Wednesday Jan 27th, 2010

Dear Customer,

2010 is shaping up to be an exciting year for us here at CyberArts. We made significant improvements in 2009, and are continuing to move ahead with our enterprise class software. We're excited to be adding improvements and features that we know will enhance your experience as one of our valued customers.

Below is a brief overview of what we've accomplished in the fourth quarter of 2009, as well as what we're working on for the first quarter of this year.

Foundation Platform:

For your customers, we've added support for:

• Friend searching: Allows a player to search for friends. Supported via API or custom UI.
• Expanded support for 64-bit datatypes: Such technology allows for very large numbers of player tournaments and extremely large bet amounts and chips sizes. Bets can now be in the BILLIONS, which is useful for high roller free play.

These features can be activated with a straightforward update to your skin. Please contact CyberArts for a professional services bid if you are interested in activating any or all of the above features.

Several important changes are scheduled for completion in the next few months. Of note:

• Graphical player notes: Visual labels that a player can use to easily identify other players. For example, a shark fin to identify a shark, or a halo over an avatar to identify a friendly player. This feature is only limited by your imagination and creativity.
• Scalability improvements: We've successfully tested 5,000 and 10,000 simultaneous player tournaments, and are currently running 25,000 simultaneous player tournaments in QA, with the goal of running 125,000 simultaneous player tournament by the end of 2010.

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Foundation Poker:

Our world-class poker software continues to improve. We've added support for:

• Ghost cards: The ability for a player to view folded cards as the hand progresses.

Again, new features can be activated with an update to your skin. Please contact CyberArts for a professional services bid if you are interested in activating any new features.

Several important changes to poker are scheduled for completion in the next few months, to allow your poker game to remain best-of-breed. We want to "play our cards close to the vest" on this topic. But rest assured, we'll provide more information on new features in the coming months.

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Win32 Client:

We have several new features available for the new Win32 Client, including:

• Automatic in-client update.
• URL-based image support, through a web server or content delivery network such as Akamai.
• Non-rectangular, transparent image support, which allows you to use arbitrarily shaped graphics, such as avatars with rounded edges or transparency.
• Ability to stretch, skew and rotate images and animations.

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Flash 2.0 Client:

We're preparing to release our Flash 2.0 Client in the first quarter of 2010. The new client brings reliability and performance improvements, new features and bug fixes.

On the reliability and performance front, we've made several changes that enhance the integrity of the connection between the client and server. The client now loads and renders large numbers of objects more efficiently.

We've added support for loading images in the client using an external URL, with support for using non-rectangular and transparent images.

Finally, we've made fixes that improve the accuracy of the clock control, rendering of animation, and drag and drop support.

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Admin:

In the past few months, we've added several new features to Admin, including:

• Prohibited player pairs.
• Global chat management.
• New tournament scheduling overrides and options.

We've also added numerous under-the-hood fixes that improve the Admin user experience.

Look for additional improvements to Foundation Admin coming your way soon!

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New Games:

Last, and certainly not least, are the new games we've finished and plan to release in the first quarter of this year.

Foundation Bingo is available now! We're also building our portfolio of casino games with Lucky Dice and Roulette. Here is a quick run down of each of these games:

Bingo provides players and operators with a great set of features. Operators can choose from a near-unlimited assortment of game backgrounds, leverage flexible scheduling features, and develop a rich social environment with the use of various tools, such as the comprehensive chat manager. Foundation Bingo also supports side games, a feature that keeps players engaged and generates additional revenue.

Lucky Dice is a fun and easy game to play, ideal for targeting new customers. Two dice are shaken in a cup and thrown on the table. The object of the game is to predict the outcome of a dice roll. Predictions can be very general or very specific. Winnings are based on the risk of the prediction.

Roulette is a classic casino game that attracts players of every caliber. As in the casino, a ball is spun in the opposite direction of the wheel, until it comes to rest in one of the 37 possible positions. Players can bet on an odd number, even number, specific number, color, etc.

In addition, we're expanding our Asian games suite. Baccarat and Fight the Landlord are available now, and Big 2 and Chinese Poker/13 Cards will be ready by the end of Q1. Here is a brief description of each of these games:

• Baccarat is the most popular table game in Asia. It is similar in spirit to blackjack. Players make bets of three kinds: either that the "Player" or "Bank" hand wins, or that the two hands tie. Players can play alone, or amongst others, at the table.
• Fight the Landlord is a traditional Asian card game that is played with a standard deck plus two distinct jokers (Red and Black). A team of Farmers (Bandits) play against the Landlord (Cop). Two special hands, Bombs and Rockets, may be played at any time, and have the effect of doubling the game stake.
• Big 2 is wildly popular in East and Southeast Asia, and is gaining popularity in the Western gaming world. It is a climbing game, where players make laydowns in turn, in an attempt to rid themselves of all their cards. Laydowns must be in ascending order, according to a hand-ranking system similar to that of poker.
• Chinese Poker/13 Cards is another game that is ideal for acquiring new customers. The hand-ranking system is similar to that of poker. Luck is a big element, but ultimately, strategy supersedes. This mix of chance and skill appeals to both beginners and seasoned players.

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We hope this newsletter finds you well. Please contact us if you have any questions.

Best regards,

Mike Reaves
SVP Products & Services
mreaves@cyberarts.com