About Electronic Game Card. Inc.

Electronic Game Card Inc., (EGMI) , develops, produces and markets the proprietary technology that is the "Electronic GameCard" which can be programmed to suit a variety of gaming and promotion applications. EGC's client base is across the $ 100 billion global market of state and national lotteries, Gaming and Casinos, Indian Gaming and the expanding sales promotion and incentive markets. EGC develops sales and marketing relationships with agents globally and has a joint venture with a major lottery focused US listed corporation which has purchased 10% of the EGC common equity stock.

July 2005, the Public Gaming Research Institute (PGRI) named the Electronic GameCard(TM) as a 2005 Lottery Product of the Year during its conference in Las Vegas. The PGRI award recognizes the importance of new products to the growth and continuing success of worldwide lotteries

************** Recent Quarterly Report **********************

The company has recorded $ 201,172 of revenues this quarter and $353,317 for the year to date. Sales and Marketing costs were $30,642 compared with $96,609 in the comparable period for 2005. This reflects a reduction in attendance at trade shows and events during the period. General and Administration expenses were $246,880 compared with $258,578 for the same period in 2005. This expense was lower than the comparable period as we continued to make economies during the period. Consultancy costs were lower at $128,375 compared with $208,000 in the previous year due to expenditure incurred in the prior period to resolve some quality control problems in the production process. Salaries and payroll costs were $ 91,325 compared with $155,264 in 2005 there were less employees in the period. Operating loss increased to $1,907,067 compared with $824,058 for the comparable period due to interest and finance charges related to the fund raising in April 2005 which were $1,416,322 higher than the comparable period. Operating losses excluding the interest charges were $495,220 compared to $718,451 in the comparable period of 2005.

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Company has hit the mark with its smart card. State lotteries are starting to buy it up with continued orders. The technicals look good, the news looks good and the product seems to make sense. Its well worth throwing a few dollars at this one IMO!

I couldn't find up to date financial data on this company... nothing since DEC 05 on yahoo... can you give me a link to where I can view the reports???...

Sorry, I look at technical charts and stated news and SEC filings (When they exist). I look for stock dilution as the enemy more then company finances. If I use fundimentals then I would be talking about big board companies. Quality stocks for example: INTC, VLO, GE that I also believe in. Since these are PK and BB stocks I feel that is not the governing factor?  I have made alot of money on these due to the "perception" that they have something not the reality. In fact  most high volume trading occurs on these stock are due to just that.  Most if not all of these companies when they reach reality, then its too late already! JMHO

I agree with most of the points you made... BB and PK stocks do have a lot more to do with speculation than anything, but I find the best comapnies are the ones who have financial documents available... I've seen some quite financially solid stocks on the OCTBB...

I guess it's all risk and reward... If I did invest, which I don't (for some god knows why reason) I wouldn't have a problem investing in OCTBB stocks, but without financials I'd stay away... but thats the accountant in me showing lol

Well the stocks chart is getting real weak here breaking down in RSI,SS,hitting the lower BB etc... If news does not come out soon then I will start getting a little worried. This could be a great entry point or signs of some adverse fundimental changes in the company. I can't believe with re-occuring sales that some news of the sort would not be coming out soon? This is the waiting time that I hate. To see if these cards will be expanded to other states and reorders will continue, if only I had that crystal ball????

I think next leg up will take us into the .50-.55 zone. Chart looks very interesting. Im watching closely on tuesday for entry opportunity.

EGMI - Electronic Game Card
Finance .Yahoo.Com - Company info

http://finance.yahoo.com/q?s=EGMI.OB

Read the latest history on this one for the past few months.  They are producing revenue and have recently signed agreements that demonstrate their products have appeal to the gaming industry.

More importantly they have significant room to expand as the word gets out.  They have a product and it is selling.

Bill

I have 4000 shares and have a limit order for 1600 shares this morning.  Wish I had additional money to buy more - dog!  

Guess I'll have to wait until some divs come in.

Don't want to sell my other stocks - they're good too.

A few of the headlines indicate that sales are expected to occur, as a result of signed agreements, in Q3 06.

I'm expecting to see higher revenue and earning for EOQ Q3 and EOY 06 as a result of their efforts.  If this materializes as expected there will be momentum moving into Q1 07 that will build on the signed agreements from Q3 06.

What better way to promote your products than with signed agreements and renewal orders for your product.  The lotteries are certainly looking to expand the consumer's game playing experience.

Bill

2003 EGMI Prediction - proves successful

Lorne Weil, chairman and CEO of Scientific Games Corp., said he believes that electronic game cards represent a novel way to spark sales of instant games.
“We are confident this product will appeal to progressive lotteries seeking to
introduce electronic digital instant tickets,” he said.

For a complete extract from the journal see the attachment.

The extract appears in the October 2004, Public Gaming International Journal.

Source: http://lib.store.yahoo.net/lib.....inancial%20Trends%22

Lottery Orders and Value to EGMI and Lotteries since 2004

Orders        Cost/Card   Revenue
929,000      $20.00        $18,580,000.00

                ********** Charting Observations ************

     Notice that though the stock has backed off of late when looking at technicals, there is a clear bi-monthly pattern showing up. This could be very significant if it relates to sales of reorders. If this continues as a predictible pattern then we will see significant upside again in Oct! This pattern started in April when it seems like the company had turned its fortunes around.

     Also the RSI has penetrated the 50 trendline twice since then. The first time there was significant upside that followed. I don't think there will be anything stopping it from happening again.

      The lack of news may only be a reflection of the "end of summer" effect. That may have slowed sales but will surely increase into the Fall with forthcoming news of reorders and hopefully more states added on to the roster! The longer negative drag of the ROC (14 days as opposed to 7 last time) may signify this end of summer effect but again should turn positive by Oct 1.
   *** I think its important to note that when the ROC (daily interval) does go positive then we could be running up again! That may be the switch to turn it on!

   One more thing, Over the next several month look for any signs of growth in the news other then reorders such as new products, new state lottery orders or even casino contracts or this stock may be heading for trouble!  JMHO    

With the recent signing of the Indian Casinos I think this is a momentum play that will continue.

Other Indian Casinos will see this as an opportunity and will buy into the game cards as well.

Still a buyer of EGMI.

- Bill

Bill,

I emailed Roger Holdom@electronicgamecard.com and got this response to the no news issue/lower share price, Let me know what this means to you,

Hi Claus,

We are aware if the situation and are working hard to create appropriate stories. However as supplier our customers retain the right to privacy for their own commercial reason.

However be assured as soon as we have a story we will maximising the visibility to the investment community.

Best wishes

Roger

After trying to press Roger further for clearer information on the privacy issue, I recieved the following: (Note that his response was within hours of my sending the questions)

Dear Claus,

Thanks for your note and I empathise with your frustration.

Within any sales contract the purchaser has the right to control any publicity around the agreement to purchase a product . This is commercially logical. We have Iowa and Kansas State Lotteries and all the news they want to release is in the public domain. When they re-order we make announcement as we did with Kansas also when they go on sale with a new GameCard as we did with the Iowa Lottery and the Pocket Poker GameCard.

When a new state wishes to announce that it has signed a contract to purchase GameCards we will ensure that we optimise this news. However it would not make sense to announce the interest from purchaser if that publicity was to have a negative impact on the possibility of a sales contract.

With regard to Indian Casinos your thoughts are logical. However the knee Jerk reaction of any Casino is to say NO to publicity until they want it. That is the usual strategy of their PR advisers.

The issue of time lag with the casinos is that the release for say Santa Ana was an order agreed release, now we have to manufacture and deliver. Then wait for the promotion to run in the forth quarter. Again this is the issue of fitting PR to their commercial strategy and we then have to fit that into out investor relations programme.

As soon as we are allowed to release news we would be happy to release this but the purchaser is in control on this.

I hope that information is of assistance.

Best wishes,

Roger

While a little dated, this PR Newsrelease provides insight into their global potential both domestic and foreign.  Possibly a sign of good things to come.

- Bill

***********************************************************

Electronic Game Card Demonstrates Positive Sales Trend
- PR Newswire

NEW YORK and LONDON, August 3, 2006 /PRNewswire-FirstCall via COMTEX/ -- Electronic Game Card, Inc. , the creator of the Electronic GameCard, has provided a six month update of its business activity, including milestones achieved subsequent to the update issued January 31, 2006.

Electronic Game Card ("EGMI") has entered a highly productive period, which was highlighted by its joint venture partner, Scientific Games Corporation , who markets and promotes the Electronic GameCard to the global lottery market. Steve Saferin, Scientific Games Properties' president, recently commented, "Both Kansas and Iowa have proven that the Electronic GameCard is the kind of innovative game that will catapult lotteries everywhere into the next generation of game play. The Electronic GameCard is a pioneering product for a pioneering lottery industry." This success of the Electronic GameCard has been demonstrated in several markets sectors and is receiving global interest.

In the United States:

- Kansas Lottery - After just 5 weeks of sales, Kansas Lottery placed a full second order for Electronic GameCards on July 21, 2006.

- Iowa Lottery released its third order of Electronic GameCards on July 31, 2006.

- Iowa also confirmed that they are the first State to launch the brand new Pocket Poker Electronic GameCard product.

- EGMI has manufactured and completed delivery of over 350,000 Electronic GameCards to the State Lotteries in the US.

- Golden Palace.com - an order of customized code-breaker Electronic GameCards was delivered to Golden Palace.com for its promotion campaign.

- MGM Grand Detroit - EGMI received its first Electronic GameCard order from a casino, MGM Grand, on July 6, 2006.

- Santa Ana Star Casino (New Mexico) - EGMI signed a contract with Santa Ana Casinos on July 26, marking its first contract with the Indian Gaming community.

- New Initiative - North American charity bingo with initial focus on Texas - subject to approval by State regulators.

- EGMI has developed several additional games to extend its appeal to a diverse group of interests.

In Europe:

- Talarius - the UK's leading slot hall operator, and PromoCom, the direct mail/premium rate promotion company in Ireland, have both successfully received completed shipments.

- EGMI remains on target to complete an order with a major online-casino company operating in Europe within the next quarter.

- EGMI has signed an order for a charity promotion in Norway. Order to be delivered by third quarter.

- EGMI has secured an agreement to work on a charity lottery in Sweden subject to final approval from the regulators.

Internationally:

- EGMI recently secured distribution agents in Ukraine, Israel, Australia and South Africa and plans on adding additional international distributors during the second half of the year.

- EGMI has completed and delivered its first sale to an international cruise line company for onboard gaming. A revenue GameCard is expected to be launched during second half 2006.

- EGMI has continued to review commercial opportunities for sales promotions, gaming and charity fund raising.

The company commented, "We are in the process of concluding our reorganization and with the significant success witnessed by the recent lottery orders, we are now poised to begin to benefit from the enormous potential of this innovative product. Our activity over the past several months has grown materially and we are now entering a stage in which our results will reflect these efforts.

"The Company has begun to experience the results of its shelf game strategy which was introduced earlier this year. This strategy standardizes Electronic GameCards in four formats that can now be supplied to customers within a four week turn-around period. Additionally we are witnessing a broad mix of commercial opportunities that are coming on stream across the gaming and charitable markets."

About Electronic Game Card. Inc.

Electronic Game Card Inc., , develops, produces and markets the proprietary technology that is the "Electronic GameCard" which can be programmed to suit a variety of gaming and promotion applications. EGC's client base is across the $ 100 billion global market of state and national lotteries, Gaming and Casinos, Indian Gaming and the expanding sales promotion and incentive markets. EGC develops sales and marketing relationships with agents globally and has a joint venture with a major lottery focused US listed corporation which has purchased 10% of the EGC common equity stock.

July 2005, the Public Gaming Research Institute (PGRI) named the Electronic GameCard(TM) as a 2005 Lottery Product of the Year during its conference in Las Vegas. The PGRI award recognizes the importance of new products to the growth and continuing success of worldwide lotteries.

For further information please visit http://www.electronicgamecard.com

Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Some of the factors that may affect the forward looking statements in this news release are the availability of licensed personnel to operate pharmacies, the availability of suitable pharmacy locations, and the acceptance of new technologies by the medical profession. Other risk factors are listed in the most recent Annual Report on Form 10-KSB and Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission. Such forward-looking statements involve risks, uncertainties, which may cause the actual results, performance, or achievement expressed or implied to differ.


         Investor Relations:
         Roger Holdom
         Electronic Game Card, Inc.
         +44-207-451-2480
         investorrelations@electronicgamecard.com
         or
         Yvonne L. Zappulla
         Managing Director
         Wall Street Consultants Corp.
         +1-212-681-4108
         Yvonne@WallStreetIR.com
     
         Press Relations:
         Toby Hall / Jade Mamarbachi
         (gth media - Europe)
         +44-207-153-8039/8035
         toby@gth.co.uk
     
         David Owen (gth media - USA)
         david@gthmedia.com
     
     
     
     
     
SOURCE Electronic Game Card, Inc.

Investor Relations: Roger Holdom, Electronic Game Card, Inc., +44-207-451-2480,
     investorrelations@electronicgamecard.com or Yvonne L. Zappulla, Managing Director,
     Wall Street Consultants Corp., +1-212-681-4108, Yvonne@WallStreetIR.com. Press
     Relations: Toby Hall / Jade Mamarbachi, (gth media - Europe), +44-207-153-8039/8035,
     toby@gth.co.uk, David Owen (gth media - USA), david@gthmedia.com
     

A flurry of news is out (Updated) so I will truncate it for the high lights!

****************************** NEWS ********************************

NEW YORK and LONDON, Oct 5, 2006 (PrimeZone Media Network via COMTEX) -- Electronic Game Card, Inc. (EGMI) , the creator of the Electronic GameCard, today announced that it has developed two additional game software programs to be offered on its Electronic GameCard to lottery and gaming clients. The Company's extended 80 play Tic Tac Toe GameCard and Miami Dice can be played on a software simulator at http://www.electronicgamecard.com.

NEW YORK and LONDON, Oct 10, 2006 (PrimeZone Media Network via COMTEX) -- Electronic Game Card, Inc. (EGMI) , the creator of the Electronic GameCard, today reported that Aspers Group Limited has signed an agreement to use EGMI's Electronic GameCards for a promotion at its casino in Newcastle during the current fourth quarter.

NEW YORK and LONDON, Oct 11, 2006 (PrimeZone Media Network via COMTEX) -- Electronic Game Card, Inc. (EGMI) , the creator of the Electronic GameCard, today announced that it will be attending its first NASPL conference and trade show October 11-13, 2006 at the Hyatt Regency Chicago, Illinois.

NEW YORK and LONDON, Oct 26, 2006 (PrimeZone Media Network via COMTEX) -- Electronic Game Card, Inc. (EGMI) , the creator of the Electronic GameCard, today confirms that the Norwegian Association of the Disabled has signed an agreement to use Electronic GameCards in a promotion.


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Updating news as it comes to show there is activity in the company and that should spell growth in revenues as the products find their place in the industry!

************************** Change in Sentiment ***********************

   I see the current weak charting, the lack of clarity from emails to the company and no solid PR on new income streams other then promotionals in these latest few month to decide that my holdings are better served elseware!

  That is not to say the NASL convention for starters will not bring more solid clients or that the company is not expanding their state lottery positions. What it means is the delay in action or news will cost me investment dollars that could be working better for me with stock that I am covering which i believe have more current positive PR's and hints to more profitable returns.

  For that reason I am closing out my position in this company and handing this thread over to anyone that would like to keep track of the news releases and potentially new business that I am sure will come through!

I tend to be a bit more optimistic with EGMI over the long-term (i.e., 6mo-18mo).  Recently the US banned online gambling and this should cause a further migration to Vegas and Atlantic City locations as well as Indian Casinos.

The US Government has changed how wagers are administered for online gambling sites.  The US legislation: Unlawful Internet Gambling Enforcement Act, has in effect shut-down the transfer, of money, from the gambler to participating Internet Online Gaming sites.  The enforcement covers a period from 2007-2011 and provides $2M dollars to the Dept of Justice for Investigative costs.  

By mandating that financial institutions and businesses refrain from transferring consumer money electronically (wire, credit card, debit card, electronic checks, and other forms) to online sites, the US Government is giving the green flag to brick and mortar gambling businesses.  

In effect, this news is favorable to EGMI who supplies the Electronic Game Cards to gambling establishments.

Therefore - I see a bright future for software based devices such as EGMI's Game Card JV with Scientific Gaming and International Game Technology's (IGT) Slot Machine software.

Disclosure:
Own shares in EGMI: Yes