VirtGame Receives Recommendation of Approval by Nevada Gaming Control Board as Manufacturer and Distributor in Nevada

Business Wire, April 8, 2004

Business Editors

LAS VEGAS--(BUSINESS WIRE)--April 8, 2004

VirtGame Corp. (OTC BB:VGTI.OB - News), a provider of innovative server-based software solutions to the regulated gaming and lottery industries, announced today that on April 7, 2004 it received a recommendation of approval from the State of Nevada Gaming Control Board for an nonrestricted gaming license without time limitations as a manufacturer and distributor in that state.

In October 2002 VirtGame had received a conditional manufacturer and distributor gaming license from Nevada Gaming Commission which was limited to 18 months and was subject to review in April 2004. In accordance with Nevada laws and licensing process, the recommendation of approval by the Nevada Gaming Control Board will be received and voted upon by the Nevada Gaming Commission later this month.

"We are pleased to receive the recommendation of approval by the Nevada Gaming Control Board and look forward to our hearing with the Nevada Gaming Commission on April 22, 2004. Our gaming license is an important element in VirtGame's overall business strategy," said Bruce Merati, VirtGame's CEO.

VirtGame has developed and has applied for regulatory approvals for a proprietary server-based software gaming platform which is based on open technology, i.e. uses commodity computer and hardware and software applications developed by Microsoft, Sun Microsystems Java, Macromedia Flash and streaming technologies. VirtGame's secure and technologically advanced gaming platform architecture distributes gaming applications such as games of chance, various types of race and sports wagers and instant lottery applications from a central server. VirtGame's platform enables casinos to offer these games within the casino floor or remotely via kiosks to other licensed locations as well as providing home wagering via secure closed-loop systems or other private networks.

About VirtGame Corp.

VirtGame Corp. is a provider of innovative server-based networked gaming software solutions to the Gaming and Lottery industries. The Company has built the VirtGame SP(TM), a comprehensive, scalable and customizable gaming platform. VirtGame's server-based products, when used in combination, and individually, create greater efficiencies, reduce costs, and increase revenues for regulated casinos and lottery operations. For more information, please visit www.virtgame.com or contact Bruce Merati at (858) 373-5001.

Safe Harbor Statement

The statements contained in this press release that are not historical are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements, without limitation, regarding our expectations, beliefs, intentions or strategies regarding the future. We intend that such forward-looking statements be subject to the safe-harbor provided by the Private Securities Litigation Reform Act of 1995. Such forward-looking statements relate to, among other things: (1) expected revenue and earnings growth; (2) estimates regarding the size and our penetration of target markets; (3) adequacy of available working capital. These statements are qualified by important factors that could cause our actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) our receipt of adequate working capital as required, (2) our auditors' qualification of their report on our financial statements as to doubts about our going concern, (3) the early stage of development of the market for software for the regulated gaming industry, (4) lack of market acceptance to date for the Company's products and services, (5) our receipt of nominal revenues to date, (6) our continuing losses from operations to date, and (7) federal and state regulation of our business. These forward-looking statements are made as of the date of this release, and the company assumes no obligation to update such forward-looking statements. Refer to the company's Form 10-KSB for the year ended December 31, 2002 filed with the Securities and Exchange Commission for more information, as well as, other filings including the company's Form 10-QSB quarterly reports.