Pegasus Gaming on Track for 2005 Financial Projections

Pegasus Gaming Corp. (Pink Sheets:PGGG)
(http://www.PegasusGaming.com), an I-gaming software and e-commerce
services company servicing clients from Europe and Africa, is pleased
to confirm that the company is on track to meet 2005 year end
financial projections of a net loss of $512,250, after licensing fee
payments of $1,000,000. These projections reflect the sale of three
licenses and royalty income from those operations. The licensees will
commence operations during the fourth quarter of 2005. In addition,
the company financial projections for 2006 call for 10 new licensees
to be added and to generate net income of $3,765,750 for the year.
Actual 2005 financial statements are to be presented in US GAAP and
will reflect adjustments to conform to GAAP reporting.
   2006 License sales appear to be very strong with due diligence to
be completed by 2 South African operators and on signing off by the
new operators, the web sites, infrastructure, branding and integration
of the required modules to be completed, for operations to commence in
the first quarter of 2006.
   Also for 2006, other income sources such as lottery reseller
programs which call for licensees to be authorized to receive
commissions on non gaming revenue are being pursued. This income,
which could provide licensees with significant revenues, will go
substantially towards increasing the net income of the operator, as
very little ongoing expenses are involved with the transactions.
   During the past week, the company's investor relations, and the
company itself, has received numerous confirmations that unsolicited
material has been received by the public purporting to be disseminated
by the company. This material has not been authorized by the company
nor its agents and the company will be taking steps to ensure that
this material is stopped immediately. The corporate attorney will
follow up to ensure that responsibility for the material is allocated.

   The above statements in regard to Pegasus, which are not purely
historical, are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995, including Pegasus
Gaming Corp.'s beliefs, expectations, hopes or intentions regarding
the future. All forward-looking statements are made as of the date
hereof and are based on information available to the parties as of
such date. It is important to note that the actual outcome and the
actual results could differ materially from those in such
forward-looking statements. Factors that could cause actual results to
differ materially include risks and uncertainties, such as
technological, legislative, corporate, financial and marketplace
changes.