Mr. Justin Barragan reports

CONTAGIOUS GAMING ANNOUNCES QUARTERLY RESULTS FOR Q1 2015

Contagious Gaming Inc. has released the financial results for the three months ended June 30, 2015.

Subsequent events

Proposed acquisition of Sportech PLC

The company is in discussions with Sportech PLC on a possible business combination that would create a combined, technology-focused, sports-wagering company and a global leader in regulated parimutuel wagering. A proposal has been made to Sportech with respect to the proposed business combination, which the company expects to create significant shareholder value for existing and potential new shareholders of Sportech and Contagious Gaming. The proposed business combination is subject to a number of conditions, including securing appropriate debt and equity financing. There can be no certainty that the submission of the proposal will lead to Contagious Gaming making a formal offer or, in turn, the completion of the business combination.

Sportech is a sports-wagering company listed on the London Stock Exchange. Sportech is composed of three business divisions: (i) Sportech racing and digital, (ii) Sportech venues, and (iii) the football pools. In 2014, Sportech generated revenues of 104 million pounds (approximately $213-million (2)) and adjusted earnings before interest, taxes, depreciation and amortization (1) of 24 million pounds (approximately $49-million (2)) in fiscal year 2014.

(1) Adjusted EBITDA is stated before exceptional costs and share option expense as stated in Sportech's 2014 annual report.

(2) All pounds have been converted to Canadian dollars at a foreign exchange rate of 1 to 2.05.

Extension of development contract with major publisher

In July, 2015, the company signed an extension to one of its third party development contracts with a major social-gaming content publisher. The extension of the contract is for one year for approximately $1-million of services to be provided by the company.

Operational highlights:

• The company continues to progress with the previously announced acquisition of Digitote Ltd. and Digitote Software GmbH Deutschland, a developer and provider of commercial-grade sports-betting and horse-racing technology, hardware and support services to operators across Europe. The definitive acquisition agreement is expected to be signed in September, 2015.
• The company entered into a licence agreement with Manyx Interactive Ltd. to provide the Goal Time software platform within select jurisdictions, including Nigeria and Ghana.
• The company secured an extension to one of the company's major third party development contracts.
• It entered into an affiliate sales agreement with Pronto Games Ltd. to sell, distribute and promote Goal Time to its gaming and sports media network across northern and Eastern Europe and Asia.

First quarter ended June 30, 2015, financial results:

The company generated $209,398 of revenue for the quarter ended June 30, 2015, compared with $323,847 for the comparative quarter ended June 30, 2014. The decrease of 35 per cent is due to lower revenues from third party development contracts.

Adjusted earnings before interest, taxes, depreciation and amortization for the quarter ended June 30, 2015, amounted to a loss of $546,722 compared with adjusted EBITDA of $30,163 for the comparative quarter ended June 30, 2014. The decrease in adjusted EBITDA is primarily due to general and administrative and regulatory compliance costs the company did not incur until completion of the reverse takeover on Sept. 19, 2014, and the decrease in revenues from third party development contracts.

As at June 30, 2015, the company had a cash balance of $2,128,145 compared with $2,641,989 as at March 31, 2015.

                         FINANCIAL HIGHLIGHTS
                                                 Three months ended           
                                          June 30, 2015        June 30, 2014

Revenue                                        $209,398             $323,847
Adjusted EBITDA (loss)                         (546,722)              30,163
Adjusted earnings (loss)                     (1,020,372)              (5,278)
Basic and diluted adjusted                                                  
earnings (loss) per share                         (0.01)               (0.00)

First quarter ended June 30, 2015, interim financial statements and management's discussion and analysis

The company's financial statements, notes to the financial statements, and management discussion and analysis for the three months ended June 30, 2015, are available at SEDAR.

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