Applied Gaming Solutions Signs Agreement With New York-Based Corporate Finance Group.

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 9, 1999--

(CDNX:AGC.)

Applied Gaming Solutions of Canada Inc. (AGS) has entered into an agreement with Berkshire Funding of New York and its affiliated companies, which includes Eagle Fidelity Gold Inc.

Under the terms of the agreement, Berkshire will assist AGS in the development of funding strategies for the continued expansion of the lottery program in Vietnam and other online lottery opportunities worldwide.

Berkshire's primary experience is working with U.S.-based companies, some of which are NASDAQ related. They also have a successful record of assisting Canadian companies as well. They typically develop "yield enhancement contracts," "debt service reserve collateralisation structures" and "inverse floater yield enhancement instruments," which assist corporations to secure U.S.-based financing for their projects.

Berkshire funding has perfected a number of structures that replace traditional debt services with equity participation; in certain transactions this could be convertible preferred stock, or a conversion into common stock at an exit formula, such that the investor receives a premium to interest dollars, while at the same time, a protected, enhanced or even guaranteed return of principal at a future date. The agreement provides for Berkshire to explore a number of key strategic options in the U.S. financial markets

"The addition of a New York-based funding organization is key to our long-term strategic direction, with both Trinity capital of Toronto and Berkshire Funding of New York in place, Applied Gaming now has representation in all the major North American financial markets," said David Aftergood, President and CEO of Applied Gaming Solutions of Canada Inc.

Applied Gaming Solutions of Canada Inc. is a leader in providing comprehensive, integrated online lottery products around the world. AGS currently provides technical support for the online lottery system run by the Construction Lottery of the Capital-Hanoi in Vietnam. AGS is also licensed in the Canadian provinces of Ontario, Alberta and Saskatchewan with several other licenses pending. Due to the recent merger of The Alberta Stock Exchange into The Canadian Venture Exchange, AGS common shares now trade on The Canadian Venture Exchange under the ticker AGC.V or V.AGC.

For further information, please visit our website at: www.ags.ca

SEC 12g exemption: 82-4832

The Canadian Venture Exchange has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

This release contains forward-looking statements within the meaning of the United States Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of the Company, or industry results to differ materially from those reflected in the forward-looking statements. Forward-looking statements are based on the current expectations, projections and opinions of the Company's management, and the Company undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made, for example to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.