OREANDA-NEWS. August 18, 2015. Contagious Gaming Inc. (TSX VENTURE: CNS) ("Contagious Gaming" or the "Company") would like to respond to a news release by Sportech PLC ("Sportech") dated August 14, 2015 (the "News Release"). The News Release noted the recent press speculation surrounding a possible transaction between Sportech and Contagious Gaming. Sportech announced that it has received a proposal from Contagious Gaming regarding a possible recommended offer for the whole of the issued and to be issued ordinary share capital of Sportech. The News Release further stated any recommended offer from Contagious Gaming may comprise of cash and Contagious Gaming shares.

Contagious Gaming confirms that it is in discussions with Sportech on a possible business combination that may create a combined, technology-focused, sports wagering company and a global leader in regulated pari-mutuel wagering (the "Business Combination").

The News Release by Sportech was an announcement under Rule 2.4 of the City Code on Takeovers and Mergers (the "Code"). Contagious Gaming has not made a firm intention statement regarding the proposed Business Combination as outlined under Rule 2.7 of the Code.

A proposal has been made to Sportech with respect to the Business Combination which the Company expects to create significant shareholder value for existing and potential new shareholders of Sportech and Contagious Gaming. The proposed Business Combination is subject to a number of conditions, including securing appropriate debt and equity financing. There can be no certainty that the submission of the proposal will lead to Contagious Gaming making a formal offer or, in turn, the completion of the Business Combination.

In accordance with Rule 2.6(a) of the Code, Contagious Gaming must, by no later than 5.00 p.m. on 11 September 2015, either announce a firm intention to make an offer for Sportech in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of Sportech and the Takeover Panel (the "Panel").

About Sportech

Sportech is a sports wagering company listed on the London Stock Exchange. Sportech is comprised of three business divisions: Sportech Racing and Digital, Sportech Venues and The Football Pools. In 2014, Sportech generated revenues of ?104 million (CDN \\$213 million) and Adjusted EBITDA(1) of ?24 million (CDN \\$49 million) in fiscal year 2014.

Business Combination Rationale

The following rationale is subject to the successful completion of the Business Combination. There can be no certainty that the submission of the proposal will lead to Contagious Gaming making a formal offer or, in turn, the completion of the Business Combination.

·     The Business Combination will create the largest pure play sports focused gaming company on the TSX

·     Combines a technology driven company focused on developing online/ mobile solutions for the sports betting and lottery markets with the UK's largest private sports lottery

·     The new entity will be a leader in sports betting, offering live in-play wagering opportunities on a fixed odds and pari-mutuel basis to regulated markets globally (2)

This announcement has not been made with the agreement or approval of Sportech.

(1)  Adjusted EBITDA is stated before exceptional costs and share option expense as stated in Sportech's 2014 Annual Report.

(2)  Subject to the completion of Contagious Gaming's acquisition of Digitote Limited and Digitote Software GmbH Deutschland (together "Digitote").

Note: all GBP has been converted to CDN \\$ at an FX rate of 1:2.05

About Contagious Gaming

Contagious Gaming Inc. (TSX VENTURE: CNS) is a rapidly emerging developer of unique and engaging software solutions for regulated gaming and lottery operators around the world. The Company is currently focused on deploying its first-to-market lottery-style sports betting platform in the United Kingdom and its proprietary digital instant lottery content in the United States and other international jurisdictions. Contagious Gaming's sports betting platform is the first sports betting system to allow players to chase a dynamic jackpot live during Premier League soccer matches. The Company is a first mover in the roll-out of digital instant lottery content in the United States. For more information on Contagious Gaming please visit www.contagiousgaming.com.