

We will, of course, continue to monitor what's engaging consumers; be that on TV, in terms of land-based products and popular games, or within other gaming genres like casino, poker or sportsbooks and establish what can be utilized. Furthermore, the cross selling from casino, games, poker rooms and sportsbooks over to bingo to build our base of players also forms an important part of our strategy.

Players expect a rich, entertaining gaming experience for their side games, and we pride ourselves on being able to provide compelling, networked gaming propositions to our operators and ultimately their players. Branded content certainly increases the diversity of these particular products, but the main criteria is to stick to popular gaming formats such as slots with 'free spins and wilds', while being innovative, such as with our multiplayer slots like Marine Mayhem and Clover Countdown.

The social environment is changing within the virtual world and it is imperative that businesses obtain as much exposure as possible via social networking channels to build awareness of their brand. Bingo operators in particular can maximize profits by exposing their brand on social network sites due to the closeness of the demographic audience. There are many ways of utilising social network sites to gain brand awareness such as advertising banners, promotional movies, detail-registration software or group pages that include forum and blogging sections

However, one area that has, to date, been conspicuously absent from bingo games has been imbedded social networking. So, after nearly a year in development, we at Virtue Fusion Alderney are very proud to have just rolled-out the first-ever bingo games with integrated social networking. Social network sites have a proven model of acquiring, converting and retaining customers, but their continual downfall is their inability to monetise their product offering. That's where bingo sites can add value; by producing a revenue stream. The technology will enable players to develop their own online communities, to chat to friends during games, as well as uploading information and pictures to their profile. All accounts will be screened by Virtue Fusion Alderney's team of online monitors to ensure that all content meets strict criteria for privacy and decency.

Keeping Customers Happy Keeps Customers

Being voted the Bingo Summit 2009's leading Bingo Software Provider means Virtue Fusion Alderney is now the benchmark for the industry and the company everyone wants to beat. There is never a moment to relax and put our feet up, thinking that the hard work is done. With players impatient for more; more variety, more entertainment, more prizes and, ever-increasingly, more value, they are increasingly opening multiple accounts. This allows them to cherry pick the best promotions and the most enjoyable games at the best price. This in turn means that each site is finding it increasingly more difficult to acquire and retain customers.

Aside from driving product innovation, this demand means that we are forced to adapt prizes and create novel promotional content. Progressive jackpots, bonus bets and also new types of games completely unique to the online sector are examples of this. Bingo players now want the ability to spice up their session by experiencing a number of different game variants, hence we now see add-ons like BOGOF, 1TG (one to go) features, losers' prizes and so on.

It is essential that we stay on top of this curve because something else that we are seeing is an increased inquisitiveness and confidence about the average bingo player. They are sampling other gaming content that you'd generally associate with a casino player including games like slots, video poker and roulette. They can try various other games for free and once they feel comfortable enough with a game type they'll start playing for real money.

The need to maintain such a multi-pronged range of products continues relentlessly. That said, the game is constantly evolving, especially online, and, so too, is the demographic of the player with the metamorphosed products providing entertainment sufficient to satisfy the continually changing players' hunger. However, what will remain consistent is the 90-ball bingo game itself, just as basic roulette will never cease to exist.

Our Network: Strength in Numbers

While the development of new games is key to our ongoing expansion, the obvious other attraction is the size and scope of our network which typically accommodates 30,000 players every day and drives total stakes of more than €100,000,000 each month. These figures have grown steadily and help to underpin the growth of the company, just as they will continue to do so.

We offer a flexible network model where operators can utilise our prize pool liquidity as much or as little as they want in offering as many networked games as they require, while still being free to offer the stand alone games they need in order to provide a differentiated, bespoke gaming experience.

This means that, coupled with the individual operators' marketing prowess, it is a formidable combination. The operator benefits as the prize pool liquidity helps drive player liquidity and keeps the cost of acquisition low with the Virtue Fusion Alderney network benefiting as it grows accordingly. It is vital to the success of the company that we continue to explore new market potential both in the UK and abroad. To do this it is often necessary to attract operators from varying disciplines thus widening our player reach and bringing the game of bingo to people who have possibly either never played the game before or have not considered playing online.

Our operators are well aware of the benefits the network brings and it is a major influence when deciding on us as their exclusive provider of bingo software. They are able to offer large prize pool bingo games on a regular basis at no risk or liability to them, and can launch a new networked game that will be guaranteed to have high player numbers, thus minimising the chances of the game bombing after launch.

Many of our larger operators are able to cherry pick the networked liquidity as and when they choose, so that either during off peak periods, or on games with limited players, they can still maintain larger prize pools. A brand and its big marketing budgets will always drive player numbers but the argument for a networked site versus a standalone site remains the same. Ultimately bingo players want to play in a thriving bingo community with a rich gaming offering.

When a standalone site launches, the jackpots are low as the operator needs to make sure they are covering the seed value, in addition there are not many bingo variants on offer. Where is the excitement or attraction for the player to register and deposit? The key is to have a flexible network model whereby the operator has all the benefits of being stand alone, whilst in addition being able to offer the networked games and life changing jackpots from the day they launch.

Sticking to What We Know Best

As the company grows we are often asked whether we are tempted to turn toward B2C. When considering this, the term 'gamekeeper turned poacher' comes to mind. For a number of reasons I do not believe that it is in our interest to enter the B2C market, foremost of which is that it would be like biting the hand that feeds us. It would pitch us in direct competition against the very people with whom we rely upon for our revenue streams.

What is to our benefit is working closely with operators to produce world-beating products and not to take business from each other. There is the view that by going B2C you secure the market base and are more able to determine your future as you are less reliant upon the success of your operators to create market share. Our viewpoint, however, is that by working together we can continually develop and improve the software package and establish ourselves as the foremost bingo software supplier in the marketplace while enabling our operators to retain their individuality. This ensures a competitive and stimulating environment resulting in major entertainment benefits for the players, the very people we need to emain successful.

Developing Trends

Free bingo is something that customers are more frequently searching for - many want the opportunity to play without playing 24/7 and they do not mind hunting for it. This is greatly skewing the performance of each site in the market as free bingo sites on the face of it appear to be leading the market but there are a significant proportion of players among those players who don't spend a single penny.

To overcome this, sites will have deposit requirements to qualify for free games but again players are alert to this and will deposit a small amount to their account knowing this gets them entry. It has huge cost implications to the platform providers as larger player numbers can impact bandwidth size and it soon adds up on a network, meaning infrastructure needs to be more robust to cope with the increase in player numbers. Free bingo has been available on our network for some considerable time now and, although an essential element of marketing to new customers, today's online players are quite savvy and you need to accept that some will be off to the next site offering more for less.

It really is debateable as to whether or not this type of customer has any added value unless they can be retained. The key is obviously to keep the attention span of these players and attract them to other games where they can be encouraged to spend and keep them entertained.

As many bookmakers are finding, mobile phones are increasingly providing a suitable experience for customers with the major issues over connectivity being addressed. At the moment, bingo is available to mobile users, but cannot claim to have a huge player base. Mobile gaming is evolving but not quite as fast as the online product and is less proven, especially in bingo, as a product that can yield significant returns.

However, operators cannot rest on their laurels and need to cover all avenues of game play platforms. Some may want to be first movers in the market and, as long as they are able to soak up the costs of development, it may help them justify the risks. Virtue Fusion Alderney started life as a mobile software supplier and decided to concentrate its efforts on developing the best web based flash product online. We know there is demand for mobile gaming and we'll be looking to find a partner to aid us in launching our bingo solution at a cost that our operators are willing to outlay.

New Territories

We already have a presence in mainland Europe and Scandinavia but before we launched there, and as remains the case, our principle thoughts are that we would only expand into new territories if it is to the benefit of our current clients, not just ourselves. Of course, we always have an eye on new and emerging markets, but the opportunity to develop these are very much restricted by the legislation applicable to the respective countries and we do not want to divert resources away from our main efforts.

Take, for example, the issues with France where state decisions can reverse strategies in a heartbeat. Local vagaries are also important and must be considered when entering new territories. The main point is that this is a part of expansion that must be treated with caution.

There is also the issue of developing multi-jurisdictional business growth - for instance, operating out of Alderney and Malta - and whether that is a logical step more and more operators will take to remain competitive and to generate greater breadth of international operations.

Flexibility is vital in the gaming industry, as we have seen recently with a number of companies moving their operations to Gibraltar, and not for licensing reasons. As such we work closely with the Alderney Gambling Control Commission to provide the best possible service to our operators and also ensure that we remain compliant with the AGCC requirements. It is more through necessity to be able to operate in new territories that we may need to obtain additional licenses, rather than the need to remain competitive.

Bob McCulloch: Business & academic biography

Bob McCulloch is CEO of Virtue Fusion Alderney Ltd.

Born in Leeds; he joined Virtue Fusion Alderney as CEO in 2007 and has since doubled the size of the operations and established it as one of the leading bingo and networked games providers available to the market anywhere in the world.

He originally qualified as an accountant and has since spent much of his career in sales and finance. For a large part of his early working life Bob focused on the global automotive industry, evaluating corporate potential to ensure well resourced, financially secure entities.

Having built up his own business and exited successfully, he moved to Alderney in the late 1980s where he continued in his role as financial consultant to banks, financial institutions and private equity organisations. Bob then saw the formation of the egaming industry in the late 1990s from close quarters, monitoring and watching its growth closely before assuming his role at Virtue Fusion Alderney.

Thursday 09th December 2009 (London, UK) - Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products, has been selected by TeaAndBingo.com to become its software supplier.

The new site is produced by the UK's leading super-affiliate, Digital Prophets, operators of BingoBase.com. The brand and the bingo community will be the focus of a forthcoming TV advertising campaign to promote the venture, set to launch on Boxing Day.

Digital Prophets already runs online bingo portal BingoBase.com which will remain independent as the site will continue to promote other quality UK sites alongside any TeaAndBingo offers.

Digital Prophets Guernsey Limited Managing Director Raj Ramanandi said, "The Virtue Fusion Alderney solution brings us stable, award winning and innovative software allowing us to concentrate on investing in a superb community and innovating with our brand to win market share and expand the audience. TeaAndBingo is very unique and our ad campaign will certainly attract plenty of interest. We are very excited."

"We will have a sustained TV presence throughout 2010. The ads were the brainchild of an agency responsible for some award winning adverts for McDonald's, Walkers Crisps, Sony, VW Polo, Philips, Nikon, Barclaycard and Esso."

Virtue Fusion Alderney CEO Bob McCulloch comments: "We are delighted that Digital Prophets has chosen Virtue Fusion Alderney ahead of the competition. The fact that a super-affiliate has chosen us is testament to the revenue generating capability of our product."

"Digital Prophets' proven ability to drive traffic, combined with their slick TV advertising campaign, makes for a powerful combination. We look forward to building a long and successful relationship with them."

About Virtue Fusion Alderney Ltd (VFA)
VFA is the world's leading developer and licensor of internet bingo products, providing bingo and networked games to some of the world's best-known gaming brands. Winner of 'Best Bingo Software' as voted by the industry at this year's Bullet Bingo Summit 2009, VFA counts Mecca/Blue Square, Ladbrokes, William Hill and Gala among its customer base.

The VFA offering is unique in that it has the largest independent online bingo network, boasting 30,000 players daily, with over 7,000 players playing concurrently at peak time, driving over €100,000,000 in total stakes per month.

VFA, with its multi-currency and multi-lingual products, is now actively marketing into Europe and worldwide. VFA Ltd is operated and regulated from Alderney.

About Digital Prophets Guernsey Limited
Digital Prophets Guernsey Limited is a new breed of gaming operator. Utilising best of breed software, efficient web solutions and cutting edge marketing techniques to deliver successful gaming brands into numerous territories.

Digital Prophets Ltd was founded by Raj Ramanandi and Lee Pickrell, and originally funded by a leading City venture capital fund. Luke Johnson, an original investor in the team, is now involved as Chairman of the company. The business has operated very successfully for four years operating leading egaming portals across the UK and Europe.

Wednesday 2nd December 2009 Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products, will launch the first-ever bingo games with embedded social networking following nine months of development and testing on Tuesday 8th December 2009. William Hill, bet365, Paddy Power, Ladbrokes, Virgin and Golden Hat are the first customers to adopt the new product.

The technology will enable players to develop their own online communities, to chat to friends during games, as well as uploading information and pictures to their profile. All accounts will be screened by Virtue Fusion Alderney's team of online monitors to ensure that all content meets strict criteria for privacy and decency.

Virtue Fusion Alderney CEO Bob McCulloch comments: "Whether online or offline, bingo has always been a very sociable game. With the new networking and profile-building element that we are introducing, players of all our games will be able to chat and stay in touch with their online friends before, during and after their bingo sessions. This marks a major stage in the development of our products. After nearly a year in the making, our clients and their customers will be getting an excellent application that will be fun and easy to use, appealing to players of all ages.'

'It's good to be able to round the year off with the launch of a product which has its roots firmly embedded in our underlying strategy of developing offerings that not only entertain and give customer satisfaction, but also retain their attention. This social networking product, whilst in its embryonic stage, has the potential to increase customer retention and, in future releases, be used as a follow-up and prospecting tool. Watch this space next year for new developments!'

About Virtue Fusion Alderney Ltd (VFA)
VFA is the world's leading developer and licensor of internet bingo products, providing bingo and networked games to some of the world's best-known gaming brands. Winner of 'Best Bingo Software' as voted by the industry at this year's Bullet Bingo Summit 2009, VFA counts Mecca/Blue Square, Ladbrokes, William Hill, Gala, Sky, Bet365, Paddy Power, Virgin and Crown amongst its customer base.

The VFA offering is unique in that it has the largest independent online bingo network, boasting 30,000 players daily, with over 7,000 players playing concurrently at peak time, driving over €100,000,000 in total stakes per month.

VFA with its multi-currency and multi-lingual products is now actively marketing into Europe and worldwide. VFA Ltd is operated and regulated from Alderney.

One of egaming's success stories, online bingo has expanded at a rapid rate. JENNI SHUTTLEWORTH meets Bob McCulloch, CEO of Virtue Fusion Alderney, a company whose own growth exceeds that of the industry.



WITH sky-high jackpots and low-priced entry, bingo has always had mass market appeal. Changes in legislation - namely the smoking ban introduction - left many questioning the future of the game in the UK but, thanks to its seamless digital adaptation, appetite has actually been boosted and both customer numbers and providers have grown hugely.

As the world's leading developer and licensor of internet bingo products, Virtue Fusion Alderney has been at the forefront of the conversion of this centuries-old game to an egaming phenomenon worth hundreds of millions of pounds. Founded in a small office in Margaret Street, just off of London's Regent Street, the company began life in 2001 with a team of five, led by Al Haig-Thomas, developing gaming software. With a UK market now worth in excess of half a billion pounds as a backdrop, Virtue Fusion Alderney has expanded each year, so that not even a decade on the group now employs 285 staff in the capital and Channel Islands.

So then, how has the firm grown into such a dominant player? According to Bob McCulloch who joined as CEO in 2007 it was key decisions made before his arrival in 2005 which set the process in motion. "Focus was initially on soft games and bingo. In 2005 the company launched a mobile platform which was advertised on Orange World and Vodafone Live but still did not make a satisfactory return, so we piled all our resources into online bingo," said McCulloch. "The group now develops and supports a platform featuring 50 games which appeal to bingo players and a full back office solution. It also offers a turnkey service suite including CRM, anti fraud measures, KYC, customer support, chat hosting and affiliate marketing services."

Significant moments in their relatively short history include developing the code for Gala in 2001, obtaining a gaming licence in 2004, launching with their first customer, Mecca, in the same year, and signing a joint-venture with the NBGA in 2006. However, McCulloch is being modest too - the company has doubled in size under his stewardship. The Yorkshireman with a background in accounting, sales and finance names the multi-currency network launch in March 2009 and going live with Endemol's Deal or No Deal bingo six months later as triumphs since he arrived.

Unsurprisingly, McCulloch highlights improving technologies as the main stimulus for the changes in egaming. "The ever-improving speed and availability of broadband and increased power of personal computers is what allows us to continually develop products, while higher consumer sophistication and expectation keeps us on our toes!" comments McCulloch. "New browser-based technologies help shape the way online bingo is provided to the player and will increasingly help to make mobile gaming feasible. Mobiles are increasingly more capable of delivering acceptable gaming experiences and connectivity issues which have plagued the industry are slowly abating," he continues. However, while bingo is available on mobiles, this will not become a priority until it benefits from a significant player network. With their initial focus on mobile gaming they will, though, be ready when that day comes.

The current strategy is further consolidation in the UK and increasing a European presence that contributes towards 30,000 players every day, helping drive stakes totalling more than €100,000,000 each month. "Pressure from the European Commission on member states has accelerated the pace of change in gaming law in a number of countries. But the Commission has not been exerting force in isolation. The financial crisis which started in 2007 has increased Government debt and with it the search for new revenue streams. Impending legislation to regulate online bingo in Italy, France and Germany will probably drive more players online as mainstream media can be adopted to acquire customers further broadening the reach of the game," explains McCulloch.

However, expanding into new territories is not without difficulties and means encountering idiosyncrasies. "Apart from language, the major differences relate to Government legislation and local cultures. As we have seen recently in France, state decisions can turn your strategy upside down. Alternatively, in Italy, the model appears to be one of profitable co-operation between business and Government, providing a stable base from which businesses can progress", says McCulloch. "Regional customs also play a significant part in the success of any venture and there's no underestimating the value of local knowledge and partnerships. However, once again, it's necessary to tread carefully when choosing a local partner as has been the experience of a number of notable companies in both Spain and Italy," he warns.

With a presence on the continent established over two years ago when launching into mainland Europe and Scandinavia, the company is experienced at countering these difficulties. McCulloch also points out the importance of matters closer to home before they potentially head even further afield to places like Asia and - pending legislative changes - America. "We are proud to have Paddy Power, Ladbrokes, William Hill, Bet365, Mecca Bingo, Minxy Bingo, Crown Bingo, Carlton, Virgin, BSkyB and Bauer among our clients. As some of the best names in the business, they are the main focus of our attentions and activities. However, as our company continues to grow, the knowledge, skills and contacts that we will be able to build-up through looking at new markets can only be of benefit to everyone," he says.

But he will disclose a little about what the immediate future may hold: "There are always new projects in the pipeline, without which we would not be able to continue our programme of development. The recent success of the Deal or No Deal game in partnership with Endemol has opened up a new element in the bingo market, and one we intend to exploit. Further branded products are planned, some of which will come to market very shortly."

Bingo has been around for many years and will continue to evolve and be influenced and shaped by future generations, regulation, technology and gaming culture. Bingo operators need to focus on satisfying customer needs and adapting to new markets. They will need reliable platform providers which can offer compliant and innovative new products to outperform the competition. With a knowledge of the UK market and suite of innovative products that are second to none, Virtue Fusion Alderney has already cemented its position at home. Some companies have found to their cost that there can be problems with a hasty expansion. Virtue Fusion Alderney's rise might have been quick, but it has been calculated. Ready to push further into markets abroad, they can be confident in the approach that has served them so well so far.

About Virtue Fusion Alderney Ltd (VFA)
VFA is the world's leading developer and licensor of internet bingo products, providing bingo and networked games to some of the world's best-known gaming brands. VFA counts Mecca/Blue Square, Ladbrokes, William Hill, Gala, Sky, Bet365, Paddy Power, Virgin and Crown amongst its customer base.

The VFA offering is unique in that it has the largest independent online bingo network, boasting 30,000 players daily, with over 7,000 players playing concurrently at peak time, driving over €100,000,000 in total stakes per month.

VFA has recently launched its multicurrency and multi lingual products and is now actively marketing into Europe and worldwide. VFA Ltd is operated and regulated from Alderney.

Introduction

Having survived five centuries as well as a few name changes and incarnations along the way, the game that has universally become known as 'bingo' has perhaps undergone its greatest transformations in the last decade.

The explosion of egaming has breathed new life into the hugely popular pastime that had begun to enter a period of relative decay since the halcyon days of the Seventies and Eighties. It has also created a whole new market worth £550m in the UK alone - currently the largest in the world.

Development of Online Bingo

Born just after the arrival of this millennium, online bingo was still in its infancy when Labour passed the 2005 Gambling Act. The legalisation of online gaming didn't overtly dent bingo's fortunes immediately, but provided the platform for the industry to adapt when the Government next intervened.

I was one of many observers keen to see how the pursuit would respond to the banning of smoking in enclosed public spaces which was implemented in July 2007. While many were sounding the death knell, others spotted an opening and were looking for ways to evolve the bingo product.
While it is fair to say the game is played by fewer people in bingo clubs up and down the country than in the boom years, it is still enjoyed by hundreds of thousands every week, attracted to the traditional game, its social aspect and big cash prizes. So, even if the smoking ban has not led to the instant departure of bingo from the High Street, it did change consumer behaviour - the breaks in games were now used to head outside for a cigarette or two, rather than spending more money on the slot machines inside.

Big operators such as Mecca and Gala Coral were quick to adapt their product to minimise the risks caused by these changes. Fast to acknowledge the new restrictions to their clubs, they headed to the internet, buoyed by the broadband revolution. More sophisticated home computers and quicker internet provision meant that, centuries on from its conception, this latest form of bingo was about to spread quicker than any before it. This is where the story starts for Virtue Fusion Alderney - the world's leading developer and licensor of internet bingo products.

A Twenty First Century Phenomenon

Powered by speedy modern-day processors, entry to the virtual world has opened so many doors that, for the big operators, online bingo will become increasingly important. Like most things to have taken off online, the advent of social networking and blogging has been key. It means news can quickly spread about latest games and, when they are playing, the chat rooms recreate the social pull of old. Meanwhile, the side games, like Virtue Fusion Alderney's Snakes and Ladders product is the alternative to the slot machines.

The shared experience, commonplace in the electronic sphere, means that the international influence has been felt in the British market. Where bingo branched out from its original format and was adapted by a variety of worldwide adopters, these different variations can now be experienced by players in other countries. Previously only played in Sweden, a 75-ball, 5-line variant bingo is now available and popular in the UK while, in the USA, Pattern Bingo is a favourite and now catching on here too. Technological advances also mean that server-based internet gaming systems are easily transposable into different markets, further fuelling this trend.

An interesting parallel between today's electronic version of the game and its predecessor is the means by which the huge jackpots are enabled. One of the reasons behind the surge in active players in the late Twentieth Century was the invention of the 'link' games - an unknowing precursor to its online future at the time - where multiple venues would play simultaneously to allow for bigger jackpots. With a nod to the old adage 'If it ain't broke, don't fix it'; this is the same simple idea which our company uses to deliver some of the largest bingo rewards to be found. Our vast gaming network of key operators has peak traffic of over 7,000 concurrent players staking in excess of €100,000,000 per month - with this increased liquidity, top prizes are comfortably nudging past the million pound-mark.

Innovation is the Name of the Game

In an ever-changing environment, the only way for a company like Virtue Fusion Alderney to maintain our position as a market leader is to be pro-active in the development of bingo as a form of entertainment. The game, in the past, has been shaped by a number of events. It is essential to recognise these events, seize the opportunities and react quickly and positively to remain on top of the pile. We can also begin to shape the outcomes through innovative design and marketing, thus providing the player with a more dynamic and enjoyable game without losing the basics. The recent launch of our Deal or No Deal bingo product is testament to this.

With the changing demographics that have come about with the online market, new product development is made possible where previously it would not have been. Social networking applications have created more sophisticated profiling, grouping, blogging and forums - as proven by Facebook, Bebo, Twitter and MySpace - which are now being developed for the bingo market. Video applications made popular by sites such as YouTube are also being considered, trialled and implemented, in turn, enabling online bingo to tap into a younger audience. Latest research by respected analysts Mintel shows that 20 percent of players can now be categorised in the 18 to 24-year-old age group. Obviously this bodes well for the future, but with this youthful player base it must be remembered comes a decreased threshold for boredom.

There is, however, a limit to the change and a balance must be struck. Had a 1970s player fast forwarded from the bingo halls to the online version of today, they might not be instantly familiar with the game, but they would still identify it as bingo. While it has grown and been influenced by a changing society, the original format has proven robust over a vast period of time. Just about anything is possible in the online world, even if the possible mutations of this game are not totally endless. That said, with the fundamentals we are working with, I believe there will be plenty to keep us occupied for a long time to come.

Flexibility is also key to success in the online bingo industry. By offering both end-to-end and integrated models as options, it enables operators to maintain their systems for customer support, chat rooms and so on, while still being able to adopt the many advantages that our software provides. For new entrants without the necessary back office, this can be provided at a minimal cost to the operator too.

It is vital to listen to customers. There needs to be a degree of give and take, based on feedback, in order to be creative and continue with an innovative approach. Any business that ignores its clients is destined for disaster - good customer retention is only made possible by being responsive to demands for product review and reacting quickly to changes in the marketplace. However, the importance of creating a culture within the company based on innovation - encouraging new concepts and products that derive from an individual's ideas - can never be underestimated.

Marketplace

So, who then are these customers? Well, at the moment the core clientele for ourselves and, I imagine, most of our competitors, are bookmakers, land-based operators, media companies and the pure online players. You can tell a lot about a company from who their clients are, and we are fortunate enough to have relationships with some of the most renowned and reputable in the business. Paddy Power, Ladbrokes, William Hill, Bet365, Mecca Bingo, Minxy Bingo, Crown Bingo, Carlton, Virgin, BSkyB and Bauer Publishing are all on our roster.

Other companies in the sector would also come under the banner of prospective customers too, but considering this is a very dynamic market, there would be no reason to rule out the likes of supermarkets and the leisure sector; airlines, cruise liners and hotel chains could all conceivably be inserted into the potential 'new business' category.

It is only possible for a company like ours to be in a position to even contemplate this because of two factors - the aforementioned demand created by the changing market, and our experience in the UK. Make no mistake, the UK market is still a key one for Virtue Fusion Alderney, but it is an increasingly challenging one. What with the number of competitors attempting to gain a foothold here, it is probably the most aggressive and mature in the world, but our know-how gives us the stage from which to expand.

We have already launched into Scandinavia and Europe, which we did as far back as 2007, and are pleased with the steady progress we've seen there. Rapid expansion can lead to mistakes - as we have seen with some operators who have done so too quickly into other markets. Whether or not our experiences will lead us further afield, say towards the Asian market, we will have to wait and see as there are many other equally important opportunities to explore in markets much closer to home. One thing is for sure though, unlike some of our competitors, we remain focussed entirely on B2B.

As with any other trade, the quality of the product is essential. When I look back to some of the early offerings available in the sector, it is amazing how far things have come on. Keeping up with the pace that the online world revolves is one hell of a challenge, but it should be seen as fun, not frightening. In turn, our market is moving just as quickly. To stay ahead of the game, and on top of consumer demands, means that you can never rest on your laurels.

We were winners in the 'Best Bingo Software' category at the Bullet Bingo Summit 2009 and, while we were delighted with the recognition of our efforts, this will mean little if we stand still. We want to have the best products every year. One of our recent efforts of which we are particularly proud is Deal or No Deal which is based on the well-loved television show of the same name. Our arrangement with Endemol means that we are the only suppliers allowed to develop Deal or No Deal bingo games and we have received very encouraging feedback from the likes of Mecca Bingo who are reporting it to be a real hit.

Alderney's Advantages

Having lived in the Channel Islands for the past 20 years, I have witnessed first-hand the growth of the industry here. As one of the first gambling commissions - it has gone on to become one of the most respected and well-regulated in the world - Alderney is a very attractive host for a bingo developer like ourselves.

The Alderney Gambling Control Commission (AGCC) take matters of social responsibility extremely seriously and this conforms very closely to our method of business, making sure that players have the opportunity to self-exclude and limit their accounts. The AGCC regularly audit our internal control systems to ensure we measure-up in all aspects which gives confidence to not just ourselves, but also those we supply to.
It has been well documented that we've applied for a Maltese licence too, but this in no way conflicts with what we do in Alderney or suggests a movement away from the island. Alderney will remain the hub of our operation, but obviously Malta could assist with potential openings in Europe through multiple jurisdictions. That will be something to look at further down the line.

The Future

I dare say that I am not the only one keeping an eye on the American market. Obviously, the USA represents the largest potential bingo market in the world so it makes sense that we position ourselves to be able to take advantage of the opportunity as and when legislation allows. However, I have given up speculating on when the American market will open up until there are more positive signs.

So, looking to the more immediate future and potential areas for growth in online bingo, I see further consolidation before any big steps; an approach reflective of the global economic climate as this decade closes. Many pundits are looking at the UK market as an advanced one. If this is the case then such markets tend to segment, which is the next stage of growth. The quicker one can read the market, recognise its wants and needs and create the associated service, the more likely the business will dominate, which will be increasingly niche. There is, then, still a lot of potential within these shores - you just need to be astute, tuned in to what is happening and, most of all, inventive.

Conclusion

Call it what you will, bingo, and more lately online bingo, is a hugely popular hobby, pastime or gambling activity with a mass market appeal that has attracted an enormous following: already 3.5 million in the UK according to recent estimates. Although not quite in the same numbers, operators and consumers have flocked to the game too, making it a multi-billion pound industry and one that only seems to be getting bigger. To the right companies and individuals there are vast opportunities for now and for the future.

Bingo is one of the most resolute gaming activities out there. It has had to adapt to survive, but not only has it done this, it has also expanded on each occasion. Sure, there will be periods where we see a plateau in development in the years ahead, but I am positive that with the innovation we have seen, and are seeing, this will provide opportunities, not problems, meaning there will continue to be windfalls for players and operators alike.

Deal is next phase in Offsidebet.com's 'best of breed' partner strategy

Friday 23rd October 2009 (London, UK) - Offsidebet.com, the progressive operator focused on new and emerging online gaming markets, today announces that it has chosen Virtue Fusion Alderney as its online bingo supplier. The new bingo site will initially target the Spanish market, with plans to roll out to Eastern Europe going forwards.

As Offsidebet.com's latest 'best of breed' partners, Virtue Fusion Alderney, the world's leading developer and licensor of internet bingo products, joins a product suite that already includes the likes of Net Entertainment for casino and Playtech for poker.

Bob McCulloch, CEO of Virtue Fusion Alderney, comments:"We are delighted that Offsidebet.com has chosen Virtue Fusion Alderney as their preferred partner for online bingo. Although a relatively young company, the directors of Offsidebet.com have a wealth of experience in the online gaming market. This experience is evident in the way in which they have developed their business plan and the success of the company to date - we look forward to working with them."

Offsidebet.com is headed up by CEO Matt Jellicoe, the former Marketing Director of Sportingbet, and COO Leonid Ponktrantenko, who has held senior positions at Sportingbet and PartyGaming.

Matt Jellicoe, CEO of Offsidebet.com, adds:"Virtue Fusion Alderney provides us with, not only a feature-rich product, but also with unrivalled European prize pool liquidity, making our decision in selecting them a very straight forward one."

About Virtue Fusion Alderney Ltd (VFA)
VFA is the world's leading developer and licensor of internet bingo products, providing bingo and networked games to some of the world's best-known gaming brands. VFA counts Mecca/Blue Square, Ladbrokes, William Hill, Gala, Sky, Bet365, Paddy Power, Virgin and Crown amongst its customer base.

The Virtue Fusion offering is unique in that it has the largest independent online bingo network, boasting 30,000 players daily, with over 7,000 players playing concurrently at peak time, driving over €100,000,000 in total stakes per month.

About Offsidebet.com
Offsidebet.com went live in 2008 and has been making fast in-roads against the competition. The aim is clear - to provide the best possible betting service to its customers at prices slightly better than most internet companies, better customer services and an aim to pay out faster than anyone else. Offside has a very strong team comprised of management from major betting companies from both West and Eastern Europe.

Bob McCulloch CEO of Virtue Fusion Alderney is available for interview.

• Endemol UK signs exclusive deal with Virtue Fusion to develop bingo themed games based on global hit Deal or No Deal
• Virtue Fusion also secures non exclusive rights to produce games for Big Brother and Golden Balls

Endemol UK, a leader in entertainment programming today announced it has signed an exclusive Brand and Software Licence Agreement with global online bingo licensor Virtue Fusion (Alderney).

This exclusive deal licenses Virtue Fusion to develop a Deal or No Deal bingo game, which will combine elements of the successful TV show and traditional bingo games. The innovative Deal or No Deal bingo game is scheduled to be rolled out on the Virtue Fusion network at the end of October. Mecca, Paddy Power, bet365 and Sky have already confirmed they will host the game, with more operators to be announced in due course.

In addition to the exclusive deal, Virtue Fusion (Alderney) has non- exclusive rights to produce mini-games, fixed odds games and scratchcard games for popular Endemol formats Deal or No Deal, Big Brother and Golden Balls.

Three unique progressive networked scratchcards will be available to Virtue Fusion operators from autumn. The games will have the theme 'Quick Scratch' and will be in both mini-game and stand alone format.

Bob McCulloch CEO of Virtue Fusion comments; "This represents a huge opportunity for our operators to partake in this exclusive contract. This deal with Endemol is further evidence of our determination to strengthen our product range and provide the tools with which to progress our business ahead of the competition"

Endemol UK's Head of Products and Brand Exploitation Jurian van der Meer adds "Deal or No Deal is one of Endemol's biggest TV hits worldwide and I'm really excited to see it combined with bingo to create a new entertainment experience. By partnering with Virtue Fusion to develop the game we're able to distribute to some of the biggest operators in the bingo industry."

Virtue Fusion (Alderney) Ltd the world's leading supplier of Internet bingo solutions announced today that it has contracted with Begawin.com the Maltese licensed sports and casino portal. VFA with its networked, multicurrency, multilingual bingo and gaming platform provides the perfect platform for site operators to establish themselves in Europe. In a discussion with Bob McCulloch CEO of VFA he said, "The Spanish online gaming market is set to increase to around €4.2 billion by the end of 2010 and our association with Begawin is a vital part of our strategy to position VFA and our site operators as leaders in this lucrative market. Together with the resources and management experience of Begawin and Virtue Fusions award winning software, the future in Spain is looking very positive.

ABOUT VIRTUE FUSION (ALDERNEY) LIMITED
Virtue Fusion Alderney, winner of "Best Bingo software" as voted by the industry at this year's Bullet Bingo Summit 2009, develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Virgin, Paddy Power, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency and multi lingual products and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

About Begawin.com
Begawin is a privately held company which is seeking to take advantage of the deregulation of the European online gaming market with a diverse gaming portfolio which not only includes Bingo but Sports Betting, Live Betting and mobile betting. The company has been in operation since 2007 and has an excellent track record within the gambling, gaming and entertainment market, where it is held in high regard by its competitors and suppliers alike. The company is regulated and licensed in Malta.

The game of Bingo is being played by new people, in new markets using new technologies and under new regulations.

In the beginning...
The game of Bingo derives from the first Italian lottery games played in the 15th Century. For centuries the game has more or less been played out in the same format until the 21st Century when the first online Bingo games were offered to the public. In the UK Bingo developed its roots in the North. It really took hold through the 1970's and early 80's when pressure on the cinema industry provided a large portfolio of cheap, well located property from which to make Bingo widely available. In 1994 the introduction of the National Lottery provided the the Bingo Association's National Game with some stiff competition, two years later the first online gambling games were offered on the internet and in 2001 professor Budd was commissioned by the Government to recommend policy towards online gaming which was the precursor to the 2005 Gambling Act.

Government intervention:
Apart from the Gambling Act 2005 which paved the way for the UK Government to sell more casino licences and made online gaming legal, a ban on smoking in all public buildings, imposed in July 2007 reduced Bingo club gaming revenues and helped to bolster the online market. Instead of playing slots during the breaks in Bingo sessions, some players opted to go outside for a smoke whilst others decided to stay at home and play online. The Act also specified limits on the number of so called section 21 machines in clubs which put further financial pressure on club based Bingo. Alongside these challenging issues posed by the Government, in March 2009, GPT was increased from 15% to 22%. In response to this pressure, the industry reacted in a number of ways. First it has provided more investment into the online markets, which have grown by 150% over the past 3 years. Second, it has become more fragmented, with the largest company, Gala pulling out of the National Game, thereby reducing the size and appeal of prizes in all clubs across the country and third, it has been forced to accelerate innovation in clubs to appeal to a new younger market. For example Mecca introduced 'Bin-glo', an after hours Bingo session aimed at a younger market, in its newly refurbished Beaston club. It is early stages but the first signs are encouraging. Furthermore most Bingo club operators are now experimenting to some extent with electronic Bingo on hand held devices.
Outside the UK, pressure from the European Commission on member states has accelerated the pace of change in gaming law in a number of countries. The EC has not been exerting pressure in isolation. The financial crisis which started in 2007 has increased Government debt and with it the search for new revenue streams. Impending Government legislation to regulate online Bingo in Italy, France and Germany will probably drive more players online as mainstream media can be adopted to acquire customers further broadening the reach of the game.

International Influence:
Standing at 550 million GBP in size, the UK online bingo market is the largest and most mature in the world. Much expertise has been developed in this market and is soon to be exported to Europe where most growth in online Bingo is now expected. Conversely many overseas versions of Bingo have already been made available to the British market. 75 ball 5 line variant bingo, previously only played in Sweden, is now available and popular in the UK. In the USA Pattern Bingo is very popular and is beginning to catch on in the UK. Server based internet gaming systems are easily transposable into different markets

Changes in technology:
2003 saw the emergence of the first UK online bingo sites and gaming from home and in particular bingo became a rapidly growing form of entertainment. This was due in no small part to improved availability of broadband, increased power of PCs and higher levels of consumer sophistication and expectation. In the UK the online Bingo market is now estimated to consist of 700,000 active players, only 15% of the land based market but a significantly more profitable one. Globally the online Bingo market is worth 1 billion GBP and is growing faster than any other part of the online gaming market.
New browser based technologies help to shape the way online Bingo is provided to the player and will increasingly help to make mobile gaming feasible. Mobile phones are increasingly more capable of delivering an acceptable gaming experience and connectivity issues which have plagued the industry are slowly abating as can be seen through the Probability PlC's latest financial results. Currently bingo is available on mobile phones, but is not however benefiting from a significant player network. The effect on large pooled jackpots to mobile networks could be considerable, but this is still some way off until the advances made in mobiles are more universally adopted .
Handheld devices in clubs are increasingly made available to players too. Devices such as Third Rock's Planet platform or Inspired's equivalent are becoming more sophisticated and will soon offer the same sort of experience made available to online customers. Convergence of play between club and online has so far been forbidden under most national laws and until taxation on gaming win has been harmonised between club and internet, this is likely to continue. Both markets will benefit from their joining by being able to offer bigger prizes to all their customers.

Demographics:
UK clubs have seen a drop of 16% of their players since the smoking ban of 2007 was introduced. Over this same time, around 6% of club players have started to play Bingo online. "There is now a slow bleed of club players to the online world", according to the latest Mintel report.
The majority of online bingo players are new to bingo (not necessarily new to online gaming) and are much younger than their land based club contemporaries. Skilled and white collar professionals make up more than 38% of the UK bingo playing population of Britain with 60% under the age of 45 and 20% aged between 18 and 24. Young affluent professionals are now finding bingo to be a convenient and entertaining form of recreation.
With the changing demographics of the online market, new product development is made possible where previously it would not have been. Social networking applications such as more sophisticated profiling, grouping, blogging and forums proven by Facebook, Bebo and MySpace are now being developed for the Bingo market. Video applications, made popular by sites such as Youtube are also being considered and developed.
New emerging player segments such as "The Underground Rebel Bingo Club" with a club rule dress code of "weird, flash or dangerous", are attracting younger players in their teens and early twenties - this is bingo but not as you and I know it. Not for them is the old paper based game.

Looking forward:
Bingo has been around for many years and it will continue to evolve and be influenced and shaped by future generations, regulation, technology and gaming culture. The game has had an uncanny way of re-inventing itself which is a testament to its core gaming strength. The pace at which the market is developing is reflected in the speed at which the product set is evolving. Bingo operators need to focus on satisfying customer needs and adapting to new markets. They will need reliable bingo platform providers which can offer compliant and innovative new products to outperform the competition. Virtue Fusion (Alderney) Ltd is committed to providing its operators with a competitive advantage by being the first to market with new products and services that satisfy the consumer thirst for greater entertainment and prizes.

For more information, please contact:
Bob McCulloch, Virtue Fusion (Alderney) Limited, +44 (0) 1481 823581, bob.mcculloch@virtuefusion.com

About Virtue Fusion (Alderney) Limited
Virtue Fusion Alderney, winner of Best Bingo Software 2009, as voted by the industry at this year's Bullet Bingo Summit 2009, develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Virgin, Paddy Power, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency and multi lingual products and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

27 August 2009 Virtue Fusion (Alderney) Limited announced today that it had successfully established an expanded, new customer service facility at their head office in Alderney.

Following the move to larger offices in Alderney, Virtue Fusion (Alderney) Limited has decided to transfer services previously located in Malta and increase the Customer Service operation to provide industry leading Customer Service support.

Bob McCulloch CEO of VFA said, "Excellent customer support is an essential requirement to ensure good customer relationships and thereby the success of our business. We are constantly looking for ways to improve both our products and the services we provide. By expanding our operation and locating it within the head office environment we can better manage Customer Service ensuring consistent and regularly updated training so that our customers can receive the service they expect.
Additionally we now provide our customers with another means of communication over and above email and telephone to resolve issues they may have. The introduction of Live Chat enables us to be far more pro-active and responsive. Players with potential issues can be identified as having a difficulty and be provided with assistance before it becomes a problem."

For more information, please contact:
Bob McCulloch, Virtue Fusion (Alderney) Limited, +44 (0) 1481 823581, bob.mcculloch@virtuefusion.com

About Virtue Fusion (Alderney) Limited
Virtue Fusion (Alderney) Limited, winner of "Best Bingo software" as voted by the industry at this year's Bullet Bingo Summit 2009, develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion (Alderney) Limited continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Virgin, Paddy Power, Bet365 and Gala. Virtue Fusion (Alderney) Limited has recently launched its multicurrency and multi lingual products and is now actively marketing into Europe and worldwide. Virtue Fusion (Alderney) Limited is operated and regulated from Alderney.

July 21, 2009 (London, UK) Virtue Fusion Alderney, the world's leading supplier of Internet bingo solutions, is pleased to announce the launch of their new networked progressive jackpot slot, Thor's Thunder.

Thor's Thunder is a 5 reel 20 line slot with a progressive jackpot seeded at £50,000, wild symbol and feature round. Players can stake between £0.01p and £5.00 per line and win a percentage of the jackpot based on the stake value per line by matching 5 lightning symbols in a row on an enabled line. The lightning symbol is also wild and will substitute any symbol apart from the bonus round symbol (Hammer). In the feature game the player must select between 3 shields to reveal a multiple win amount.

Bob McCulloch, CEO of Virtue Fusion Alderney said, "The development of this slot evidences further the intention of the company to produce stimulating games for our operators and their players. By maintaining the players' attention, we can continue to improve their site retention and ultimately their market share."

For more information, please contact:
Melissa Ross, Lyceum Media for Virtue Fusion, +44 (0) 207 9766 469, melissa@lyceummedia.com

About Virtue Fusion (Alderney) Limited
Virtue Fusion Alderney develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency product and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

For more information, please contact:
Melissa Ross, Lyceum Media for Virtue Fusion, Tel:+44 (0) 207 9766 469, melissa@lyceummedia.com

About Virtue Fusion (Alderney) Limited
Virtue Fusion Alderney develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency product and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

London 18 June 2009 - Virtue Fusion were awarded the accolade of Best Bingo Software 2009 at the Annual Online Bingo Summit held at the Millennium Gloucester Hotel. In a statement from Bob McCulloch CEO of Virtue Fusion Alderney he said, "we are absolutely thrilled with this honour which is a tribute to the vision of the company, its dedicated team of people and our focus on core activities."

Speaking from the conference Joe Saumarez Smith of Crown Bingo said: "We were delighted to see Virtue Fusion win this award. Their software is undoubtedly the best of breed and they only seem to be pulling away from the opposition in terms of improvements."

Message from Andy Harris at Ladbrokes - Congratulations on the award. As a customer of Virtue Fusion for over three years now, it's good to see your software receiving the industry recognition it deserves.

Anna Conley Bingo Operations Manager at William Hill said, "It comes as no great surprise to us that VFA has been named Best Bingo Software provider, ever since we started to use them we have substantially increased our business and share of the market."

When asked what he thought were the major factors which contributed towards the success of the software Bob replied "Our process of continually evaluating our customers' needs whilst maintaining our flexible network model enabling operators to retain their own identity.I look forward to Virtue Fusion being in the frame next year."

For more information, please contact:
Melissa Ross, Lyceum Media for Virtue Fusion, +44 (0) 207 9766 469, melissa@lyceummedia.com

About Virtue Fusion (Alderney) Limited
Virtue Fusion Alderney, winner of the accolade - Best Bingo Software 2009, develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency product and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

Bucky Bingo has renewed their contract with Virtue Fusion for a further five years as their sole software gaming provider. Bob McCulloch of CEO of VFA stated that he was "delighted that Bucky Bingo had decided to renew their contract, further consolidating our position as the number one independent bingo and gaming software supplier. We are constantly reviewing the market and our products with the aim of providing ultimate consumer satisfaction, resulting in high levels of customer retention for both B to C and B to B relationships. With our multicurrency, multilingual networked products we are able to provide Bucky Bingo with the ideal platform for the continued growth of their businesses."

Andy Cunningham CEO of Buckingham Bingo commented "Bucky Bingo is delighted to be resigning with Virtue Fusion. We did look around at the competition but were swayed by the bingo offering, and the side games available at VF, which have been hugely popular with our players. We were also persuaded by VF's people, who I believe; genuinely have our interests at heart."

In response to Andy Cunningham's statement Bob McCulloch said "Whilst it is vital to the success of our operators that we continue to provide innovative and timely products to suit their markets, equally as important, particularly with our end to end customers, is that we provide a customer support service which is second to none. The re - signing of Bucky Bingo is a tribute to the conscientious and diligent staff at Virtue Fusion who ensure that good working relationships are maintained with both the site operator and the end consumer. It's good to see the old maxim still applies - people do business with people they like and trust."

20 May, 2009 (London, UK) "Virgin Games has announced that Virtue Fusion, the world's leading supplier of Internet bingo solutions, is re-launching the Virgin Bingo platform (previously with St Minver), on the Virtue Fusion network.

The Virtue Fusion bingo network operates on an aggregated model so that all partners in the network will benefit from shared critical mass and large jackpots. Virtue Fusion, having pioneered the mini game, has the largest selection of games that can be played in the Bingo client. These games are also networked to provide the largest prize pools to be found on the web. Innovative networked games such as Marine Mayhem, Clover Rollover and Big Top Tombola have proven themselves to be highly popular with players.

Simon Burridge, CEO Virgin Games, comments: "It was important for Virgin to select a partner who could give our players the widest choice of game variants, jackpot sizes and price-points. Virtue Fusion's network is undoubtedly the market leader in this respect. We are delighted to be joining the Virtue Fusion network and are looking forward to growing our business over the coming years."

Bob McCulloch, C.E.O. Virtue Fusion (Alderney) Ltd comments: "We are delighted that Virgin Games has chosen Virtue Fusion's industry leading software for their bingo offering. Virgin will benefit through our flexible networked approach to Bingo by offering small games that are good for communities whilst leveraging the power of the network by offering the biggest jackpots available."

Simon Burridge continues: "We value Virtue Fusion's flexible network model because we value the right to offer something different. VF's network structure allows us to be just what we want whilst benefiting from the largest prize pools available online today."

For more information about Virgin Bingo please visit www.virgingames.com/bingo/

ABOUT VIRGIN GAMES
Virgin Games (http://www.virgingames.com), a subsidiary of Virgin.com Ltd, launched in June 2004 and has quickly established itself as one of the leading gaming websites in the UK. Virgin Games comprises four distinct offerings:

• Virgin Casino, part of the Wagerworks network, brings consumers classic casino offerings like blackjack and roulette, as well as great feature slots like Monopoly, Cluedo, Elvis Multi-strike and the highly popular Mega-jackpots progressive games, with a seeding value of £1,500,000
• Virgin Poker, part of the Boss Media network, offers a huge array of games and content for beginners through to experienced pros - as well as the most generous loyalty scheme in the industry
• Virgin Bingo, part of the St Minver network, offers cash prizes worth thousands of pounds in the progressive jackpots, as well as featuring regular celebrity guests in the Virgin chatroom

ABOUT VIRTUE FUSION (ALDERNEY) LIMITED
Virtue Fusion Alderney develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency product and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

Virtue Fusion (Alderney) Limited, the world's leading supplier of online bingo software, is pleased to announce that Paddy Power plc, Ireland's largest betting and gaming company, has signed a long term licensing agreement to have Virtue Fusion supply a networked Bingo and games package from. Previously, Paddy Power Bingo had been part of a bingo network powered by Parlay Entertainment technology.

"Having a company such as Paddy Power with such fun and accessible brand values is a perfect match to showcase the community aspects that the Virtue Fusion platform delivers" Bob McCulloch C.E.O. of Virtue Fusion (Alderney) Limited

Christopher Coyne, Head of E-Gaming, Paddy Power said: "Liquidity is key in pari-mutuel games such as Bingo. We're now joining the largest Bingo network available and through this move to Virtue Fusion are able to offer our customers greater product and better mini games not to mention more compelling Bingo prizes".

"In the world of online Bingo, both network and standalone solutions are proven business models. However as the industry matures, there seems to be pressure to offer regular large and exciting prizes to players and this is made possible only through linking sites. Virtue Fusion is unique in that it offers large games to all its customers as well as facilitating smaller community style games" said Bob McCulloch.

About Paddy Power plc
Paddy Power, founded in 1988 by the merger of three existing Irish high street bookmakers, is listed on both the Irish and London stock exchanges. Since launching paddypower.com in 2000, they have emerged as one of the leading gaming brands in both the UK and Irish markets. In that time, Paddy Power's online gaming business has extended its offering to poker, casino, financial spread betting, skill and fixed odds gaming products.
Paddy Power takes an unconventional approach to betting and gaming believing them to be firmly rooted in the leisure and entertainment space. As such its mission is to make betting fun. The company is renowned for their inventive and often irreverent marketing and advertising campaigns.
The addition of an online bingo product is a perfect fit with its fun, fair and friendly ethos and allows them to target a wider gaming audience.

About Virtue Fusion (Alderney) Limited
Virtue Fusion Alderney develops Bingo and networked gaming solutions for the online gaming industry, primarily contracting with existing online gaming operators, bookmakers, land-based operators and media companies. Virtue Fusion Alderney continues to be the world's leading developer and licensor of Internet bingo products, with a gaming network offering some of the largest bingo prizes to be found, due to its vast network of key operators and peak traffic of over 6,000 concurrent players. The Group specializes in providing Bingo, networked games, slots and scratch cards to some of the world's best-known brands, including Mecca, Ladbrokes, William Hill, Sky, Bet365 and Gala. Virtue Fusion has recently launched its multicurrency product and is now actively marketing into Europe and worldwide. Virtue Fusion Alderney Limited is operated and regulated from Alderney.

Virtue Fusion Alderney have developed this single hand, single player, multi-deck version of Black Jack. Being a relatively high return to player game this will encourage players to continue on site for longer periods. VFA now have the two top performing casino table games embedded in its Bingo client. Offered in a user friendly fashion that will appeal to Bingo players who might fancy an extra flutter whilst in the comfort of their Bingo environment.

With all of us looking towards the summer and many with views to enjoying some home grown fruit and veg., this standard 3 reel, 1 line pub style slot with features such as autobet up to 50 games, manual hold and nudge, has to be a seasonal winner. Stakes can vary from 10p to £20 with a maximum win of £10,000.

As the name implies, there is a lot of money to be won on this game due to its £10,000 seeded progressive jackpot. With 5 reels,20 line slot, wild symbol, up to 30 free spins, animation and sound is of the highest quality this is maximum entertainment value for players.

All games are multi-lingual (Spanish, Danish, Norwegian, Swedish and English) and multi-currency (Euro, Krona and Pound Sterling) and are available as a mini game or stand alone format.

In a recent interview Bob McCulloch C.E.O. of Virtue Fusion Alderney explained the company's thinking behind the development of these new games: "It is very easy to fall into the trap of overcomplicating what should be simple straightforward easy to play games. These new releases are not complex, but are designed to be entertaining and player friendly, ensuring maximum satisfaction at all times and encouraging players to remain on site. At Virtue Fusion Alderney we believe that we are on the right track by taking on board what our customers have been telling us they need. By listening to our customers' needs we have produced this selection of games that will improve customer retention and also plug any gaps that may have existed in our current portfolio."

29 April 2009 - Virtue Fusion Alderney's announced the launch of its multi-currency, multi- lingual, networked software with Sweden's newest and eagerly awaited site operated by Svenska Bingo.
Bob McCulloch C.E.O. of VFA stated that "our cross border software will enable Svenska's players in Sweden to link into the same networked prize pools that UK players have enjoyed for some time now, generating larger and more attractive jackpots. Players will not only have the games in Swedish but will also see the converted prizes in SEK"

The launch of this product in Sweden is a good indication as to the way the market is moving towards European and networked prize pools. This is being seen by the industry as yet another innovative and exciting development from Virtue Fusion.

Philippa Hellberg manager of Svenska Bingo said "Our goal is to create a safe, trustworthy yet highly entertaining environment for all our players. We are passionate about bingo and aim to make Svenska Bingo one of Sweden's most popular bingo sites"

After winning £240,561 Glen Johnson has become Crown Bingo's biggest ever winner!

Glen (loves2bingo) netted nearly a quarter of a million pounds by winning the jackpot on the popular side game Lucky Ladies 88, after being a member for just 10 days!

Glen, who has been housebound for four years with spinal problems will use the money to pay for mobility equipment to help him get about and help out around the house and of course to spoil his wife and two young kids!

Crown Bingo's very own CM Tunaman and CM Star visited Glen to congratulate him in person. "Congratulations on your big win Glen! We're so pleased to see a Crown Bingo player hit the jackpot! It was brilliant meeting one of the Roomies and we wish Glen and his family the best of luck for the future!"

Lucky Ladies 88 is one of many side games on Crownbingo with a giant progressive jackpot. Login and play today at Crownbingo for your chance to join Glen and become one of their big winners!

BELLE08 has won a massive £111,967.08 by playing online at Mecca Bingo
Having staked only £1.80 on this particular slot game at Mecca Bingo she was overjoyed when the Lucky Ladies came in!

On the day of her win BELLE08 very nearly didn't go online to play bingo at all,

"Funnily enough I was at work during the day and I told a guy at work 'I feel really lucky today' I think I might go bingo' Anyhow I didn't go but I decided to play online instead."

"I was at home in the evening sitting in my pyjamas when the reels came in. At first I thought I had only won £1000 or so. I felt like I had a stroke when I saw that I had won that much, I felt poorly. I couldn't believe it! I never thought you could win these amounts online. I haven't slept for a week since my win"

A very kind BELLE08 has shared some of the money with family, investing some and is now planning a holiday down under "I have given my sister some of the money and plan to invest the rest. Oh and I would like to go to Australia. I just want to say a big thank you to Mecca Bingo and Bingo Dave for all your help and for my great win"

If you fancy the chance of winning like BELLE08, the Lucky Ladies 88 slot game at MeccaBingo can be found in the bingo game under the Mini Game tab called 'Slots'

April 23rd 2009 (London, UK) - Virtue Fusion Alderney, the world's leading supplier of Internet bingo solutions, is pleased to announce that Talarius, the company behind Quicksilvergames.co.uk (formerly known as Cyberslotz) has launched its newest online offering, Quicksilver Games, with Virtue Fusion's bingo software and network.

The launch, due April 22nd, has been eagerly awaited by the Company's rapidly growing customer base. The launch represents the first Maltese operator to land on Virtue Fusion's sales ledger. "We are delighted to be launching our Bingo platform with the number one Bingo and networked games provider. We're thrilled to offer some of the largest prizes available to our customers, both in Bingo and also in slots" said Brendan Redmond, CEO of Talarius.

Bob McCulloch, CEO of Virtue Fusion Alderney Ltd said in response, "We are very excited about the growth potential Bingo offers Quicksilvergames.co.uk and we are looking forward to working with their team over the coming years. The opportunity provided through cross promotions in their 186 Quicksilver gaming venues is truly exciting."

Talarius chose the Virtue Fusion Alderney bingo network - which operates on an aggregated model so that all partners in the network will benefit from shared critical mass and large jackpots.

Virtue Fusion Alderney, having pioneered the mini game, has the largest selection of games that can be played by the Bingo client. These games are also networked to provide the largest prize pools to be found on the web. Games such as Clover Rollover and Big Top Tombola have now proven themselves as effective money generators.

Talarius has unveiled its latest online offering, Quicksilver Games, using Virtue Fusion Alderney Ltd.'s bingo software and network.

Launching on Wednesday, Talarius' offering is now part of the gaming solutions provider's aggregated bingo network that shares jackpots between all of its partners.

"We are looking forward to working with their team over the coming years," said Bob McCulloch, Virtue Fusion's chief executive, in a prepared statement.

Virtue Fusion said that Talarius is the first Maltese operator it has signed.

In March, Virtue Fusion signed its third long-term licensing agreement with Rank Group.

Multi-currency bingo is the ultimate solution for multi-currency sites

March 27th, 2009 (London, UK) - Virtue Fusion Alderney launches its ultimate solution for multi-currency sites and is liquidizing its overseas player base. Players from all over Europe (and beyond) will now all link into the same prize pools generating larger and more attractive prize funds for players. Players will not only see game names in their selected language site but they will also see the converted prizes in their base currency.

This is seen as a great achievement by Virtue Fusion Alderney as it now means that operators who wish to share their liquidity across their various currency offerings can do so without having to tap into the Virtue Fusion Alderney networked liquidity. On top of that, if operators wish to link into the larger prize draws e.g. the BingoLinx games that occur at 6pm and 10.30pm (GMT), they can do so thus creating a 'Euromillions' style scenario where players across Europe play for the same prize jackpots.

CEO Bob McCulloch stated, "This puts Virtue Fusion Alderney's client base in good stead to compete with established Bingo Sites in countries like Spain, Sweden and Denmark etc. We don't need to build a customer base from scratch as we are able to show large player numbers and prize pools from launch also eliminating the need to expose ourselves to large marketing liabilities."

The system is already set up to include other currencies other than GBP, Euro, Swedish Krona and Danish Krona so when an operator ventures into other territories they are safe in the knowledge that Virtue Fusion can support them in establishing a strong presence abroad with higher prize pools.

Marine Mayhem is a new slot game that introduces some great multiplayer functionality. The concept of the game is that players have between three and six minutes depending on the time of the day to accumulate as many points as possible from playing the slot. There is a leader board that shows in real time the top 15 players and also your position on the table. There is also a countdown so that you know how long you've left to climb the table and win the jackpot. This provides a real competitive experience to the game that you don't normally get from slots. I found myself using the auto play functionality so that I could make sure I played as much as possible!

The layout makes great use of the real estate but to get the best experience you need to play in full screen. Once in the game I initially found the text difficult to read. However, after expanding the size of the window the text was easy to read and the graphics really came to life.

The introduction of the community aspect to the slots has really improved the user experience. Regular bingo players who currently find slots boring are likely to be enticed into playing.