“In 2015 Pavilion will concentrate on Native American and Online Wagering”

How is the company positioned in US market?
Pavilion Worldwide Group creates, develops and manufactures video slot machine and social (non- wagering) games. The Company operates real money wagering routes in major North American tribal casinos. It has licensed a unique and compelling library of major Motion Picture and Television Studio IP for the creation of its games; and has partnerships and joint ventures with companies throughout the United States, South America, Asia and Europe.

A core asset of the Company’s business model is its Portfolio Licensing Program, unique to the gambling and social gaming industry. Pavilion utilizes these branded, well-known, titles, plots and ancillary materials from existing motion pictures and television shows and series produced by major studios and television production companies to create games; market to shows’ fan bases and create a TV and/or movie-centric “destination” in Casinos. Where, allowable from a regulatory perspective, the Company is creating an on-line portfolio as well. Pavilion has developed an unique approach to this market, focusing on "library" (catalog) titles; which are “under the radar” of some of our larger competitors - and which are available a) at a relatively modest price and b) in revolving "pools" of inventory; allowing Pavilion to systematize its release of games into the market so as to maximize their popularity and profitability.

Overall, Pavilion is building a highly profitable gaming company driven by four proven factors:

·                     Unique Gaming Content IP Licenses – Smart licensing of popular and classic television and movie IP at dramatically lower cost than is typical;

·                     Refreshable Gaming Devices – Massively scalable physical gaming distribution via a disruptive, proven, proprietary and patented technology; and

·                     Strong Demand From Native American Tribes – Heavy customer demand to replace existing underperforming gaming machines.

·                     Distribution agreements of Pavilion’s library of iconic TV and motion picture studio titles for branding of games by the leading players in the world-wide internet real money wagering and server based physical video slot machines.

What are your targets?
2015 will be the year that Pavilion concentrates on Native American and Online Wagering where it happens to be legal. The company will:

a.            Release of 14 new games in North American Markets by the end of 2015

b.            Meet the demand for TV and movie branded in Class II Native American casino venues by introducing eight new branded products.

c.            Launch five (branded games) for online distribution using its Classic TV library.

Pavilion is currently developing a game design and production facility in Mississippi in collaboration with that State’s Film Development Office. When will it be operational? What will this have? How many employees will be based there? What will this office do?
The Pavilion Project is called Hippodrome Studio and is a state-of-the art multi-discipline production facility, based in Mississippi. The target start date is February 2015 and its 100-acre campus will consist of four primary, integrated facilities:“Big Tent”, a digital development game and production studio, creating games for Pavilion and third- party accounts. Pavilion’s business is driven by a proprietary portfolio of exclusive major studio licensed IP; refreshable gaming technology, strong demand from Native American tribes and distribution agreements with leading world-wide gaming companies.

·         Hippodrome Studios, a full- service, flexible motion picture and television production studio and sound stage complex utilizing the robust Mississippi film rebate and job creation programs. The Studio will become an exciting tourist destination, unique in the region, allowing visitors to observe an actual film studio in action.  It may also become a center for the development of educational and career opportunities for college students in Mississippi.

·                     A production and post-production studio center for game and film development and support, including set construction, screening rooms and commissary, equipment storage and maintenance and a full range of post-production suites; which will be utilized for in-house productions as well as leased to third party post-production houses working in Mississippi and the surrounding states.

·                     A hotel, with approximately 300 rooms, utilized both for housing film production personnel, actors, staff, crew, but also for the general public; the location selected will be in a high traffic area both for tourism (the Studio itself will be an attraction) and business.  Additionally, there will be approximately 10 suites built for longer- term stays by major clients for both the game and movie production studios.

Phase 1 Campus Components

Hippodrome Studios: A 100,000 square foot world class film and television production center housing two sound stages; state of the art lighting and air conditioning.

Big Tent Digital Game Design Studio

A 35,000 square foot facility for creation of:

1.            Social (non-wagering) digital games for social media and mobile applications.

2.            Online wagering games for distribution to licensed third parties in regulated territories.

3.            Video Slot Machine games for distribution by third parties to casinos worldwide

The Pavilion Conference Center & Hotel

300 room- hotel serving Hippodrome personnel and business and tourist guests.  State-of-the-art conferencing capacity; to be flagged.

Digital & Theatrical Production Center

Studio support facilities, including set- construction shops, warehousing, vehicle storage as well as post production, special effects and animation shops. Commissary and screening rooms.

What is your opinion on the current US iGaming law(s)?
The USA remains a difficult market to quantify and most experts cannot agree on a definitive timeline for a fully legal ‘federal’ policy. The recent developments in various states have certainly elevated the issue but a unified internet policy for the USA would certainly make a more attractive case for Pavilion to venture heavily into games for the US iGaming sector. In the meantime, we will adopt a "watch and wait” policy, focusing our efforts on the legal territories outside the USA. With our current far-reaching and ambitious land-based plans, we have more than enough to keep us busy!

What are Pavilion’s next steps?
We have a strategic plan to deliver premium content and that involves a 3-part focus: -

·                     Deliver games to our USA land-based routes

·                     Deliver games to non-US online markets (incl. mobile and social)

·                     Continue to secure more premium, branded IP

With strong land-based routes already contractually in place, and many more to come, we are currently working closely with our development partners to produce the premium- brand content from our library of IP. The deal with CBS has given us a fantastic library to work with for our land-based markets and a slightly smaller set of titles to work with in the non-US online sector. These are our key priorities for the next six months.

The Internet remains a strong market for premium- brand content, not just for the real-money sector but also for the ‘social’ space and we are working with key partners to develop engaging, blockbuster content for that audience.

We also will continue with our aggressive strategy to acquire unique premium branded IP for the sector and we hope to be able to announce many more exciting agreements in the upcoming  twelve months.

What can you tell us about the launch of 10 real- money wagering games in 2015?
We are well on target to meet our schedule for at least ten real-money wagering games in 2015. This will largely be achieved with our current development partners who are working with a strict delivery timeline. In addition, as we progress through 2015 we will be looking to strengthen that delivery capability from within our “Hippodrome” project which includes our own game design studio. Naturally, we will be focused on game ‘quality’ and driving excellent revenues and not just games for the sake of games. Our IP clients expect results and so does Pavilion.