SL CapEx Reports

STUDIO 777 Reports October 2014 Results: Continuing Strong Revenue Results in Over L$2 Million in Dividends for Shareholders

NEW YORK AND SECOND LIFE — November 7, 2014 — STUDIO 777™ (CAPEX: FUN), the #1 Skill Gaming Nightclub, Mall and Resort in the Second Life® virtual world since 2009, today announced results for October 2014 with monthly revenue of L$17,950,627 and Shareholder dividends of L$301,862, now bringing total Dividends to over L$2 Million since inception. FUN had strong and steady revenue even as changes resulting from Linden Lab’s new Skill Gaming Policy had an effect on the overall sector.

Linden Lab®, a division of Linden Research, Inc., approved STUDIO 777 as an official Second Life Skill Gaming Program Operator (“SLSGO”) and Sol Hermosa as an official Skill Gaming Region (“SGR”) on October 29, 2014, one of less than 50 approved. http://wiki.secondlife.com/wiki/Linden_Lab_Official:Second_Life_Skill_Gaming_Approved_Participants

FUN worked in cooperation with Skill Game Creators Raziel Foggarty and Aargle Zymurgy to submit Reasoned Legal Opinions (“RLOs”) for their most popular Skill Games. Mr. Foggarty’s hugely popular game, 4PLAY, was approved in record time and with no revisions or changes thanks to the excellent work by Mr. Foggarty and everyone on the team.

“Another epic month! October was filled with great progress and we’re pumped with the results,” said Luke Slingshot, CEO of FUN. “We’re proud that we’ve paid our Shareholders over L$2 Million in Dividends in just a few months, been approved to be a Skill Gaming Operator, saw increased play, traffic and other metrics, and hired staff and builders.

“Soon you’ll see our new custom designed and built Dome with a new Landing Point, our new Homestead featuring JOBSTAR, ADS-O-MATIC and an all-new Mall and our second Skill Gaming Region. We’re grateful to Linden Lab for continuing help and support, our attorney Stevan Lieberman, and our Players, Team, Shareholders, Partners and Friends. We’re planning big FUN for the holidays!”

On October 27, 2014, FUN announced its alliance with Pi Games to become one of only ten approved Skill Game Operators authorized to host the new Pi Games Tournament System featuring REEL WILD, ENCHANTED, DEVIL HUNT and more of Second Life’s most popular Skill Games.

Pi Games CEO FoxyFurman Kumaki commented, “STUDIO 777 has been a great partner since nearly the inception of Pi Games in Second Life, and as we were developing the Pi Games Tournament System, Luke and his team were enthusiastic and professional about supporting and joining the project. We’re delighted to have STUDIO 777 join us as we develop new games and continue offering some of the most successful games on the grid.”

In anticipation of these new games, and looking ahead to continuing approvals by Linden Lab, FUN commissioned the construction of a new, much larger dome on its primary Skill Gaming Sim, Sol Hermosa. Additionally, FUN obtained a new Homestead Sim and began the relocation of its Designer Mall, JOBSTAR Employment Agency and ADS-O-MATIC Marketing Service. FUN’s arrangement with Pi Games calls for a dedicated Sim which is in progress.

Strong revenues despite large expenses to meet the requirements for growth and Skill Gaming requirements resulted in Shareholder dividends of L$301,862. STUDIO 777 supports CapEx and continues to be confident CapEx will successfully become a licensed Skill Game Creator and Operator. Dividends will be held in reserve in accordance with CapEx policy.

L$2,120,000 of IPO funds were released from Restricted Assets for costs related to FUN’s application to become a Licensed Skill Game Operator and the costs related to new builds and Homestead expansion. Growth and Skill Gaming investments bring new areas of profitability. L$1,590,600 remains in Restricted Assets, part of the L$42,605,048 total Shareholder Equity.

KariAnne Starsmith, FUN President, explained, “Revenue in October was extremely strong. And November began on a great note! Circumstances beyond our control — Approvals from Linden Lab, Skill Gaming Region requirements, necessary expansion, Skill Game updates and the like increased costs, but many of these investments are non recurring, and solidified STUDIO 777’s leadership role in the sector.”

STUDIO 777 (FUN) October 2014 Financial Statement

Balance Sheet

ASSETS
Builds and Functional Objects L$550,000
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$4,455,048
Ads-O-Matic 50% Ownership L$500,000
Goodwill L$3,500,000

LIABILITIES 0

SHAREHOLDERS EQUITY L$42,605,048

Cash Flow

Operations

STARTING L$ BALANCE L$2,735,079

REVENUE L$15,830,627
FROM RESTRICTED L$2,120,000
TOTAL REVENUE L$17,950,627

EXPENSE
Land L$121,200
Donations L$50,000
Skill Gaming Legal Fees L$1,800,000
Staff L$275,000
Events and Comps L$654,412
Marketing L$975,110
Dome and Homestead Expansion 320,000
Games, contests, incentives L$13,323,674
Total L$17,519,396

PROFIT L$431,231

Percentage to Dividend: 70%
Dividends to Shareholders L$301,862
Retained Earnings L$129,369

ENDING BALANCE L$2,864,448

Restricted

STARTING RESTRICTED BALANCE L$3,710,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$2,120,000

ENDING RESTRICTED BALANCE L$1,590,600

(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$2.13
Earnings Per Share L$0.02
Dividends Per Share L$0.0151
Dividends Paid To Date L$2,017,047

+++

ABOUT STUDIO 777: Since 2009, STUDIO 777™, an Official Skill Gaming Operator, 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, 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/114/93/35 Twitter @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 press release 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 at http://www.slcapex.com/content/disclosure and full rules for CapEx participation are at http://slcapex.com/content/info.

Copyright © STUDIO 777 Partners. All worldwide rights reserved. Second Life and Linden Lab are registered trademarks 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


Luke Slingshot, CEO
STUDIO 777™ (FUN)

STUDIO 777. Discover TREASURE.
http://www.Studio777s.com @Studio777Club
Teleport to 777: http://maps.secondlife.com/secondlife/Sol%20Hermosa/128/187/22
CapEx Stock Market information about FUN: http://www.slcapex.com/forums/browse/FUN

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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

###

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

###

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

STUDIO 777 Reports August 2014 Results and L$450,785 Dividend

FOR IMMEDIATE RELEASE

STUDIO 777 Reports August 2014 Results; Shareholder Dividends Increase Over L$40,000 to L$450,785!

NEW YORK, NY and Second Life – September 7, 2014 — STUDIO 777 (CAPEX: FUN) today reported results for the month ended August 31, 2014, with Shareholder dividends increasing 11% to L$450,785. FUN experienced an exciting month in August with heightened revenue and great traffic during a traditionally slower month. During August FUN continued steady progress with its application to become a Licensed Skill Game Operator with Linden Lab, prepared to comply with new Skill Gaming rules and regulations, and continued strong business during a time of transition in the Skill Gaming sector. L$375,000 of IPO funds were released from Restricted Assets for costs related to FUN’s application to become a Licensed Skill Game Operator. L$4,485,600 remains in Restricted Assets, part of the L$44,854,544 total Shareholder Equity.

Overall, steadily increasing revenue in all sectors and continued development and opportunities related to Linden Lab’s Skill Gaming polices place FUN at the forefront of the Skill Gaming sector as it enters an exciting new phase. Reflecting its positive long-term outlook and the momentum associated with growth and expansion initiatives, Shareholder dividends rose 11% from L$406,894 to L$450,785. 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.

KariAnne Starsmith, FUN President, commented, “We are thrilled that we had a great month of revenue and traffic during the lazy days of Summer, and that we we’re able to increase dividends to our valued Shareholders. Our hard work is paying off as our Skill Game Operator application is moving along smoothly, we were converted to a Skill Gaming Region, and our attorney is preparing our Reasoned Legal Opinions (“RLOs”). We are grateful that our Shareholders have stayed with us, and happy to say that more good news is coming. We’re looking forward to it and and thank our Shareholders, Team, Partners and friends!”

STUDIO 777 (FUN) August 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$7,004,544
Ads-O-Matic 50% Ownership L$500,000
Goodwill L$3,500,000

LIABILITIES 0

SHAREHOLDERS EQUITY L$44,854,544

Cash Flow

Operations

STARTING L$ BALANCE L$2,325,751

REVENUE L$15,898,631
FROM RESTRICTED L$375,000
TOTAL REVENUE L$18,599,382

EXPENSE

Land L$72,000
Donations L$75,000
Skill Gaming Legal Fees L$375,000
Staff L$250,000
Events and Comps L$354,044
Marketing L$1,103,185
Games, contests, incentives L$15,739,175
Total L$17,955,404

PROFIT L$643,978

Percentage to Dividend: 70%
Dividends to Shareholders L$450,785
Retained Earnings L$193,193

ENDING BALANCE L$2,518,944

Restricted

STARTING RESTRICTED BALANCE L$4,860,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$375,000

ENDING RESTRICTED BALANCE L$4,485,600

(1) STUDIO 777’s IPO took place in June, 2014. Funds raised are to be used as discussed in our IPO Application (see http://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$2.24
Earnings Per Share L$0.03
Dividends Per Share L$0.0200
Dividends Paid To Date L$1,210,871

###

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/114/93/35 Twitter @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: lukeFLL@gmail.com, Ms. Starsmith: karianneinsl@gmail.com

SOURCE: STUDIO 777

STUDIO 777 Reports July 2014 Results and L$406,894 Dividend

FOR IMMEDIATE RELEASE

STUDIO 777 Reports July 2014 Results; Shareholder Dividends Increase Over L$50,000 to L$406,894!

NEW YORK, NY and Second Life – August 7, 2014 — STUDIO 777 (CAPEX: FUN) today reported results for the month ended July 31, 2014, with Shareholder dividends increasing over L$50,000 (14%) to L$406,894. FUN experienced another historic month in July with heightened revenue and growth, new expansion, and great traffic. During July FUN completed a 50% purchase of the Ads-O-Matic fully TOS compliant group messaging and notice service; and FUN applied to become a Licensed Skill Game Operator with Linden Labs, retaining attorney Stevan Lieberman of Greenberg & Lieberman, LLC. L$900,000 of IPO funds were released from Restricted Assets for costs related to these expansion and growth opportunities. L$4,860,600 remains in Restricted Assets, part of the L$45,033,651 total Shareholder Equity.

Overall, steadily increasing revenue in all sectors including acquisitions and opportunities related to Linden Lab’s new Skill Gaming policies all came together this month to propel FUN to a new unprecedented level. Reflecting its positive long-term outlook and the momentum associated with growth and expansion initiatives, Shareholder dividends rose over 14% from L$353,192 to L$406,894. 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.

Luke Slingshot, FUN CEO, commented, “We’re pumped that once again our revenue and profit increased, and we’re able to increase dividends to our valued Shareholders. It’s meant a lot to us that Shareholders have stayed the course. We will continue to execute on new initiatives and the Skill Gaming project which begins September 1, 2014. We’re excited about the future and thank our Shareholders, Team, Partners and friends!”

STUDIO 777 (FUN) July 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$7,183,651
Ads-O-Matic 50% Ownership L$500,000
Goodwill L$3,500,000

LIABILITIES 0

SHAREHOLDERS EQUITY L$45,033,651

Cash Flow

Operations

STARTING L$ BALANCE L$2,151,368

REVENUE L$15,894,553
FROM RESTRICTED L$900,000
TOTAL REVENUE L$18,945,921

EXPENSE

Land L$72,000
Donations L$75,000
Ads-O-Matic 50% Purchase L$500,000
Skill Gaming Application Fee L$25,000
Skill Gaming Legal Fees L$375,000
Staff L$250,000
Events and Comps L$351,044
Marketing L$966,485
Games, contests, incentives L$16,225,115
Total L$18,814,644

PROFIT L$581,277

Percentage to Dividend: 70%
Dividends to Shareholders L$406,894
Retained Earnings L$174,383

ENDING BALANCE L$2,325,751

Restricted

STARTING RESTRICTED BALANCE L$5,760,600 IPO Proceeds (1)
MOVED TO OPERATIONS L$900,000

ENDING RESTRICTED BALANCE L$4,860,600

(1) STUDIO 777’s IPO took place in June, 2014. Funds raised are to be used as discussed in our IPO Application (see http://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$2.25
Earnings Per Share L$0.03
Dividends Per Share L$0.0200
Dividends Paid To Date L$760,086

###

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/114/93/35 Twitter @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: lukeFLL@gmail.com, Ms. Starsmith: karianneinsl@gmail.com

SOURCE: STUDIO 777

KA-CHING! FUN Delivers 76% Dividend Increase; Earnings Soar!

Live Worldwide at IPO News Today: http://ipo.einnews.com/247pr/389355 and PR Urgent: http://www.prurgent.com/2014-07-07/pressrelease352223.htm and NBC News’ NewsVine: http://studio777.newsvine.com/_news/2014/07/07/24678166-ka-ching-studio-777-delivers-a-76-dividend-increase-and-reaches-new-earnings-heights

FOR IMMEDIATE RELEASE

KA-CHING! STUDIO 777 (FUN) DELIVERS A 76% DIVIDEND INCREASE AND REACHES NEW EARNINGS HEIGHTS

STUDIO 777™ (CAPEX: FUN), Capital Exchange’s largest IPO ever, sold out and joined the #1 Stock Market Simulation Game in Second Life®. The Company announced that higher sales and margins generated strong earnings growth and raised Shareholder dividends.

NEW YORK, NY and Second Life – July 7, 2014 — STUDIO 777 (CAPEX: FUN) today reported results for the month ended June 30, 2014. Since the Company’s IPO application projections, FUN revenue surged over 50% from L$10,000,000 to L$15,148,396, and dividends increased 76% to L$353,192. This does not include the IPO proceeds of L$5,760,600; these funds have been allocated as restricted. Management reports that due to IPO marketing and press coverage, there was an unprecedented increase of new players including new Second Life residents coming from all over the grid. Our Board of Directors has directed these profits be disbursed to Shareholders immediately because of the Company’s dividend policy (see footnote 6 below). Management expects increased revenue and profit going forward.

Reflecting its positive long-term outlook and the momentum associated with growth initiatives, Shareholder dividends rose from a projected L$200,000 to L$353,192. The dividend will be paid 7/7 to all Shareholders of record, and it is intended that dividends will be paid on the 7th of the month thereafter.

“Woot! With huge thanks to over 200 Shareholders, we sold out CapEx’s largest IPO and achieved some of our best results ever! It’s been amazing and look for major FUN news coming soon,” said Luke Slingshot, CEO. “Our IPO Thank You party at TREASURE with DJ Rainne & DJ Psi was epic with 94 guests on our land! The following night DJ Sasch from Germany rocked the party with 87 guests. Thanks Team. Please invite your friends and dance, party, play and win at your Club anytime! We’re pumped to continue to share our success with you.”

Glaznah Gassner, CEO of EARN and BOTS, and Board Member of FUN, commented, “It is a real pleasure to take part in the management of a successful company. I was expecting that FUN revenues would grow from month to month (I’ve ensured that before joining FUN’s management), but I was really impressed by the *additional* boost FUN got from the press releases, SLCapEx announcements and IPO! With the company’s long successful history I’m just happy to own FUN’s shares and proud to be a Board member.”

KariAnne Starsmith, President of STUDIO 777, explained, “This was an extraordinary time with national and international media covering the IPO. While we cannot guarantee results, our guidance and experience is we’ve reached a new revenue plateau that we are confident will continue. We are aggressively beginning to execute on the projects and concepts we introduced in the IPO application and look forward to continued sustained growth. We’d like to thank Skip Oceanlane, Capital Exchange and CERC for their support, along with our Shareholders, Team and Partners. More FUN to come!”

In other breaking news, FUN and EARN announced today that Luke Slingshot, CEO of FUN, has joined the Board of Directors of EARN with a focus on marketing and product development. Story at: http://slcapex.com/home/story/EARN/8325

STUDIO 777 (FUN) 2014 2nd Quarter Financial Statement **(June 1 – June 30)

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 (1)
Scripted objects L$250,000
Intellectual Property L$3,000,000 (2)
Transferable Objects L$100,000
Cash L$7,911,968
Goodwill L$3,500,000 (3)
Total L$45,261,968

(1) The value of our Games, Contest Boards and Equipment increased proportionally with our revenue. Asset value was determined just as CapEx did in our IPO application.

(2) We created, produced and launched a Website, Twitter feed, and other social media accounts.

(3) Because of our five years of operations, our continuing growth and the international marketing and publicity we received during the IPO, we believe that our Goodwill is conservatively 10% of our total capitalization of L$30,000,000.

LIABILITIES 0

SHAREHOLDERS EQUITY L$45,261,968

Cash Flow

Operations

STARTING L$ BALANCE L$2,000,000 (4)

(4) Non-dividend attributable revenue; working cash and reserve fund. This was our Cash on Hand June 1, prior to the completion of the IPO.

REVENUE L$15,148,396 (5)

(5) As indicated in the IPO Application, “Please note that many details related to skill gaming operations are confidential and proprietary. Some are covered under Non-Disclosure Agreements. We will provide as much information as possible but for competitive reasons figures won’t be broken out.”

EXPENSE

Land L$72,000
Donations L$75,000
Staff L$250,000
Events and Comps L$372,600
Marketing L$1,240,262
Games, contests, incentives L$13,533,974
Total L$14,643,836

PROFIT L$504,560

Percentage to Dividend (6): 70%
Dividends to Shareholders L$353,192
Retained Earnings L$151,368

(6) In accordance with our IPO application, our Board of Directors has established that our dividend policy is intended to be that shareholders will receive 70% of the Company’s monthly profits.

ENDING BALANCE L$2,151,368

Restricted

STARTING RESTRICTED BALANCE L$5,760,600 IPO Proceeds (7)
ENDING RESTRICTED BALANCE L$5,760,600

(7) STUDIO 777’s IPO sold out less than two weeks ago. Hence, the earnings and spending listed above in part relate to pre-IPO activity, and funds raised have not yet been disbursed as discussed in our IPO Application (see http://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$2.26
Earnings Per Share L$0.03
Dividends Per Share L$0.0177
Dividends Paid To Date L$353,192

** STUDIO 777 (FUN) listed on CapEx during June 2014. This is our June 2014 monthly report, but in order to conform to the same time period for all listed companies, this can also be considered our Q2 report.

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/114/93/35 Twitter @Studio777Club and on the web at http://www.Studio777s.com.

ABOUT EARN2LIFE: Earn2Life.com (CAPEX: EARN) is one of the first professional marketing companies in Second Life. Since 2007, with more than 500,000 Second Life residents participating, Earn2Life.com provides advertising, marketing and business research services for owners of virtual business. The services include games, opinion polls, direct marketing and customer behavior analysis tools. Advertisers from all over Second Life use Earn2Life.com to boost the popularity of their ventures and attract new customers. Earn2Life.com maintains the most comprehensive Second Life business directory since 2007. Visit the website for more information about running advertisement campaigns in virtual worlds, and for actual reviews of EARN’s Second Life businesses: http://www.metabizlist.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: lukeFLL@gmail.com, Ms. Starsmith: karianneinsl@gmail.com

SOURCE: STUDIO 777
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