IQ - LUDORUM

IQL is in negotiations regarding the provision of electronic payment services to several potential customers who do not already use IQL's internet gaming
software. It is proposed that in future IQL will offer both "bundled" (gaming
software and payment processing) and "unbundled" software solutions to clients.
IQL also intends to offer the payment processing solutions on a "white label"
basis to third parties.

The Company needed the additional working capital in order to:

* develop further its software and systems;
* fund the cash element of the consideration for the acquisition of two
target competitive software vendors;
* fund the acquisition of an established US based direct debit payment
provider / automatic payment provider and related proprietary software;
* fund the purchase of a copy of the source code to the electronic payment
processing platform;
* acquire networked kiosks and other virtual gaming terminals for
installation in licensee locations in South America and the Caribbean;
* install and activate a datacenter in Antigua for the processing of
payment transactions;
* establish a 'hosted solutions' division;
* purchase long-term revenue share agreements with branded internet gaming
sites.

It is also mentioned that the payment processing software derives revenues by deducting a volume linked fee which is normally up to 11 % of the transaction value. Given the multi billion monatary volumes this could have massive potential, whilst there are already established providers the bundled offering will give them an initial entry + they are already in discussions.