STUDIO 777 Q3 Results: L$504,314 September Dividend, L$1,361,993 Q3

FOR IMMEDIATE RELEASE

STUDIO 777 Reports Q3 Results, 4th Consecutive Dividend Increase: L$504,314 for September, L$1,361,993 for Q3 on revenue of $54,248,888

NEW YORK, NY and Second Life – October 7, 2014 — STUDIO 777 (CAPEX: FUN) today reported results for the Third Quarter of 2014, with Shareholder dividends for the month of September increasing 11.87% to L$504,314, and dividends for Q3 totaling L$1,361,993 on revenue of $54,248,888. FUN experienced continuing growth in traffic and revenue in Q3, traditionally a slower period, as well as a challenging phase for the Skill Gaming sector.

As anticipated, higher per Player revenue and reduced competition enabled FUN in September to once again increase Shareholder dividends. FUN continues on track to become a Licensed Skill Game Operator with Linden Lab. FUN has completed all parts of its application, submitted Operator RLOs, and has received white list access for two key employees in restricted states. FUN is working in cooperation with some of Second Life’s top Skill Game Creators to submit RLOs for their most popular Skill Games.

The Third Quarter is a traditionally slower period of the year and a challenging time of transition for Skill Gaming. However, in marked contrast, steadily increasing revenue in all sectors and continued development and opportunities related to Linden Lab’s Skill Gaming polices propelled FUN to the forefront of the Skill Gaming Sector. L$775,000 of IPO funds were released from Restricted Assets for costs related to FUN’s application to become a Licensed Skill Game Operator. L$3,710,600 remains in Restricted Assets, part of the L$44,295,679 total Shareholder Equity.

Reflecting its positive long-term outlook and the momentum associated with growth and expansion initiatives, Shareholder dividends rose 11.87% from L$450,785 to L$504,314. The dividend will be paid today to all Shareholders of record, to continue the intention that dividends will be paid on the 7th of each month.

“In the four months since our IPO, in addition to expansion, the acquisition of Ads-O-Matic and our conversion to a Skill Gaming Region, we’ve also paid L$1,715,185 in dividends to our Shareholders,” Luke Slingshot, FUN CEO, remarked. “We’re proud of these accomplishments which wouldn’t have been possible without our incredible Players, Team, Shareholders, Partners and Friends. Enjoy the dividends and we look forward to bringing you more good news in Q4, our traditionally busiest quarter.”

KariAnne Starsmith, FUN President, commented, “In September the new Skill Gaming policies brought us new Players with interest and experience in our Skill Games, and once again resulted in a terrific month to close out the Third Quarter. We’re very happy and proud to be able to increase dividends for our Shareholders. We continue to have great progress on our Skill Gaming Operator application, we’re working with some of the best Creators, and we’re submitting RLOs. We’re grateful to our Shareholders and are focused on execution to maximize Shareholder value.”

###

STUDIO 777 (FUN) September 2014 Financial Statement

Balance Sheet

ASSETS
Builds and Functional Objects L$250,000
Unique, Custom Made and Proprietary Objects L$250,000
Games, Contest Boards and Equipment L$30,000,000
Scripted objects L$250,000
Intellectual Property L$3,000,000
Transferable Objects L$100,000
Cash L$6,445,679
Ads-O-Matic 50% Ownership L$500,000
Goodwill L$3,500,000

LIABILITIES 0

SHAREHOLDERS EQUITY L$44,295,679

Cash Flow

Operations
STARTING L$ BALANCE L$2,518,944
REVENUE L$15,928,585
FROM RESTRICTED L$775,000
TOTAL REVENUE L$16,703,585

EXPENSE
Land L$95,000
Donations L$50,000
Skill Gaming Legal Fees L$775,000
Staff L$262,000
Events and Comps L$532,890
Marketing L$973,008
Games, contests, incentives L$13,295,238
Total L$15,983,136

PROFIT L$720,449
Percentage to Dividend: 70%
Dividends to Shareholders L$504,314
Retained Earnings L$216,135

ENDING BALANCE L$2,735,079

Restricted

STARTING RESTRICTED BALANCE L$4,485,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$775,000
ENDING RESTRICTED BALANCE L$3,710,600

(1) STUDIO 777’s IPO took place in June, 2014. Funds raised are to be used as discussed in our IPO Application (seehttp://slcapex.com/forums/topic/FUN/9405). For more information about Restricted Assets, please see http://wiki.fool.com/Restricted_vs._Unrestricted_Net_Assets

Number of Shares Outstanding 20,000,000
Net Value Per Share L$2.22
Earnings Per Share L$0.04
Dividends Per Share L$0.0252
Dividends Paid To Date L$1,715,185

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STUDIO 777 (FUN) 3rd QUARTER FINANCIAL STATEMENT
July 1, 2014 – September 30, 2014

Balance Sheet

ASSETS (as of 9/30/14)
Builds and Functional Objects L$250,000
Unique, Custom Made and Proprietary Objects L$250,000
Games, Contest Boards and Equipment L$30,000,000
Scripted objects L$250,000
Intellectual Property L$3,000,000
Transferable Objects L$100,000
Cash L$6,445,679
Ads-O-Matic 50% Ownership L$500,000
Goodwill L$3,500,000

LIABILITIES 0

SHAREHOLDERS EQUITY L$44,295,679

Cash Flow

Operations

STARTING L$ BALANCE L$2,151,368
REVENUE L$52,198,888
FROM RESTRICTED L$2,050,000
TOTAL REVENUE L$54,248,888

EXPENSE
Land L$239,000
Donations L$150,000
Ads-O-Matic 50% Purchase L$500,000
Skill Gaming Application Fee L$25,000
Skill Gaming Legal Fees L$1,525,000
Staff L$774,000
Events and Comps L$1,237,978
Marketing L$3,042,678
Games, contests, incentives L$44,809,528
Total L$52,303,184

PROFIT L$1,945,704
Percentage to Dividend: 70%
Dividends to Shareholders L$1,361,993
Retained Earnings L$583,711

ENDING BALANCE L$2,735,079

Restricted
STARTING RESTRICTED BALANCE L$5,760,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$2,050,000
ENDING RESTRICTED BALANCE L$3,710,,600

(1) STUDIO 777’s IPO took place in June, 2014. Funds raised are to be used as discussed in our IPO Application (seehttp://slcapex.com/forums/topic/FUN/9405). For more information about Restricted Assets, please see http://wiki.fool.com/Restricted_vs._Unrestricted_Net_Assets

Number of Shares Outstanding 20,000,000
Net Value Per Share L$2.22
Earnings Per Share L$0.10
Dividends Per Share L$0.0681
Dividends Paid in Q3 1,361,993
Dividends Paid To Date L$1,715,185

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ABOUT STUDIO 777: Since 2009, STUDIO 777 (CAPEX: FUN) has welcomed over 1 million Guest visits with over 50 million minutes spent at 777 in the Second Life virtual world. With 30,000 Group Members, over 1,400 Live Events with international DJs & L$ prizes, 50 Mall Stores, and L$250 Million Linden won by Players and Guests, STUDIO 777 has gained a reputation for trust, integrity and fun. 777 has been ranked third highest in traffic in Second Life and honored to be named Second Life’s #1 Skill Gaming Nightclub & Resort. Visit STUDIO 777 in Second Life at http://slurl.com/secondlife/Sol%20Hermosa/114/93/35Twitter @Studio777Club and on the web at http://www.Studio777s.com.

ABOUT CAPITAL EXCHANGE: Capital Exchange (www.slcapex.com) is Second Life’s largest stock market simulation game. In the last 12 months over L$120,000,000 of virtual stock within the game has been traded. Skip Oceanlane has been the Capital Exchange CEO since January, 2011.

ABOUT LINDEN LAB: Founded in 1999 and headquartered in San Francisco, Linden Lab makes shared creative spaces that inspire and empower users to explore and share their creativity with others. For more about Linden Lab, its products, and career opportunities please visit LindenLab.com.

Safe Harbor Statement:
This document contains statements which may constitute forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of STUDIO 777, members of management, and assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Capital Exchange is a fictional stock market simulation game operating for entertainment and educational purposes only. All activity regarding Capital Exchange is governed by CapEx’s disclosure statement athttp://www.slcapex.com/content/disclosure and full rules for CapEx participation are at http://slcapex.com/content/info.

Copyrights and trademarks are STUDIO 777 Partners. All worldwide rights reserved. Second Life is a registered trademark of Linden Research, Inc. All trademarks, product data, logos and copyrights are the property of their respective Companies and no endorsement is implied. STUDIO 777 is proud to be equal opportunity and welcomes all applicants.

CONTACTS:
For STUDIO 777: Luke Slingshot, KariAnne Starsmith
In world: Luke Slingshot, KariAnne Starsmith
Email: Mr. Slingshot: Luke@Studio777s.com, Ms. Starsmith: karianneinsl@gmail.com
SOURCE: STUDIO 777

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