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FUN Technologies releases 2004 year-end results

March 31, 2005

LONDON, England, March 31 - FUN Technologies plc (the "Company" or "FUN"), a leading provider of person-to-person skill gaming, exchange-betting technology and online sports information, today announced its financial results for the fourth quarter and year ended December 31, 2004. A complete set of consolidated financial statements is available at www.sedar.com, or at our website, www.funtechnologies.com. A copy of the announcement released to the U.K. market is also available on our website.

Commenting on the announcement, Chief Executive Officer Lorne Abony said, "2004 was a year of unprecedented corporate activity for FUN. Through a mix of strategic entry acquisitions and very successful fundraisings, we are now extremely well placed to exploit the dynamic, rapidly growing markets in which we operate. Furthermore, our skill-gaming operation has now established a market-leading position within its industry."

Chairman Andrew Rivkin added, "Since the year end we have strengthened our senior management team through the appointment of Rick Weil as President. He has assumed the responsibility of the integration of Don Best and the identification of other complementary acquisition opportunities, as well as many of the day-to-day operating responsibilities. In terms of revenue, while 2004 saw the advent of first revenues, we anticipate that 2005 will see significant growth in our business. Furthermore, given that the Don Best acquisition closed on January 31 and the AOL license agreement is only just beginning to have an impact, we anticipate stronger growth in the second half of 2005. Our strategy continues to be to grow our core businesses organically by exploiting their market-leading positions, and use our strong balance sheet to make acquisitions at attractive prices. The Board remains committed to building long-term shareholder value.

Operational Highlights

- Acquisition of SkillJam Technologies, a leader in the skill-gaming market, for an initial cash consideration of pnds stlg 4.5 million plus a reducing net revenue sharing arrangement on European operations for the five years following closing.
- Secondary listing on the Toronto Stock Exchange, and pnds stlg 28.7 million fundraising.
- Acquisition of Don Best Sports, the leading provider of sports information and odds in the gaming industry, for pnds stlg 27 million at the end of January 2005.
- Signing of multi-year license agreements to provide "white-label" skill-gaming platforms for AOL Inc., Golden Palace, SPO Ventures, and the Game Show Network.
- Vienna Stock Exchange listing of "betbull plc" (formerly "Ebex"), a FUN exchange-betting licensee and a company in which FUN holds a 25% equity stake.

Financial Highlights

- Fundraising of a gross total of pnds stlg 28.7 million via share issues and placings.
- First revenues of approximately pnds stlg 1 million generated during the five months since the acquisition of SkillJam.

Acquisition of SkillJam

On July 30, 2004, the Company closed its acquisition of SkillJam Technologies Corporation (www.skilljam.com). SkillJam is a leading provider of diversified, fee-based skill-gaming solutions. The business was acquired for an initial cash consideration of US$8 million (approximately pnds stlg 4.5 million), as well as a declining net revenue sharing arrangement on SkillJam's European operations for five years following the closing of the transaction. The cash portion of the purchase price was satisfied through an offering of special warrants and ordinary shares, which raised total gross proceeds of CAD$11.5 million (approximately pnds stlg 4.7 million).

SkillJam is well-positioned for growth in the burgeoning skill-gaming marketplace. Since the acquisition it has continued its strong momentum, entering into agreements with a number of new distribution partners including AOL Inc., Golden Palace, SPO Ventures and the Game Show Network. As a result of this acquisition, FUN recorded its first major revenue stream since the Company's inception - revenue for the five months since the business was acquired amounted to approximately pnds stlg 1 million.

Exchange Betting IPO

The Company also reached a milestone in its exchange-betting business. betbull - The European Betting Exchange plc ("betbull"), a licensee of FUN's exchange-betting technology and an investee company, completed its initial public offering on the Vienna Stock Exchange in October 2004 and commenced commercial operations.

Listing on the Toronto Stock Exchange

On October 5, 2004, the Company listed on the Toronto Stock Exchange (TSX) under the symbol "FUN", and significantly strengthened its balance sheet, closing additional equity financings with aggregate proceeds of approximately pnds stlg 24 million (before expenses). This listing diversified the Company's existing shareholder base and exposed the Company to a broader potential investor audience, and we believe it has also helped to enhance overall shareholder liquidity.

Don Best Acquisition

On January 31, 2005, the Company closed on its acquisition of Don Best Sports ("Don Best"). Founded in 1989 and based in Las Vegas, Nevada, U.S.A., Don Best (www.donbest.com) is a leading sports information provider. It publishes a wide range of market-sensitive information via the Internet, enabling its customers to make a more educated wager.

The Don Best business complements FUN's other gaming divisions. The overall consideration for the acquisition consisted of the payment of US$41 million in cash, the issuance of 3,240,000 ordinary shares of FUN, and the issuance of a maximum of one million further ordinary shares pursuant to an earn-out clause. The Company believes that the acquisition will create additional value for FUN shareholders.

Name Change to FUN Technologies

On January 26, 2005, the name change from "CES Software plc" to "FUN Technologies plc" was approved by shareholders. The name "FUN" was chosen because it reflects the Company's overall goal of facilitating high-quality, efficient gaming and betting experiences for its customers. The Company's new identity incorporates a new logo - representative of the new name and the "person-to-person" nature of the organization's products and services - as well as a new website, www.funtechnologies.com.

Outlook

While 2004 saw the advent of first revenues, we anticipate that 2005 will see significant growth in our business. Since the Don Best acquisition closed recently on January 31, and the AOL license agreement is only just beginning to have an impact, we anticipate stronger growth in the second half of 2005.

About FUN Technologies plc

FUN Technologies plc (formerly "CES Software plc" or "CES") is a leading provider of person-to-person skill gaming, exchange-betting technology and online sports information. FUN's strategy is to provide its cutting-edge, person-to-person gaming systems to top, licensed distribution partners in regulated markets around the world. FUN is a public company, incorporated in England and Wales, and is listed on both the Toronto Stock Exchange and the Alternative Investment Market (AIM) of the London Stock Exchange under the symbol "FUN".

Forward-Looking Statements

This news release may contain forward-looking statements based on current projections and are not guarantees of future performance, and involve certain risks and uncertainties that are difficult to predict. The future results of the Company may differ materially from those expressed in the forward-looking statements contained in this news release, due to, among other factors, the risks and uncertainties inherent in the business of the Company, the risk factors discussed in the Company's final prospectus (dated October 22, 2004), and in other documents published or filed from time to time. The Company does not undertake any obligation to update or release any revisions to these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect the occurrence of unanticipated events.

For further information: FUN Technologies, Lorne Abony, CEO, (416) 840-0806; James Lanthier, CFO, (416) 840-0806; Alex Mackey, Catullus Consulting, +44 (0)207 736 2938