Mr. James Lanthier reports

TANGELO REPORTS 2017 Q1 FINANCIAL RESULTS

Tangelo Games Corp. has released its financial results for the first quarter of 2017 (the three-month period ended March 31, 2017).

Highlights:

• Tangelo generated revenue of $8.99-million for the three-month period ended March 31, 2017, compared with revenue of $10.86-million for the three-month period ended March 31, 2016. The operating loss was $570,000 for the three-month period ended March 31, 2017, compared with $480,000 for the three-month period ended March 31, 2016. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $2.43-million was realized for the three-month period ended March 31, 2017, compared with $3-million for the three-month period ended March 31, 2016.
• In March, 2017, the company was included on the shortlist of nominees in the product innovation, social slots operator, acquisition strategy and slots operator categories for the EGR North America Awards 2017, one of the most significant recognitions in the on-line gaming industry.

                                            FIRST QUARTER FINANCIAL SUMMARY                                                                                   
                                      (in millions except for per-share amounts)   
                                                                                                                  
                                                                             For the three months ended March 31, 
                                                                                          2017               2016 
                                                                                                                  
Revenue                                                                                  $8.99             $10.86 
Adjusted EBITDA                                                                           2.43               3.00 
Transaction costs, severance and restructure costs, depreciation of equipment,                                    
amortization of intangibles, and stock-based compensation                                 3.01               3.48 
Operating (loss)                                                                         (0.57)             (0.48)
Financing and other non-operating expenses                                                                        
Interest and accretion, changes in value of long-term debt, foreign exchange              4.18              (2.04)
(Loss)/income, continuing operations, before income tax                                  (4.75)              1.56 
Net (loss)/income, continuing operations                                                 (4.29)              1.82 
Net income/(loss), discontinued operations                                                0.01              (0.00)
Total net (loss)/income for the period                                                   (4.28)              1.81 
Basic and diluted loss/(income) per share, continuing operations                         (0.02)              0.01 
Basic and diluted income/(loss) per share, discontinued operations                        0.00              (0.00)

James Lanthier, chief executive officer of Tangelo, commented: "In the first quarter of 2017, our revenues experienced an initial dip. Revenues, however, recovered near the end of the quarter and continue to trend positively into the second quarter. Average monthly paying users in the quarter followed a similar seasonal pattern, declining from approximately 59,000 to 56,000.

"While adjusted EBITDA decreased in tandem with revenue due to seasonality, Tangelo continued to enjoy margins, with an adjusted EBITDA margin of 27 per cent due to the operating efficiency gains realized in 2016.

"The company continues to make progress towards the ultimate goal of a transaction that will improve the company's capital structure and benefit all stakeholders. The company will update the market when or if there are material developments."

Vicenc Marti, president of Tangelo, commented: "As part of its ongoing efforts to enhance its product portfolio and accelerate the cadence of new content and pace of migration, Tangelo is fortunate to have added two very experienced product and technology executives in Adalberto Bruno and Eli Atlas. Adalberto brings to Tangelo extremely valuable operating systems experience from Marmalade and Electronic Arts, and Eli is the second senior executive from industry-leading Playtika to join Tangelo after Dvir Ackerman came on board a year ago. I am pleased to lead this all-star team of product and technology experts at Tangelo who will strive to place the company in a unique position to profit from the industry's anticipated growth phase."

By the end of the third quarter of 2017, the company expects to have completed the conversion to Unity of games representing approximately 70 per cent of the revenue of Tangelo Spain. By the end of the fourth quarter, the company expects to release a new mobile-first Mundijuegos app for the Spanish-speaking market that Tangelo has traditionally led in desktop and now expects to continue to lead in mobile. This suite of games, containing games across the slots, bingo and video bingo categories will offer the company's loyal Mundijuegos customers a world-class mobile experience. Additionally, the company expects to release two additional mobile-first apps for the English-speaking market by the end of 2017.

About Tangelo Games Corp.

Tangelo Games, the parent company of Tangelo Israel and Tangelo Spain, is a developer of social and mobile gaming for desktop, iOS and Android platforms. Tangelo Israel and Tangelo Spain design develop and distribute their top-ranked social casino-themed games within on-line social networks (such as Facebook) and mobile platforms (such as Android and iPhone). All of the Tangelo Israel and Tangelo Spain games are free to play and generate revenue primarily through the in-game sale of virtual coins.

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