Bingo.com Ltd has released its preliminary unaudited financial results for the first quart ending on 31st March 2011. The results showed a significant increase in revenues on the last quarter and monthly player activity. A large loss for the quarter was reported following large scale marketing activities and cash reserves dropped

Highlights included:

• First quarter revenue of $247,044, an increase of 123% from revenue of $110,884 in the fourth quarter of 2010.

• A 95% increase in total monthly active customers in the first quarter of 2011 from the fourth quarter of 2010.

• Completed cost reduction restructuring program of the Bingo.com organization

• Launch of television marketing campaign

• A net loss for the period of $743,332, more than double than at the same period last year ($344,806)

• Cash of $839,635 and positive working capital of $988,249 at March 31, 2011 compared to cash of $1,396,384 and positive working capital of $1,723,394 at December 31, 2010.

"The first quarter of 2011 marks two milestones with the launch of our new marketing initiatives and the completion of our restructuring efforts," claimed Tarrnie Williams, Bingo.com's CEO. "I'm pleased to see our increased revenue and an increase in the total monthly active players, although the results have come at a significant cost. We invested heavily into marketing placements in the first quarter and the response from our target market has been extremely positive. However, given the large size of our investment, we believe it will take many months before the full benefits of the campaign are realized and returns secured. We continue to support the marketing in target jurisdictions with lower intensity. Bingo.com has recorded a significant loss in the first quarter of 2011. This is primarily a result of the high marketing costs and large one-time charges stemming from our restructuring efforts which are now complete. The remaining future costs of Bingo.com are now focused on the marketing function of the organization as we invest to generate increasing amounts of targeted traffic to build a large base of valuable customers."

For the period ending 31st March 2011

• Total revenue was $247,044, an increase of 123% from revenue of $110,884 in the fourth quarter of 2010 and a decrease of 80% from revenue of $1,254,792 for first quarter of 2010

• Gaming Revenue was $231,177, a 148% increase from revenue of $93,128 in the fourth quarter of 2010 and a decrease of 81% compared Gaming Revenue of $1,209,269 in the first quarter of 2010

The increase in revenue compared to the fourth quarter of fiscal 2010, is the result of the television marketing campaign which was launched in the first quarter of 2011. The decrease compared to the first quarter of fiscal 2010 is due to the migration during the second quarter of fiscal 2010 of our players to the Unibet's Partner Program and a second change in platform within six months.

• Revenues from advertising came in at $15,867, a decrease of 11% from advertising revenue of $17,756 in the fourth quarter of 2010, and a decrease of 65% from advertising revenue of $45,523 in the first quarter of 2010.

• Operating costs before interest, and depreciation expenses, including sales and marketing and general and administrative expenses increased to $987,749 in the first quarter of 2011, an increase of 36% over operating expenses of $719,373 mainly as a result of the television marketing campaign and restructuring costs.