Will Vegas go for Cryptologic?

mary

Dormant account
Sting at The Prescription (
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) has an interesting article aobut Cryptologic in which Crypto appears to think that the legalization of Internet gambling in Nevada may mean good news for Cryptologic.

While it's true that Cryptologic is very well regarded in the online community and already has some land-based customers in regulated jurisdictions, I don't think any land operation licensed in Nevada will be using them. Period. Cryptologic, unlike Chartwell, has had an active hand in managing their own casinos and has consistently taken wagers from US citizens, and the Nevada Gaming Control Board is not going to like that for political reasons.

Cryuptologic has a strong balance sheet and may well be an excellent investment. Just don't figure Nevada into those numbers.
 

mary

Dormant account
CryptoLogic Provides Further Detail Regarding Amicable Settlement of New Jersey Civil Action


TORONTO--(BUSINESS WIRE)--May 1, 2002--CryptoLogic(NASDAQ:CRYP)
(TSE:CRY.) In response to investors seeking additional information
regarding this positive development, CryptoLogic Inc., a leading
software supplier to the Internet gaming and e-commerce industries, is
pleased to provide further detail of the settlement between
CryptoLogic and WagerLogic, its wholly-owned subsidiary, and the New
Jersey Divisions of Gaming Enforcement and Consumer Affairs with
respect to the civil action filed on October 16, 2001.

The following is the complete text of the settlement agreement.

WHEREAS, as of the 23rd day of April, 2002, plaintiff, State of
New Jersey and defendants,
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(as domain name only),
Intertainet Overseas Licensing Limited (now known as WagerLogic
Limited), Paris Lenas, Alex Specogna, and CryptoLogic, Inc., having
agreed to amicably settle the litigation styled as State of New Jersey
v.
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, CCMH Ltd., Intertainet Overseas Licensing
Limited, Paris Lenas, Alex Specogna, CryptoLogic, Inc., Docket No.
MER-C-161-01;

NOW, THEREFORE, for and in consideration of the mutual promises,
covenants and detriments contained herein and for other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

1. The following terms shall be defined in the following manner in
this Agreement:

a. "State" refers to the State of New Jersey, the plaintiff
herein.

b. "WagerLogic" refers to WagerLogic, Ltd., the entity formerly
known as Intertainet Overseas Licensing Limited, a defendant in this
action.

c. "Cryptologic" refers to defendant CryptoLogic, Inc.

d. "Lenas" refers to defendant Paris Lenas.

e. "Specogna" refers to defendant Alex Specogna.

f. "Complaint" refers to the Complaint dated October 16, 2001 in
the matter captioned above.

g. "Settling Defendants" refers collectively to
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(as to domain name only), WagerLogic Limited
(formerly Intertainet Overseas Licensing Limited), Paris Lenas, Alex
Specogna and CryptoLogic, Inc.

2. The Settling Defendants acknowledge that the Superior Court of
New Jersey properly has jurisdiction over this matter and further
acknowledge that service of the summons and Complaint upon the
Settling Defendants was proper.

3. CryptoLogic and WagerLogic represent that they do not presently
own or operate any sports betting websites. CryptoLogic and WagerLogic
further represent that they do not license or distribute any sports
betting internet software.

4. WagerLogic and CryptoLogic represent that they have caused the
following entities, which are licensees of WagerLogic, to advise that
they will not accept internet sports betting wagers from persons
located within New Jersey:

a. Caribbean Casino Management Holdings, Limited (websites under
the URLs: intercasino.com; thesands.com; omnicasino.com;
1on1casino.com; 49ercasino.com; and 3-diamonds-online-casino.com);

b. Safari Casino N. V. (safaricasino.com);

c. Fiestacasinos.com N.V. (blackjack.com); and

d. William Hill Casino N.V. (williamhillcasino.com). 6 WagerLogic
and CryptoLogic further represent that they will use their best
efforts to prevent their current customers and/or licensees from
accepting internet sports bets from persons located within New Jersey,
unless and until it becomes legal to do so.

5. WagerLogic and CryptoLogic agree that any licensing or related
agreements they may enter into in the future will contain a provision
prohibiting the licensee or other entity or individual with which
WagerLogic or CryptoLogic contracts, from accepting sports bets from
persons located within New Jersey, unless and until it becomes legal
to do so.

6. By entering into this Agreement, defendants neither make nor
imply any admission as to any liability with respect to any claim
alleged by or on behalf of the State. Defendants do not concede and
expressly deny that they have violated any law, statute, ordinance,
contract, duty or obligation whatsoever. The State agrees not to
prosecute any of the Settling Defendants in connection with any of the
alleged violations set forth in the Complaint.

7. The State represents that it has no other charge, claim or
complaint of any kind pending against the Settling Defendants, or any
of them. The State agrees that it will not bring any action or suit
against the Settling Defendants, or any of them, concerning matters of
the nature alleged in the Complaint, which are generally characterized
as sports wagering transactions, based on any claims which arose prior
to the date of this Agreement. However, any party may bring an action
to enforce this Agreement.

8. The parties agree to execute and file with the Court a
Stipulation of Dismissal with prejudice in the action styled above.
Simultaneously with the execution of this Settlement Agreement, the
State will execute a Stipulation of Dismissal, with prejudice and
without costs, in the form attached hereto as Exhibit A.

9. The parties to this Agreement acknowledge that each party had
counsel and that the Agreement has been mutually negotiated between
the parties and was drafted by the Settling Defendants as a matter of
convenience only. Therefore, no party shall be deemed to be the
drafter of this Agreement if any issue is raised with respect to its
interpretation.

10. This Settlement Agreement contains the entire agreement
between the parties, and supercedes any prior or other agreements,
understandings or communications, written or oral.

11. This Settlement Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original, but all
of which shall constitute one in the same Settlement Agreement.

12. The parties to this Settlement Agreement agree that they shall
execute, acknowledge and deliver any and all other instruments or
documents which are reasonably necessary to effectuate the purposes of
this Settlement Agreement.

13. This Settlement Agreement shall be governed by the laws of the
State of New Jersey.

IN WITNESS WHEREOF, the parties have executed the Settlement

Agreement as of the date set forth above.



DAVID SAMSON, ESQ.

Attorney General of New Jersey

Per: Thomas N. Auriemma, Assistant Attorney General



PARIS LENAS

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(as to domain name only)



PARIS LENAS

WagerLogic, Limited

(formerly Intertainet Overseas Licensing Limited)



PARIS LENAS



ALEX SPECOGNA



JAMES A. RYAN

CryptoLogic, Inc.

CryptoLogic Inc. is the leading software development company
serving the Internet gaming market. The company's proprietary
technologies enable secure, high-speed financial transactions over the
Internet. CryptoLogic continues to innovate and develop state of the
art Internet software applications for both the electronic commerce
and Internet gaming industries. WagerLogic, a wholly-owned subsidiary
of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers around the world.

CryptoLogic's common shares trade on the Toronto Stock Exchange
under symbol the CRY and on the Nasdaq National Market under the
symbol CRYP. There are currently 12.0 million common shares
outstanding (14.4 million shares fully diluted). For more information,
visit
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and
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.

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties including, without limitation, risks associated with the
Company's financial condition and prospects, legal risks associated
with Internet gaming and risks of governmental legislation and
regulation, risks associated with market acceptance and technological
changes, risks associated with dependence on licensees and key
licensees, risks relating to international operations, risks
associated with competition and other risks detailed in the Company's
filings with securities regulatory authorities. These risks may cause
results to differ materially from those projected in the
forward-looking statements.

CONTACT:

CryptoLogic Inc.

Jean Noelting, 416/545-1455

or

James Ryan, 416/545-1455

or

Sean Stokes, 416/545-1455

or

Argyle Rowland

416/968-7311

or

Argyle Rowland

Daniel Tisch, 416/968-7311 ext. 223

dtisch@argylerowland.com

or

Aline Nalbandian, 416/968-7311 ext. 226

aline@argylerowland.com

SOURCE: CryptoLogic Inc.

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05/01/2002 17:30 EASTERN
 

mary

Dormant account
New Licensees, Products Pave Way For European Growth; CryptoLogic Targets 50% Of Licensee Revenue From Non-U.S. Markets By Year-End


TORONTO--(BUSINESS WIRE)--April 30, 2002--CryptoLogic Inc., (NASDAQ:CRYP)(TSE:CRY) a leading software supplier to the Internet gaming and e-commerce industries, is pleased to announce the following licensee- and product-related developments:

-- Ritz Interactive Chooses CryptoLogic Software;

-- Dukes Entertainment Chooses CryptoLogic Software And Enters

Into Preferred Advertising Agreement With FreeLotto;

-- Sports.com Casino Goes Live;

-- Littlewoodscasino.com To Go Live In May; and,

-- New CryptoLogic Bingo Product To Go Live In May.

"CryptoLogic's strategy is to drive profitable growth by focusing on brand-name licensees operating in Tier-one regulated jurisdictions. Right now, this means Europe," said Jean Noelting, CryptoLogic's President and CEO, "and the signing of Ritz Interactive and Dukes Entertainment, the launch of Sports.com and the pending launch of Littlewoodscasino.com are prime examples of this strategy in action. As a result, we expect to return to growth in the second half of the year."

"Our goal is for 50% of licensee revenue to be generated in non-U.S. markets by the end of 2002 through a combination of organic growth and the addition of four top-tier licensees," Noelting said. "I'm very pleased that, within the first half of the year, an already solid base of licensees has been further strengthened through the addition of three highly-regarded organizations which we expect will very quickly make an impact on the European Internet gaming marketplace."

Ritz Interactive Chooses CryptoLogic Software

Ritz Interactive Ltd. has chosen CryptoLogic software to bring The Ritz Club, one of the world's most exclusive privately-owned gaming clubs, on-line.

An exclusive members-only club located in London's historic Ritz Hotel, The Ritz Club appeals to the true connoisseur of luxury and elegance. The Ritz Club's online casino will carry the same cachet, and a highly customized slate of games will mirror those offered to members in the London casino. Roulette, blackjack, punto banco and casino stud poker will all be available any time, online.

Ritz Interactive, a wholly owned subsidiary of The Ritz Club established to pursue online, wireless and interactive television-related gaming activity, was recently awarded one of three online casino licenses in Alderney, a Tier-one regulatory environment with controls on par with those adhered to by land-based casinos.

Dukes Entertainment Chooses CryptoLogic Software And Enters Into Preferred Advertising Agreement With FreeLotto

Dukes Entertainment N.V., through its Dukesgaming.com website, will offer CryptoLogic's full slate of downloadable and Java casino games to players around the globe. Fully regulated and licensed in Curacao, Dukesgaming.com will provide players secure online gaming with a friendly and fun atmosphere. Dukesgaming.com is scheduled for launch in the second quarter.

In support of its international strategy, Dukesgaming.com has entered into a long-term advertising agreement with PlasmaNet, Inc. PlasmaNet operates FreeLotto.com, the leading multilingual sweepstakes provider online. This agreement gives Dukesgaming.com access to FreeLotto.com's 24 million registered and qualified players worldwide. The most trusted sweepstakes site on the web, FreeLotto.com boasts over 5.7 million unique users and 1.6 billion page views per month.

Dukes Entertainment N.V., incorporated in Curacao, Netherlands Antilles, is a wholly-owned subsidiary of The Dukes Partnership, an Isle of Man Partnership.

PlasmaNet, Inc. is a leader in the online data mining and product promotion industry. FreeLotto.com originated the online lottery format sweepstakes, and thus far has awarded over $34 million in prizes, including one $10 million winner and eleven $1 million winners.

Sports.com Casino Goes Live

CryptoLogic is pleased to announce that the Sports.com Casino is now fully-launched and ready for the start of football's World Cup in June.

Sports.com is the first licensee site to initially go live with CryptoLogic's recently launched suite of Java-based casino games. A downloadable casino version is currently in development. Based in Curacao, the Sports.com Casino is fully functional for play and payouts in British pounds sterling.

Sports.com is one of the largest Internet sports brands and sports content providers in the world. Published in five languages, Sports.com has the highest traffic digital network for sports information and betting in Europe with over 4 million audited unique users via the Internet and wireless devices. Regulated and operating in the U.K., Sports.com's sportsbook provides its global users an online sports wagering service as a natural complement to its real-time, live and comprehensive sports coverage.

Sports.com is a primary sports content provider to some of the world's best-known online news sites in the U.K., France, Germany, Spain, Italy and Ireland including Yahoo, AOL, MSN and Lycos, and supplies news and results to more than 30 newspapers in the U.K. Strong financial partners such as Soros Private Equity Partners, IMG, Reuters and Goldman Sachs have supported Sports.com's broad reaching success.

Littlewoodscasino.com To Go Live In May

CryptoLogic is pleased to confirm that software compliance testing is now in its final phase, and that Littlewoodscasino.com will go live on the Isle of Man in May as one of the first Tier-one regulated gaming sites on the Internet.

Littlewoods Leisure is one of the best-known gaming organizations in the U.K., providing football pools, sports betting and lotteries to more than 1.6 million households per week. Littlewoodscasino.com will offer 30 single- and multi-player casino games with British pound sterling play and payouts.

With a highly trusted brand name and large customer base, and the added benefit of operating from the Isle of Man under some of the most stringent regulations currently in place for Internet gaming, Littlewoods has a tremendous opportunity to quickly become a leading player in the rapidly growing Internet gaming marketplace.

Littlewoods Leisure is a wholly-owned subsidiary of Sportech Plc., a U.K. company listed on the London Stock Exchange. Founded in 1923 as Littlewoods Pools, Littlewoods gaming products are distributed via telephone, the Internet, 15,000 retail shops and 13,000 door-to-door collectors.

New CryptoLogic Bingo Product To Go Live In May

CryptoLogic's leading-edge downloadable Bingo product will go live with its first licensee, InterBingo, on May 23, 2002. Discussions with other well-known brand-name licensees are underway.

Emulating the traditional 75-number Bingo game played in Bingo halls around the world, CryptoLogic Bingo offers five play-for-money halls and one play-for fun hall, with themes customizable to the preference of each licensee.

Backed by the Company's proven technological excellence, CryptoLogic Bingo offers all the features of a live bingo hall and more, including a Card Minder option to help players keep track of their card strips, and AutoDab, which allows the computer to dab players' cards for them.

The addition of bingo is the next phase in CryptoLogic's market driven product strategy designed to enable licensees to tap into a wide range of vertical gaming opportunities to create profitable Internet businesses with broad appeal.

About CryptoLogic

CryptoLogic Inc. is the leading software development company serving the Internet gaming market. The company's proprietary technologies enable secure, high-speed financial transactions over the Internet. CryptoLogic continues to innovate and develop state of the art Internet software applications for both the electronic commerce and Internet gaming industries. WagerLogic, a wholly-owned subsidiary of CryptoLogic, is responsible for the licensing of its gaming software and services to customers around the world.

CryptoLogic's common shares trade on the Toronto Stock Exchange under symbol the CRY and on the Nasdaq National Market under the symbol CRYP. There are currently 12.0 million common shares outstanding (14.4 million shares fully diluted). For more information, visit
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and
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.

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that all forward-looking statements involve risks and uncertainties, including without limitation risks associated with the Company's financial condition and prospects, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on licensees and key licensees, risks relating to international operations, risks associated with competition and other risks detailed in the Company's filings with securities regulatory authorities. These risks may cause results to differ materially from those projected in the forward-looking statements.

CONTACT:

CryptoLogic Inc.

Jean Noelting, 416/545-1455

or

James Ryan, 416/545-1455

or

Sean Stokes, 416/545-1455

Fax: 416/545-1454

or

Media Inquiries: Argyle Rowland Worldwide

Daniel Tisch, 416/968-7311, ext. 223

dtisch@argylerowland.com

or

Aline Nalbandian, 416/968-7311, ext. 226

aline@argylerowland.com

SOURCE: CryptoLogic Inc.

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04/30/2002 07:03 EASTERN
 

mary

Dormant account
CryptoLogic Remains Solidly Profitable In First Quarter Of 2002; Profitable Targets Established For Balance Of Year


TORONTO--(BUSINESS WIRE)--April 30, 2002--CryptoLogic Inc.,
(NASDAQ:CRYP) (TSE:CRY) a leading software supplier to the Internet
gaming and e-commerce industries, is pleased to announce financial
results for the first quarter of 2002 and profitable targets for the
balance of the year.

In the quarter ended March 31, 2002, the Company generated net
income of $2.2 million on revenue of $8.7 million. Total cash at the
end of the quarter was $34.4 million.

"CryptoLogic remained solidly profitable and in line with guidance
in what was a transitional quarter for the industry," said Jean
Noelting, President and CEO. "This is a testimony to the strength of
our international business base, and an endorsement of the Company's
strategy to remain focused on growing the business globally in markets
that embrace on-line gaming."

"We continue to maintain that the toughest quarter is behind us,"
Noelting added. "While the impact of the U.S. credit card issue will
continue to be felt, we expect the Sports.com Casino and the launches
of Littlewoods Casino, Ritz Casino, Dukes Casino and our new Bingo
product will help bring about a return to earnings growth in the
second half of the year."

As such, the Company is providing the following updated guidance
for 2002:

Second Quarter 2002 projections:

-- Revenue between $9.5 million and $10.5 million;

-- Net Income between $2.5 million and $3.0 million; and,

-- Diluted EPS between $0.19 and $0.22.

Fiscal 2002 projections:

-- Revenue between $44.0 million and $46.0 million;

-- Net income between $13.5 million and $15.0 million; and,

-- Diluted EPS between $1.01 and $1.12.

Financial Highlights

As expected, first quarter revenue decreased year-over-year to
$8.7 million, compared with $10.9 million in the first quarter of
2001. The decrease was principally due to the decision in the fourth
quarter of 2001 by certain U.S.-based banks to limit the use of their
credit cards for Internet gaming transactions and the resulting delay
in the realization of revenue as U.S. players moved to alternate forms
of payment.

"Lower revenue in the quarter reflects the short-term challenge
being faced by the entire industry as it adjusts to the impact of the
U.S. credit card situation. This pressure was anticipated, and has
been factored in to our projections for the year," Noelting added.
"That said, by the end of the quarter approximately 50% of the revenue
decrease experienced in December 2001 had been recovered."

Net income in the quarter was $2.2 million, or $0.18 per share

($0.16 per diluted share), compared with net income of $5.2 million,
or $0.37 per share ($0.34 per diluted share), in the first quarter of
the prior year. Net margin for the first quarter was 25%.

Net income was affected in part by a 78% decrease in interest
income to $0.2 million from $0.8 million in the first quarter of 2001,
due to lower prevailing interest rates and decreased cash reserves
than in the corresponding period of the previous year.

The Company remained well funded, with $34.4 million in total cash
on the balance sheet at March 31. Significant uses of cash during the
quarter included the utilization of both Substantial and Normal Course
Issuer Bids to buy back common shares as a means of enhancing
shareholder value, and an investment in Sports.com to further the
Company's international growth strategy.

Under the Substantial Issuer Bid that expired on January 11, 2002,
the Company repurchased 1,004,934 common shares at a total cost of
$17.8 million, including fees. CryptoLogic also continued to make use
of its Normal Course Issuer Bid, which expires on May 17, 2002,
repurchasing 165,500 common shares during the quarter at a cost of
approximately $2.0 million. The Company intends to renew its Normal
Course Issuer Bid for the May 2002-May 2003 period.

In February, the Company expanded its presence in the European
market by securing a long-term licensing and purchase option agreement
with Sports.com, Europe's leading digital sports channel, through an
investment of approximately $6.0 million. With over 4.0 million unique
audited users of its sports content and U.K.-regulated sports wagering
services per month, Sports.com boasts tremendous European coverage.
The Sports.com Casino is the first licensee site to initially go live
with CryptoLogic's suite of Java casino games, launched in February.

Outlook

Despite the short-term impact of the U.S. credit card situation,
Management is confident in its projections for 2002, in the long-term
vitality of the Internet gaming industry and in the fundamental
strength of the Company and its business model. The Company remains
focused on profitable growth by expanding its presence worldwide,
primarily in Europe and Asia, with brand-name licensees; by remaining
a leader in regulatory compliance; and, by adding products through
development or acquisition to drive organic growth of licensee sites
and enter new vertical gaming markets.

The above forward-looking statements are based on the Company's
current expectations, and are subject to risks and uncertainties.
Actual results may differ materially.

Conference Call and Webcast

A conference call and webcast to discuss these results and the
Company's outlook will be held at 8:30 a.m. Toronto time on Tuesday
April 30, 2002. Interested parties should call 416-695-5801 or
1-800-478-9326, or visit
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and click on Investor
Info. A replay of the call can be accessed by calling 416-695-5800 or
1-800-408-3053 and entering passcode 1135626, or at
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.

About CryptoLogic

CryptoLogic Inc. is the leading software development company
serving the Internet gaming market. The company's proprietary
technologies enable secure, high-speed financial transactions over the
Internet. CryptoLogic continues to innovate and develop state of the
art Internet software applications for both the electronic commerce
and Internet gaming industries. WagerLogic, a wholly owned subsidiary
of CryptoLogic, is responsible for the licensing of its gaming
software and services to customers around the world.

CryptoLogic's common shares trade on the Toronto Stock Exchange
under symbol the CRY and on the Nasdaq National Market under the
symbol CRYP. There are currently 12.0 million common shares
outstanding (14.4 million shares diluted). For more information, visit
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and
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.

CRYPTOLOGIC FORWARD LOOKING STATEMENT DISCLAIMER:

Statements in this press release which are not historical are
forward-looking statements made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Investors are
cautioned that all forward-looking statements involve risks and
uncertainties, including without limitation risks associated with the
Company's financial condition and prospects, legal risks associated
with Internet gaming and risks of governmental legislation and
regulation, risks associated with market acceptance and technological
changes, risks associated with dependence on licensees and key
licensees, risks relating to international operations, risks
associated with competition and other risks detailed in the Company's
filings with securities regulatory authorities. These risks may cause
results to differ materially from those projected in the
forward-looking statements.

CRYPTOLOGIC INC.

CONSOLIDATED BALANCE SHEETS

(In thousands of U.S. Dollars)

(Unaudited)

As at As at

March 31, 2002 December 31, 2001

ASSETS



Current assets:

Cash and cash equivalents $ 19,815 $ 42,822

Restricted cash 14,540 16,800

Reserve with processors 981 144

Accounts receivable 1,658 697

Income taxes recoverable - 408

Prepaid expenses and other 1,212 768

--------- ---------

38,206 61,639



Investments 8,413 2,480



Capital assets 3,063 2,949



Intangible assets 310 337



Goodwill 1,040 1,040



--------- ---------

$ 51,032 $ 68,445

--------- ---------

--------- ---------



LIABILITIES AND

SHAREHOLDERS' EQUITY



Current liabilities:

Accounts payable $ 2,038 $ 2,704

Accrued liabilities 1,119 1,389

Income taxes payable 98 -

Funds held on deposit 4,043 3,263

--------- ---------

7,298 7,356

--------- ---------



Shareholders' Equity:

Capital stock 8,590 8,720

Retained earnings 35,144 52,369

--------- ---------

43,734 61,089

--------- ---------

$ 51,032 $ 68,445

--------- ---------

--------- ---------





CRYPTOLOGIC INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands of U.S. Dollars)

(Unaudited)

For the three months ended

-----------------------------------

March 31, 2002 March 31, 2001



Revenue $ 8,664 $ 10,865

--------- ---------



Expenses

Software development and support 4,791 4,963

General and administrative 1,224 783

Finance 137 75

Amortization 197 63

--------- ---------

6,349 5,884

--------- ---------



Income from operations 2,315 4,981



Interest income 175 790

--------- ---------



Net income before taxes 2,490 5,771



Provision for income taxes 286 589

--------- ---------



Net income $ 2,204 $ 5,182

--------- ---------

--------- ---------



Earnings per share

Basic $ 0.18 $ 0.37

Diluted $ 0.16 $ 0.34



Weighted Average Number of

Shares ('000s)

Basic 12,210 14,038

Diluted 13,569 15,252





Cryptologic Inc.

Consolidated Statements of Changes in Shareholders' Equity

(In thousands of U.S. Dollars)

(Unaudited)

Three Months Ended Three Months Ended

March 31, 2002 March 31, 2001

------------------------------------------

Number of Stated Number of Stated

Shares Value Shares Value

('000s) ($) ('000s) ($)

Common shares:

Balance, beginning

of period 13,137 8,448 14,079 6,455

Repurchase of shares (1,170) (367) (119) (40)

Exercise of stock

options 25 237 87 420

------------------ ------------------

11,992 8,318 14,047 6,835

------------------ ------------------

Series c warrants:

Balance, beginning

of period - - 160 22

------------------ ------------------

Balance, end of

period - - 160 22



Series f warrants:

Balance, beginning

of period 30 272 - -

------------------ ------------------

Balance, end of

period 30 272 - -

------------------ ------------------



Total capital stock 12,022 8,590 14,207 6,857

------------------ ------------------





Retained earnings,

beginning of period 52,369 51,133

Net income 2,204 5,182

Excess of purchase price

of treasury shares

over stated value (19,429) (1,175)

--------- ---------

Retained earnings, end

of period 35,144 55,140

--------- ---------



Total shareholders'

equity 43,734 61,997

--------- ---------

--------- ---------





Cryptologic Inc.

Statement of Cash Flows

(In thousands of U.S. Dollars)

(Unaudited)

Three Months Ended

March 31, 2002 March 31, 2001

-----------------------------------

Cash provided by (used in):



Operating activities:

Net income $ 2,204 $ 5,182

Adjustments to reconcile

income to

Cash provided by (used in)

operating activities:

Amortization 197 63

Changes in operating

assets and liabilities:

Restricted cash 2,260 (500)

Reserves with processors (837) (206)

Accounts receivable (961) 979

Prepaid expenses and other (444) (380)

Income taxes 506 625

Accounts payable (666) (616)

Accrued liabilities (270) 207

Funds held on deposit 780 395

--------- ---------

2,769 5,749

--------- ---------





Financing activities:

Issue of capital stock for

cash 237 420

Repurchase of common

shares (19,796) (1,215)

--------- ---------

(19,559) (795)

--------- ---------





Investing activities:

Additions to capital

assets (284) (65)

Investments (5,933) (921)



--------- ---------

(6,217) (986)

--------- ---------



Increase in cash and cash

equivalents (23,007) 3,968



Cash and cash equivalents,

beginning of period 42,822 42,696

--------- ---------



Cash and cash equivalents,

end of period $ 19,815 $ 46,664

--------- ---------

--------- ---------



NOTES TO CONSOLIDATED INTERIM FINANCIAL STATEMENTS

As at March 31, 2002

(Unaudited)

Inc. ("the Company") have been prepared in accordance with Canadian
generally accepted accounting principles using the same accounting
policies as were used for the consolidated financial statements for
the year ended December 31, 2001, except as described below in a
change in accounting policy (note 1). These consolidated interim
financial statements should be read in conjunction with the
consolidated financial statements for the year ended December 31,
2001, as set out in the 2001 Annual Report.

1. Change in Accounting Policy

Effective January 1, 2002, the Company adopted the new
Recommendations of the Canadian Institute of Chartered Accountants
with respect to the accounting for stock-based compensation and other
stock-based payments. The new Recommendations are applied
prospectively to all stock-based payments to non-employees, and to
employee awards that are direct awards of stock, call for settlement
in cash or other assets, or are stock appreciation rights that call
for settlement by the issuance of equity instruments, granted on or
after January 1, 2002. Outstanding grants as at January 1, 2002 that
call for settlement in cash or other assets or stock appreciation
rights that call for settlement in equity instruments are applied
retroactively, without restatement. The Company does not have any such
grants as at January 1, 2002 and as such will apply the new
recommendations prospectively.

In accordance with the new standard, the Company will continue its
existing policy that no compensation cost is recorded on the grant of
stock options to employees. Consideration paid by employees on the
exercise of stock options is recorded as share capital. However, under
the new standard the Company is required to provide additional pro
forma disclosures for options granted to employees as if the fair
value based accounting method had been used to account for employee
stock options.

The fair value of the options granted were made using the
Black-Scholes option pricing model using a dividend yield of 0% and
the following weighted assumptions.

Risk-free rate 2.0%

Expected volatility 100.0%

Expected life of options in years 5.0

of the employee stock option awards granted on or after January 1,
2002, in accordance with the new recommendations, the Company's net
income and earnings per share would have been changed to the following
amounts:

As reported Pro forma

('000) ('000)

Net income $ 2,204 $ 2,134



Net income per share

Basic $ 0.18 $ 0.18

Diluted $ 0.16 $ 0.16

In February 2002 the company acquired an option to purchase 100%
of the shares of SCG Enterprises Limited (SCGE) an Internet gaming
operator, for $5,933,000. The exercise price for the shares is 1 Pound
Sterling, and the option expires February 2005.

3. Substantial Issuer Bid

On January 11, 2002 the Company purchased 1,004,934 CryptoLogic
common shares at a price of CDN$28.00 per share for a total cost,
including transaction costs, of CDN$28,353,000 (US$17,763,000).

4. Normal Course Issuer Bid

In May 2001, the Board of Directors approved the repurchase and
cancellation of up to 656,000 of the Company's outstanding common
shares for the period commencing May 18, 2001 and ending May 17, 2002.
As at March 31, 2002, the Company under this plan has cumulatively
repurchased and cancelled 440,500 common shares, of which 165,500
common shares were repurchased and canceled during the period January
1, 2002 to March 31, 2002 at a cost of $2,033,000.

5. Contingencies

The Company has been named in several lawsuits incurred in the
ordinary course of business. In the opinion of Management, the claims
are without merit and no provision has been made in the accounts.

6. Subsequent Events

On April 8, 2002, the Company sold 100% of its investment in Dot
Com Entertainment Group Inc. (DCEG-OTCBB), representing 1,055,700
common shares for $1,056,000.

CONTACT:

CryptoLogic Inc.

Jean Noelting, 416/545-1455

or

James Ryan, 416/545-1455

or

Sean Stokes, 416/545-1455

Fax: 416/545-1454

or

Media Inquiries: Argyle Rowland Worldwide

Daniel Tisch, 416/968-7311, ext. 223

dtisch@argylerowland.com

or

Aline Nalbandian, 416/968-7311, ext. 226

aline@argylerowland.com

SOURCE: CryptoLogic Inc.

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04/30/2002 07:03 EASTERN
 
T

tjoe

Guest
So is it alright to play at Dukesgaming? Has anyone ever complained about them. The casino seems to have all in order. Even a phone number!
It advertises it's software.
Forgive me but I am a little gun shy now. I had a bad experience.
So does anyone out there have an opinion?
 
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