Zone4Play Considers Blackjack Spin-off

Zone 4 Play, Inc. ("Zone4Play" or the "Company") (OTCBB: ZFPI), a leading developer of interactive gaming technology, announced today that it is considering a spin-off to its shareholders of its newly-developed multiplayer Blackjack tournaments gaming technology (the "Software"). The spin-off company -"Newco" will, as a separate entity, further develop and market the Software, enabling internet users to participate in multiplayer Blackjack tournaments.. Zone4Play's decision to proceed is dependent on the results of a regulatory and tax analysis that has not been completed.

If the transaction proceeds, Zone4Play intends to incorporate Newco as an off-shore company that will purchase the Software from Zone4Play based on a valuation that has been prepared by an independent economist. In addition, Zone4Play may lend seed capital to Newco in the anticipated amount of approximately $2 million, to be secured by all assets of Newco Thereafter, Zone4Play's board of directors will announce and set a record date for a dividend distribution of the shares of Newco to its shareholders, on a one-to-one pro rata basis as of such record date.

Newco, through two fully owned entities, will have two main business models: one to market the product directly to consumers and the second to further develop and license the Software to third parties based on a license fee and revenue share basis.

"We believe that the spinoff transaction may be the preferred way to pursue this business opportunity for the benefit of our shareholders", said Shimon Citron, CEO of Zone4Play. "Zone4Play will maintain its current business as a software and technology developer and provider to the interactive gaming industry, delivering cross-platform systems that are built for mass participation gaming over all interactive platforms and to be a major part of the next generation gaming industry"

2006-06-20