Written presentation of Duff & Phelps, LLC

Duff & Phelps Disclaimer

The following pages contain material that is being provided by Duff & Phelps, LLC (“Duff & Phelps”) to the Special Committee (the “Special

Committee”) of the Board of Directors (the “Board”) of FortuNet, Inc. (“FortuNet” or the “Company”) in connection with the Proposed

Transaction, as herein defined.

The accompanying material was, and any Opinion (as defined herein) will be, compiled on a confidential basis for the sole reliance of the Special

Committee in connection with their evaluation of the Proposed Transaction and may not be distributed to any other party, publicly disclosed, or

relied upon for any other purpose without the prior written consent of Duff & Phelps.

Because this material was prepared for use in the context of an oral presentation to the Special Committee, which is familiar with the business and

affairs of the Company, neither the Company nor Duff & Phelps, nor any of their respective legal or financial advisors or accountants, take any

responsibility for the accuracy or completeness of any of the material if used by persons other than the Special Committee.

These materials are not intended to represent an opinion but rather to serve as discussion materials for the Special Committee to review and as a

basis upon which Duff & Phelps may render an opinion.

An opinion would not i) address the merits of the underlying business decision of the Special Committee or the Company or any other party to the

Proposed Transaction to enter into the Proposed Transaction versus any alternative strategy or transaction; ii) constitute a recommendation to

any of the Special Committee, the Board, the Company or any committee thereof, or any other person as to how such person should vote or as to

any other specific action that should be taken in connection with the Proposed Transaction; or iii) create any fiduciary duty on Duff & Phelps’ part

to any party.

The information utilized in preparing this presentation was obtained from the Company and public sources. Any estimates and projections

contained herein have been prepared by the management of the Company or their financial or legal advisors and involve numerous and significant

subjective determinations, which may or may not prove to be correct. No representation or warranty, expressed or implied, is made as to the

accuracy or completeness of such information and nothing contained herein is, or shall be relied upon as, a representation, whether as to the past

or the future. Duff & Phelps did not attempt to independently verify such information.

No selected company or selected transaction used in our analysis is directly comparable to the Company or the Proposed Transaction.

Executive Summary

The Engagement

The Special Committee has engaged Duff & Phelps as its independent financial advisor in connection with the Proposed Transaction, which may

include providing an opinion (the “Opinion”) to the Special Committee as to the fairness, from a financial point of view, to the stockholders of

the Company, other than the Trust (defined below) and its affiliates, of the consideration to be received by such stockholders in the

contemplated transaction described herein (the “Proposed Transaction”).

Any Opinion will not address the fairness of the impact of the Proposed Transaction on any particular stakeholder of the Company, the fairness

of the Proposed Transaction to any specific stakeholder of the Company, or the fairness of the contemplated procedures for effectuating the

Proposed Transaction.

The Proposed Transaction

The

Proposed

Transaction

involves

the

tender

offer

Yuri

Itkis

Gaming

Trust

1993

(the

“Trust”)

acquire

the

remaining

25.22%

stake

in the Company for $6.27 million in cash, or $2.25 per share (the “Offer Price”). The Trust currently owns 74.78% of the outstanding

shares of common stock of the Company.

The Trust has indicated that its offer is conditioned upon the tender of a sufficient number of shares of common stock to cause the Trust to

own 90% of the outstanding shares. If that condition is satisfied, the Trust has indicated that it intends to acquire the remaining shares not

already

owned

through

short

form

cash

merger

the

same

per

cash

price

paid

the

tender

offer.

Background to the Proposed Transaction

November

23,

2009,

the

Company’s

CEO

and

sole

trustee

and

beneficiary

the

Trust,

Yuri

Itkis,

sent

notice

the

Board

Directors

the Trust’s intention to commence a tender offer for all the shares not already owned by the Trust (representing 25.22% of the

total shares of the Company). The indicated offer price on November 23, 2009 was $1.70 per share.

On January 15, 2010, the Trust commenced a tender offer for the 25.22% of the total shares of the Company not already owned by the Trust

for $2.25 per share, representing a 32% increase over the November 23, 2009 indicated offer price.

Executive Summary

Scope of Analysis

In connection with our analysis, we have used generally accepted valuation and analytical techniques and made such reviews, analyses

and inquiries as we have deemed necessary and appropriate under the circumstances.

Duff & Phelps also took into account our assessment of general economic, market and financial conditions, as well as our experience in

securities and business valuation, in general, and with respect to similar transactions, in particular.

Duff & Phelps’ procedures, investigations, and financial analysis with respect to the preparation of this presentation included, but were

not limited to, the items summarized below:

–

Discussed the operations, financial condition, liquidity needs, future prospects and projected performance of the Company, and

the Proposed Transaction with Company management;

–

Reviewed certain audited and internal financial statements and other financial and operating data concerning the Company,

which the Company identified as being the most current available;

–

Reviewed certain financial forecasts prepared by the management of the Company;

–

Reviewed the Offer to Purchase for Cash All Outstanding Shares of Common Stock of FortuNet, Inc. at $2.25 Per Share by The

Yuri Itkis Gaming Trust of 1993 and YI Acquisition Corp. filed with the Securities and Exchange Commission on Form SC TO-T

January 15, 2010 (the “Offer to Purchase”);

–

Reviewed the historical and current trading prices and trading volume of publicly traded common stock of companies that we

deemed relevant;

–

Compared the financial performance of the Company with that of certain publicly traded companies that we deemed relevant;

–

Compared the financial performance of the Company to financial terms, to the extent publicly available, of certain business

combination transactions that we deemed relevant; and

–

Conducted such other analyses and considered such other factors as we deemed appropriate.

Executive Summary

Assumptions, Qualifications and Limiting Conditions

In performing its analyses with respect to the Proposed Transaction, Duff & Phelps, with your consent, has:

–

Relied upon the accuracy, completeness, and fair presentation of all information, data, advice, opinions and representations

obtained from public sources or provided to it from private sources, including Company management, and did not independently

verify any such information;

–

Assumed that any estimates, evaluations, forecasts and projections furnished to Duff & Phelps were reasonably prepared and

based upon the best currently available information and good faith judgment of the person furnishing the same;

–

Assumed that the face value of the auction rate securities on the Company’s most recent balance sheet approximates fair value;

–

Assumed, without verification, that the final versions of all documents reviewed by Duff & Phelps in draft form conform in all

material respects to the drafts reviewed;

–

Assumed that all information supplied to Duff & Phelps and information and statements made in the Offer to Purchase are

substantially accurate;

–

Assumed that all of the conditions required to implement the Proposed Transaction will be satisfied and that the Proposed

Transaction will be completed in accordance with the Offer to Purchase without any amendments thereto or any waivers of any

terms or conditions thereof;

–

Relied upon the fact that the Company has been advised by counsel as to all legal matters with respect to the Proposed

Transaction, including whether all procedures required by law to be taken in connection with the Proposed Transaction have been

duly, validly and timely taken; and

–

Assumed that all governmental, regulatory or other consents and approvals necessary for the consummation of the Proposed

Transaction will be obtained without any adverse effect on the Company or the contemplated benefits expected to be derived in

the Proposed Transaction.

Executive Summary

Value Conclusions

Duff

Phelps

concluded

enterprise

value

range

for

FortuNet

$15.30

million

$18.60

million.

To arrive at an aggregate equity value for FortuNet, we added cash and the face value of investment securities (auction rate securities) to the

concluded enterprise value. The result was an aggregate equity value for FortuNet

of $21.95 million to $25.25 million, with a midpoint of

$23.40

million.

This

resulted

per

value

for

FortuNet

ranging

from

$1.99

$2.28,

with

midpoint

$2.12.

Valuation Conclusions

Offer Price

($ in thousands)

Low

Midpoint

High

Discounted Cash Flow Analysis

$14,250

$15,300

$17,150

Market Approach

$16,300

$18,150

$20,000

Enterprise Value Conclusion

$15,300

$16,750

$18,600

$18,222

Plus:

Cash

and

Cash

Equivalents

3,650

Plus:

Investment

Securities

(Long-Term)

3,000

Equity Value

$21,950

$23,400

$25,250

$24,872

per share -

11,054,011 fully diluted shares

$1.99

$2.12

$2.28

$2.25

Implied Multiples (Excluding Public Costs)

2010 EBITDA

$4,647

3.3x

3.6x

4.0x

3.9x

2010 EBIT

$2,332

6.6x

7.2x

8.0x

7.8x

2010

Net

Income

$1,632

9.4x

10.3x

11.4x

11.2x

Implied Multiples (Including Public Costs)

2010 EBITDA

$4,163

3.7x

4.0x

4.5x

4.4x

2010 EBIT

$1,848

8.3x

9.1x

10.1x

9.9x

2010

Net

Income

$1,294

11.8x

12.9x

14.4x

14.1x

12/31/2009 estimated balance sheet provided by Management.

Public costs include accounting, legal, and professional services, directors fees and other public company related costs. Public costs were estimated by management

at $484k for 2010.

Represents tax-effected operating income, excluding interest and investment income. Cash and investment securities excluded from the P/E multiple calculation.

Business & Financial Overview

FortuNet

Common Stock Overview

January

15,

2010,

FortuNet

had

11,054,011

common

stock

issued

and

outstanding.

As part of its analysis, Duff & Phelps analyzed the historical daily stock prices and daily trading volume levels for the Company’s common

stock for the latest twelve months.

The Company’s common shares currently trade on the NASDAQ Capital Market under the ticker “FNET.”

FNET’s

stock traded 252 days during the last year, out of a possible 252 total trading days between January 15, 2009 and January 15, 2010.

The top holder of common stock is the Trust, whose sole trustee and beneficiary is Yuri Itkis, the CEO of FortuNet. The Trust holds about

8,266,500 shares outstanding, or 74.78% of total shares outstanding.

Business & Financial Overview

FortuNet Common Stock Overview (continued)

Common Stock Data

Offer Price

$2.25

Unaffected Stock Price:

Stock Price 1-Day Prior to Announcement

$1.28

Stock Price 1-Week Prior to Announcement

$1.31

Stock Price 4-Weeks Prior to Announcement

$1.22

Implied Premium:

Premium to Stock Price 1-Day Prior to Announcement

75.8%

Premium to Stock Price 1-Week Prior to Announcement

71.8%

Premium to Stock Price 4-Weeks Prior to Announcement

84.4%

Common Shares Outstanding (000s)

11,054

52-Week Average Daily Trading Volume (000s)

Average Daily Trading Volume / Public Float

2.7%

Public Float

23.8%

Institutional Ownership

2.3%

Business & Financial Overview

FortuNet

Common Stock Price and Volume

December 29, 2008 –

January 15, 2010

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

4.00

4.50

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

- Board of Directors declares special cash dividend of $2.50/share to shareholders of record date of April 24, 2009 and a payment date of May 4, 2009.

- Company pays $2.50 cash dividend.

- Company receives notice from NASDAQ that for 30 consecutive days the Company's common stock has not maintained the minimum market value.

The Company was given until December 14, 2009 to come into compliance with the NASDAQ listing rules. Temporary unexplained change in FortuNet stock price and volume.

- CEO Yuri Itkis sent notice to Board of Directors of the Trust's intention to commence a tender offer for all the shares outstanding not already owned

by the Trust. The proposed offer price is $1.70 per share. The Trust currently owns 74.78% of the outstanding shares of common stock of FortuNet.

- The Trust commenced a tender offer for all the shares outstanding not already owned by the Trust for $2.25 per share. The increased offer price

represents a 32% increase over the originally announced price of $1.70 per share.

April

17,

2009

May

2009

September

15,

2009

November

23,

2009

January

15,

2010

Business & Financial Overview

Financial Performance

Financial Performance Summary

($ in thousands)

LTM

3-yr CAGR

2004A

2005A

2006A

2007A

2008A

9/30/2009A

2009E

2010E

Total Revenue

$14,327

$14,685

$16,460

$16,489

$16,019

$16,055

$16,105

$16,615

2.9%

Growth

2.5%

12.1%

0.2%

-2.8%

2.0%

0.5%

3.2%

Gross Profit

$13,798

$14,263

$16,069

$15,816

$15,294

$15,009

$15,067

$15,445

2.4%

Margin

96.3%

97.1%

97.6%

95.9%

95.5%

93.5%

93.6%

93.0%

Adj. EBITDA

$5,910

$5,901

$4,182

$5,850

$4,986

$4,337

$4,042

$4,163

-5.5%

Margin

41.3%

40.2%

25.4%

35.5%

31.1%

27.0%

25.1%

Public Company Add-Backs

$1,061

$534

$343

$384

$552

$484

Adj. EBITDA (excluding public costs)

$5,910

$5,901

$5,244

$6,385

$5,329

$4,721

$4,594

$4,647

-3.3%

Margin

41.3%

40.2%

31.9%

38.7%

33.3%

29.4%

28.5%

28.0%

Adj. EBIT Adj. EBITDA (excluding public costs)

$3,758

$3,495

$2,980

$4,479

$3,254

$2,598

$2,590

$2,332

-2.4%

Margin

26.2%

23.8%

18.1%

27.2%

20.3%

16.2%

16.1%

14.0%

Capital Expenditures

$3,011

$1,774

$3,411

$3,373

$1,847

$909

$1,050

$3,000

% of Revenues

21.0%

12.1%

20.7%

20.5%

11.5%

5.7%

6.5%

18.1%

Adjusted for certain one-time items as identified by Company management.

Provided by management.

Valuation Analysis

Discounted

Cash

Flow

Analysis

–

Key

Assumptions

•The

Company

provided

Duff

Phelps

with

forecasted

statement

operations

for

the

Company

for

the

fiscal

year

ending

December

31,

2010.

Key assumptions in the fiscal 2010 forecast include:

Total Revenue Growth: 3.2%

EBITDA Margin (excluding public company costs): 28.0%

Net Working Capital: approximately 19.0% revenue

Capital Expenditures: $1,500,000 of maintenance capital expenditures and $1,500,000 planned expenditure for a bingo card printer

•Beyond 2010, we compiled financial projections for the Company based on Company management’s 2010 budget, statements by Company

management

regarding

their

plans

and

intentions,

our

investigation

and

understanding

the

business,

and

such

other

information

deemed

appropriate. Key assumptions include:

Scenario 1:

Total Revenue Growth: 2.5% annually for 2011 through 2019

EBITDA Margin (excluding public company costs): constant at 28.0%

Capital expenditures: Estimated at approximately 10% of revenue

Interest and investment income from cash and investment securities excluded

Scenario 2:

Total Revenue Growth: 3.0% annually for 2011 through 2019

EBITDA Margin (excluding public company costs): constant at 28.0%

Capital expenditures: Estimated at approximately 10% of revenue

Interest and investment income from cash and investment securities excluded

•We estimated the terminal value of the Company by utilizing commonly accepted present value of perpetuity formulas. This continuing value is

equivalent to the present value of all cash flows after the projection period. Our terminal value calculations were based on a terminal growth rate

of 2.5% for Scenario 1 and a 3.0% growth rate for Scenario 2.

•Duff

Phelps

discounted

the

discrete

cash

flows

and

terminal

value

weighted

average

cost

capital

rates

ranging

from

15.0%

17.0%.

Valuation Analysis

Discounted

Cash

Flow

Analysis

–

Scenario 1

•Our DCF analysis yielded enterprise value ranges for FortuNet

of $14.25 million to $16.50 million under Scenario 1. Highlights of the Scenario 1

DCF analysis are presented below.

Discounted Cash Flow Analysis

($ in thousands)

2009E

2010E

2011E

2012E

2013E

2014E

2015E

2019E

10-Year CAGR

Revenue

$16,105

$16,615

$17,031

$17,456

$17,893

$18,340

$18,799

$20,750

2.6%

Growth

0.5%

3.2%

2.5%

EBITDA

4,594

4,647

4,763

4,882

5,004

5,129

5,257

5,803

2.4%

EBITDA Margin

28.5%

28.0%

Earnings Before Interest and Taxes

2,332

2,712

2,793

2,875

2,960

3,047

3,698

Pro Forma Cash Taxes @ 30%

(700)

(814)

(838)

(863)

(888)

(914)

(1,109)

Net Operating Profit After Tax

1,632

1,898

1,955

2,013

2,072

2,133

2,588

Depreciation

2,315

2,051

2,089

2,129

2,169

2,210

2,106

Capital Expenditures

(3,000)

(1,733)

(1,771)

(1,810)

(1,851)

(1,892)

(2,068)

(Increase) Decrease in Working Capital

(97)

(79)

(81)

(83)

(85)

(87)

(96)

Free Cash Flow

850

2,138

2,192

2,248

2,305

2,364

2,530

Terminal Growth Rate

2.5%

Weighted Average Cost of Capital

17.00%

16.00%

15.00%

Low

Midpoint

High

Enterprise Value Range

$14,250

$15,300

$16,500

Implied

Multiples

(Excluding

Public

Costs)

2010 EBITDA

$4,647

3.1x

3.3x

3.6x

2010 EBIT

$2,332

6.1x

6.6x

7.1x

2010 Net Income

$1,632

8.7x

9.4x

10.1x

Implied

Multiples

(Including

Public

Costs)

2010 EBITDA

$4,163

3.4x

3.7x

4.0x

2010 EBIT

$1,848

7.7x

8.3x

8.9x

2010 Net Income

$1,294

11.0x

11.8x

12.8x

Excluding interest and investment income

Valuation Analysis

Discounted

Cash

Flow

Analysis

–

Scenario

•Our DCF analysis yielded enterprise value ranges for FortuNet

$14.70 million to $17.15 million under Scenario 2. Highlights of the Scenario 2

DCF analysis are presented below.

Discounted Cash Flow Analysis

($ in thousands)

2009E

2010E

2011E

2012E

2013E

2014E

2015E

2019E

10-Year CAGR

Revenue

$16,105

$16,615

$17,114

$17,627

$18,156

$18,701

$19,262

$21,679

3.0%

Growth

0.5%

3.2%

3.0%

EBITDA

4,594

4,647

4,786

4,930

5,078

5,230

5,387

6,063

2.8%

EBITDA Margin

28.5%

28.0%

Earnings Before Interest and Taxes

2,332

2,728

2,825

2,925

3,029

3,135

3,886

Pro Forma Cash Taxes @ 30%

(700)

(818)

(848)

(878)

(909)

(941)

(1,166)

Net Operating Profit After Tax

1,632

1,909

1,978

2,048

2,120

2,195

2,720

Depreciation

2,315

2,058

2,105

2,152

2,201

2,252

2,177

Capital Expenditures

(3,000)

(1,740)

(1,786)

(1,834)

(1,883)

(1,934)

(2,151)

(Increase) Decrease in Working Capital

(97)

(95)

(98)

(101)

(104)

(107)

(120)

Free Cash Flow

850

2,133

2,198

2,265

2,335

2,406

2,626

Terminal Growth Rate

3.0%

Weighted Average Cost of Capital

17.00%

16.00%

15.00%

Low

Midpoint

High

Enterprise Value Range

$14,700

$15,800

$17,150

Implied

Multiples

(Excluding

Public

Costs)

2010 EBITDA

$4,647

3.2x

3.4x

3.7x

2010 EBIT

$2,332

6.3x

6.8x

7.4x

2010 Net Income

$1,632

9.0x

9.7x

10.5x

Implied

Multiples

(Including

Public

Costs)

2010 EBITDA

$4,163

3.5x

3.8x

4.1x

2010 EBIT

$1,848

8.0x

8.5x

9.3x

2010 Net Income

$1,294

11.4x

12.2x

13.3x

Excluding interest and investment income

Valuation Analysis

Selected Public Company Analysis – Methodology

Duff & Phelps reviewed the current trading multiples of six publicly traded companies that Duff & Phelps determined to be relevant to

its analysis. Duff & Phelps analyzed the LTM and projected EBITDA, EBIT and Net Income for each of the publicly traded companies. Duff

& Phelps then analyzed the trading multiples of enterprise value (“EV”) to EBITDA and EBIT and equity value to Net Income.

We selected the following publicly traded companies for our analysis:

–

Bally Technologies, Inc., GameTech International Inc., International Game Technology, Multimedia Games Inc., Shuffle Master Inc.,

and WMS Industries Inc.

Duff & Phelps reviewed the cash balances as a percent of the market capitalization of the six publicly traded companies. Based on this

review, GameTech’s P/E multiple was adjusted to exclude cash and interest income due to its high cash balance to equity value ratio

relative to the other selected public companies. This adjustment was made in order to determine appropriate net income multiples to

apply to FortuNet, excluding interest and investment income.

Selected M&A Transaction Analysis – Methodology

Duff & Phelps selected merger and acquisition transactions involving target companies that Duff & Phelps believed to be relevant to its

analysis. Duff & Phelps computed the LTM Revenue and EBITDA for each of the target companies (where publicly disclosed). Duff &

Phelps then calculated the implied enterprise value for each transaction to the target’s respective Revenue and EBITDA.

Duff & Phelps selected 12 precedent transactions.

None of the selected public companies nor those companies involved in the selected transactions in the following analysis are, of

course, identical to the Company. Accordingly, a complete valuation analysis cannot be limited to a quantitative review of the

selected companies and selected transactions. Rather, the analysis involves complex considerations and judgments concerning

differences in financial and operating characteristics of such companies and targets, as well as other factors that could affect their

value relative to the Company.

Valuation Analysis

Selected Public Company Analysis

SELECTED PUBLIC COMPANY ANALYSIS

($ in millions)

COMPANY INFORMATION

MARKET DATA

Stock Price as a Multiple of

Enterprise Value as a Multiple of

Company Name

Stock Price on

1/15/10

% of 52-Wk

High

LTM EPS

2010 EPS

LTM

EBITDA

2010

EBITDA

LTM EBIT

2010 EBIT

Bally Technologies, Inc.

$45.00

100.8%

$2,753

20.5x

17.1x

9.7x

8.8x

13.2x

11.2x

GameTech International Inc.

1.37

68.5

3.7

3.3

14.8

7.7

International Game Technology

20.29

88.0

8,033

26.4

22.4

11.3

9.5

18.4

14.7

Multimedia Games Inc.

5.70

88.6

218

4.0

3.2

Shuffle Master Inc.

9.48

97.3

593

23.2

10.8

8.9

18.8

16.4

WMS Industries Inc.

43.46

88.9

2,525

27.6

21.5

10.9

9.1

17.6

13.8

Mean

88.7%

$2,361

24.8x

17.6x

8.4x

7.1x

16.6x

12.7x

Median

88.8%

$1,559

26.4x

21.5x

10.3x

8.8x

17.6x

13.8x

Note 1: Projections as of calendar year, with the exception of GameTech which is as of its fiscal year end, November 1, 2010.

Note 2: GameTech 2010 P/E multiple adjusted to exclude cash / investments and estimated interest / investment income.

LTM = Latest Twelve Months

CAGR = Compounded Annual Growth Rate

Enterprise Value = (Market Capitalization) + (Debt + Preferred Stock + Minority Interest) - (Cash & Equivalents)

EBITDA = Earnings Before Interest, Taxes, Depreciation and Amortization

Source: Bloomberg, Capital IQ, SEC filings

Valuation Analysis

Selected M&A Transaction Analysis

SELECTED TRANSACTION ANALYSIS

($ in millions)

Announced

Target Name

Target Business Description

Acquirer Name

Enterprise

Value

LTM

Revenue

LTM EBITDA

EBITDA

Margin

LTM EBITDA

Growth

EV / Revenue EV / EBITDA

P/E

4/30/2008

Sanwa Denshi Co. Ltd.

Manufactures parts for arcade gaming

Kyosha

Co. Ltd.

JPY 496.0

JPY 1,150.0

0.43x

3/4/2008

Cyberview

Technology, Inc.

Develops downloadable server-based gaming systems

International Game Technology

£30.1

£26.5

£0.9

3.3%

-11.4%

1.14x

34.1x

2/1/2008

Boss Media AB

Engages in the development and supply of e-gaming software

Medströms

Invest AB; GTECH

Corporation

$1,056.2

$312.3

$106.2

34.0%

16.5%

3.38x

9.9x

33.3x

5/1/2007

Oberthur

Gaming Technologies

Corp.

Engages in printing, supplying and distributing lottery tickets

Scientific Games Corp.

$102.7

$125.7

0.82x

10/30/2006

Empire Interactive plc

Engages in the developing and publishing of entertainment

software

Silverstar

Holdings Ltd.

$15.5

$21.2

-$1.8

-8.3%

0.73x

8/30/2006

Summit Amusement &

Distributing, Ltd.

Designs, develops, and manufactures video gaming machines

GameTech

International Inc.

$39.7

$25.0

1.59x

7/25/2006

Radica Games Ltd.

Engages in the development of electronic entertainment

products

Mattel Inc.

$185.8

$148.7

$11.9

8.0%

2.1%

1.25x

15.6x

19.2x

6/15/2006

Venture Catalyst, Inc.

(nka:Mariposa

Software, Inc.)

Provides consulting services for the gaming and hospitality

industry

International Game Technology

$14.6

$9.9

$0.3

2.9%

1.48x

1/10/2006

GTECH Holdings Corp.

Provides gaming and technology solutions

Lottomatica

S.p.A

(nka:Lottomatica

Group S.p.A.)

$4,736.2

$1,274.4

$498.1

39.1%

6.8%

3.72x

9.5x

23.4x

11/14/2005

StarGames

Pty. Limited

Engages

manufacturing

and

marketing

electronic

gaming

machines primarily to casinos

Shuffle Master Inc.

$154.5

$71.4

$11.1

15.6%

-4.6%

2.16x

13.9x

22.1x

6/10/2005

XN Checkout Holdings plc

Offers

information

technology

hardware,

sofware

and

services

the gaming and leisure sectors

Torex

Retail PLC

$128.9

$33.2

$3.8

11.5%

3.88x

33.8x

1/21/2005

Virtgame

Corp.

Provides networked gaming software to the gaming and lottery

industries

Mikohn

Gaming

Corp.

(nka:Progressive

Gaming

International Corporation)

$12.7

$0.4

-$2.2

High

39.1%

16.5%

3.88x

34.1x

33.3x

Low

-8.3%

-11.4%

0.43x

9.5x

19.2x

Mean

13.3%

1.9%

1.87x

19.5x

24.5x

Median

9.8%

2.1%

1.48x

14.7x

22.8x

Source: Capital IQ and company filings

Valuation Analysis

Summary of the Market Approach

selecting

multiples,

analyzed

GameTech

International,

the

only

company

that

competes

directly

with

FortuNet,

well

the

selected

public

companies

taken

group,

that

represents

the

broader

gaming

equipment

industry,

and

taking

into

consideration

risk

factors

that

impact

multiples,

such

size,

profitability

and

future

growth

prospects.

The summary of the Market Approach based on our analysis of Selected Public Companies and Selected M&A Transactions can be found

below.

($ in thousands)

Metric

Public Company

Median

Transaction

Median

Selected

Multiple

Company

Performance

Enterprise Value Indications

LTM

Adj.

EBITDA

(excluding

public

costs)

3.7x

11.3x

10.3x

14.7x

4.0x

$4,721

$18,883

2010 EBITDA

3.3x

9.5x

8.8x

4.0x

$4,647

$18,587

LTM

Adj.

EBIT

(excluding

public

costs)

13.2x

18.8x

17.6x

7.0x

$2,598

$18,183

2010 EBIT

7.7x

16.4x

13.8x

7.0x

$2,332

$16,322

LTM Net Income

1,2

20.5x

27.6x

26.4x

11.0x

$1,818

$20,001

2010 Net Income

1,2

3.2x

23.2x

21.5x

11.0x

$1,632

$17,954

Concluded Enterprise Value Range

$16,300

$20,000

Implied Multiples (Excluding Public Costs)

2010 EBITDA

$4,647

3.5x

4.3x

2010 EBIT

$2,332

7.0x

8.6x

2010 Net Income

$1,632

10.0x

12.3x

Implied Multiples (Including Public Costs)

2010 EBITDA

$4,163

3.9x

4.8x

2010 EBIT

$1,848

8.8x

10.8x

2010 Net Income

$1,294

12.6x

15.5x

Public Company Range

Public costs include accounting, legal, and professional services, directors fees and other public company related costs. Public costs estimated by

management at $384k for LTM and $484k for 2010.

Excluding interest and investment income.

Selected Public Company / Transaction Analysis Summary

Conclusion

Equity Value Conclusion

Duff

Phelps

concluded

enterprise

value

range

for

FortuNet

$15.30

million

$18.60

million.

arrive

aggregate

equity

value

conclusion

for

FortuNet,

added

cash

and

the

face

value

investment

securities

(auction

rate

securities)

the

concluded

enterprise

value.

The

result

was

aggregate

equity

value

for

FortuNet

$21.95

million

$25.25

million,

with

midpoint

$23.40

million.

This

results

concluded

per

value

range

for

FortuNet

$1.99

$2.28,

with

midpoint

$2.12.

Valuation Conclusions

Offer Price

($ in thousands)

Low

Midpoint

High

Discounted Cash Flow Analysis

$14,250

$15,300

$17,150

Market Approach

$16,300

$18,150

$20,000

Enterprise Value Conclusion

$15,300

$16,750

$18,600

$18,222

3,650

3,000

Equity Value

$21,950

$23,400

$25,250

$24,872

per share -

11,054,011 fully diluted shares

$1.99

$2.12

$2.28

$2.25

Implied Multiples (Excluding Public Costs)

2010 EBITDA

$4,647

3.3x

3.6x

4.0x

3.9x

2010 EBIT

$2,332

6.6x

7.2x

8.0x

7.8x

$1,632

9.4x

10.3x

11.4x

11.2x

Implied Multiples (Including Public Costs)

2010 EBITDA

$4,163

3.7x

4.0x

4.5x

4.4x

2010 EBIT

$1,848

8.3x

9.1x

10.1x

9.9x

$1,294

11.8x

12.9x

14.4x

14.1x

12/31/2009 estimated balance sheet provided by Management.

Public costs include accounting, legal, and professional services, directors fees and other public company related costs. Public costs were estimated by management

at $484k for 2010.

Represents

tax-effected

operating

income,

excluding

interest

and

investment

income.

Cash

and

investment

securities

excluded

from

the

P/E

multiple

calculation.

Plus:

Cash

and

Cash

Equivalents

Plus:

Investment

Securities

(Long-Term)

2010

Net

Income

2010

Net

Income

Premiums Paid Analysis

Going private transactions where the majority shareholder purchases the remaining outstanding shares reflects 70 transactions.

Public-to-private transactions reflects 676 transactions.

Premiums Paid Analysis -

Going Private Transactions -

Last 5 Years

Majority Shareholder Purchases

Remaining Outstanding Shares

Public-to-Private Transactions

One-Day Before

Announcement Date %

One-Week Before

Announcement Date %

Four-Weeks Before

Announcement Date %

One-Day Before

Announcement Date %

One-Week Before

Announcement Date %

Four-Weeks Before

Announcement Date %

Overall

Median

17.1%

17.9%

24.0%

19.9%

21.8%

24.7%

Overall

Mean

25.9%

26.1%

39.1%

33.9%

34.2%

39.0%

Fortunet

Implied $2.25 Offer Premiums

75.8%

71.8%

84.4%

75.8%

71.8%

84.4%

Notes:

Transactions announced, closed, or effective from 12/31/2004 1/12/2010

Source: Capital IQ

Premiums Paid Analysis

Premiums Paid Analysis - Controlling Interest Transactions

2005

2006

2007

2008

2009

FortuNet

Median Premiums Including Discounts

Median Premium

One-Day Before Announcement Date %

16.5%

728

17.0%

975

16.8%

1154

24.8%

775

24.6%

673

75.8%

One-Week Before Announcement Date %

18.7%

729

19.7%

978

19.3%

1154

28.3%

777

26.9%

673

71.8%

Four-Weeks Before Announcement Date %

23.8%

731

23.7%

979

22.8%

1157

27.8%

778

35.5%

673

84.4%

Median Premiums Excluding Discounts

Median Premium

One-Day Before Announcement Date %

20.5%

623

20.8%

841

20.8%

981

31.6%

643

35.0%

542

75.8%

One-Week Before Announcement Date %

22.9%

634

23.4%

854

23.9%

984

36.4%

637

37.8%

543

71.8%

Four-Weeks Before Announcement Date %

28.1%

635

26.8%

979

28.3%

985

38.3%

625

45.3%

555

84.4%

Notes:

Figures in red represent number of transactions included.

Source: Capital IQ

Hypothetical Liquidation Analysis

Note: Assumptions provided by Company Management.

Liquidation Analysis

Assets

9/30/2009

Balance Sheet

Net

Realizable

Value

Cash and cash equivalents

$3,449

100.0%

$3,449

Accounts receivable

1,256

100.0%

$1,256

Refundable income taxes

633

100.0%

$633

Inventories

2,198

25.0%

$550

Prepaid expenses

150

0.0%

Property and equipment

2 Printing presses

2,000

25.0%

$500

Units

2,819

50.0%

$1,410

Total property and equipment

4,819

39.6%

$1,910

Investment securities (long-term)

3,050

80.0%

$2,440

Other assets

0.0%

Deferred tax asset

874

50.0%

$437

Total Assets

16,457

64.9%

$10,674

Liabilities

Accounts payable

186

100.0%

$186

Commissions payable

116

100.0%

$116

Accrued expenses

313

100.0%

$313

Total Liabilities

614

$614

Liquidation Costs

Employee Costs

$900

Lease Costs

$950

Legal and other liquidation costs

$200

Less: Liquidation costs

$2,050

Liquidation Value

$8,010