Electronic Game Card Inc. Reports Third Quarter 2009 Earnings

Company's third quarter 2009 revenue increases 38 percent quarter-over-quarter
to $4.2 million

IRVINE, Calif. and LONDON, Nov. 12 /PRNewswire-FirstCall/ -- Electronic Game
Card, Inc. ("EGC") (OTC Bulletin Board: EGMI), today reported financial
results for its third quarter ended September 30, 2009, marking the Company's
eleventh consecutive quarter of both year-over-year and sequential revenue and
profit growth.

The Company reported revenues of $4.2 million, a 39 percent increase over the
prior year third quarter level of $3.0 million and a 38 percent increase over
second quarter 2009 revenues of $3.1 million. The Company's continued revenue
growth reflected repeat business as well as progress in sales within the
promotions market, additional licensing and trial orders of new lines
introduced at the end of last year.

The Company reported comprehensive net income applicable to common
stockholders for the third quarter of $2.9 million or $0.04 per diluted share
versus net income of $1.7 million or $0.03 per diluted share for the third
quarter 2008 and net income of $2.0 million or $0.03 per diluted share for the
second quarter 2009. Third quarter 2009 operating income was $2.5 million
compared to $1.8 million in the comparable period of 2008 and a 38 percent
increase over second quarter 2009.

For the three months ended September 30, 2009, Electronic Game Card's gross
profit on revenue totaled $3.3 million, yielding a gross margin of 78 percent
and representing the eleventh consecutive quarter of gross margin in excess of
the company's target level of approximately 70 percent. The increase in gross
profit reflected a continued growth in license fees, which have lower
associated cost. One of the Company's primary objectives is to manage the
business to maximize gross profit dollars. Consequently, as the Company takes
advantage of future business opportunities, its gross margin may fluctuate due
to varying percentage mix of higher margin licensing revenue versus direct
sales that generates higher revenue at lower margin.

Operating expenses during third quarter 2009 totaled $798,000, an increase of
approximately $274,000 or 52% over third quarter 2008 and $159,000 or 25% over
second quarter 2009. The increase was attributed to the costs associated with
the new management, expanded Board of Directors, expenses related to a
heightened marketing effort, and costs incurred in establishing the Company's
new headquarters in Irvine, California. Operating expenses as a percentage of
revenues fell by 210 basis points to 19 percent over the second quarter.

For the nine months ended September 30, 2009, Electronic Game Card's revenues
increased to $10.2 million, a 31 percent increase compared to revenues of $7.8
million reported during the comparable period in 2008. Comprehensive net
income applicable to common shareholders significantly improved for the
current nine month period to $6.6 million or $0.10 per fully diluted share,
compared to net income for the previous year nine month period of $4.3 million
or $0.07 per fully diluted share.

Cash and equivalents on September 30, 2009 were $12.7 million, an increase of
approximately $4.5 million from year end December 31, 2008 and an increase of
approximately $1.4 million for the June 30, 2009 balance. Accounts receivable
increased approximately $1.0 million over the prior second quarter 2009. The
majority of the other receivables increase was due to inventory prepayments.
At September 30, 2009, the Company's current ratio was 17 to 1. During the
third quarter of 2009, EGC increased investments by $665,000 to $8.1 million
as a result of further investment in software development.

As of September 30, 2009, Electronic Game Card had approximately 68.1 million
shares of common stock outstanding. The Company's weighted average number of
common shares fully diluted totaled 72.2 million (inclusive of the all
options, warrants and the convertible preferred debt). On September 30, 2009,
the Company's stockholder's equity totaled $23.2 million, an increase of $4.7
million from June 30, 2009.

Commenting on the quarterly results, Kevin Donovan, Joint Chairman and CEO of
Electronic Game Card, Inc, said, "A great deal was accomplished during the
third quarter as we continued to add global distribution partners and new
complementary technology platforms. We believe we are putting the pieces into
place that will lead to solid top and bottom line growth in 2010 and beyond."

"We are deeply grieved by the untimely passing of our Executive Chairman, The
Lord Leonard Steinberg, on November 2, 2009. We were fortunate to have the
benefit of his direction over the last 16 months. The Lord Steinberg, during
his extraordinary life, achieved many significant accomplishments and, due to
his personal nature, took great pride and enjoyment not only through his
success, but also with the many close relationships he developed. He devoted
special focus over the past year to develop EGC, a business in which he saw
great prospects and opportunities," stated Kevin Donovan and Eugene
Christensen, Joint Chairmen of Electronic Game Card, Inc. "It is our honor to
continue Leonard's fine work and build this company into an entity that would
have made him proud."

CONFERENCE CALL
Conference Call Details:

Date/Time: Thursday, November 12, 2009--10:00 a.m. (ET)
Telephone Number: 888-713-4217
International Dial-In Number: 617-213-4869
Participant Pass code: 21898631
Internet Access: www.electronicgamecard.com or
www.earnings.com

It is recommended that participants phone-in at least 10 minutes before the
call is scheduled to begin. Participants may pre-register for the call at -
https://www.theconferencingservice.com/prereg/key.process?key=PLLYWRJRM

Pre-registrants will be issued a pin number to use when dialing into the live
call which will provide quick access to the conference by bypassing the
operator upon connection. A replay of the conference call in its entirety will
be available approximately one hour after its completion by dialing
888-286-8010 (U.S.), 617-801-6888 (International) and entering the pass code
89743451 and on the Internet at www.earnings.com.

Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
(212) 681-4108
yvonne@grannusfinancial.com

or

Kevin Donovan
Chief Executive Officer
Electronic Game Card, Inc.
(888) 341-3421
investor.relations@electronicgamecard.com

About Electronic Game Card, Inc.
Electronic Game Card, Inc., (OTCBB: EGMI), develops, produces and markets
innovative games to the promotional industry worldwide, toys and games,
casinos and lottery. The Company's lead product is the EGC Electronic
GameCard(TM), a unique credit card-sized pocket game combining patent and
patent-pending proprietary technology of interactive capability with "instant
win" excitement. The EGC Electronic GameCard(TM), Know-it-All QuizCard(TM),
iQuizCard(TM), and ePLAYCards for Education are completely customizable and
can be programmed to suit a variety of gaming, promotions, and education
applications including skinned to popular licensed intellectual property
brands in a variety of popular cultures in sports, music, movies,
entertainment, fashion, history, geography, and many other genres.

EGMI's client base is across the $100 billion global market of, sales
promotion, education, gaming and casinos, Indian gaming and state and national
lotteries markets. EGMI develops sales and marketing relationships with agents
and distributors globally and currently has agents and distributors in North
America, United Kingdom, Ireland, Mexico, Italy, Sweden, Norway, Denmark,
Finland, South Africa Australia, New Zealand and Japan. For further
information please visit www.electronicgamecard.com

Certain statements in this news release may constitute "forward-looking"
statements within the meaning of section 21E of the Securities and Exchange
Act of 1934. The Company believes that its expectations, as expressed in
these statements are based on reasonable assumptions regarding the risks and
uncertainties inherent in achieving those expectations. These statements are
not, however, guarantees of future performance and actual results may differ
materially. Risk factors are listed in the most recent Annual Report on Form
10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange
Commission.

Financial Statements Follow

ELECTRONIC GAME CARD, INC.
CONSOLIDATED BALANCE SHEETS

September 30, December 31,
2009 2008
------------- ------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $12,746,691 $8,281,899
Marketable securities - 876,186
Accounts receivable 4,297,209 2,757,685
Deposit on inventory 51,833 51,833
Other receivables 1,325,257 120,109
VAT receivable 14,658 25,916
Deferred charges - 38,119
--- ------
Total current assets 18,435,648 12,151,747
---------- ----------

Machinery and equipment 70,794 68,900
Office equipment 60,425 58,078
Furniture and fixtures 1,118 1,017
Less accumulated depreciation (125,088) (106,398)
-------- --------
Net property, plant
and equipment 7,249 21,597
----- ------

Other Assets
Patents 593,111 258,321
Investments 8,087,470 6,497,470
--------- ---------
Total assets $27,123,478 $18,929,135
=========== ===========
LIABILITIES AND SHAREHOLDERS'
EQUITY/(DEFICIT)
Current liabilities:
Accounts payable $769,578 $749,118
Accrued liabilities 285,264 268,748
------- -------
Total current liabilities 1,054,842 1,017,866
Deferred license fees - 279,625
--------- ---------
Total liabilities 1,054,842 1,297,491

Series A 6% convertible
redeemable preferred stock,
$.001 par value, 10,000,000
shares authorized; 2,840,163
and 4,464,628 shares issued
and outstanding at of
September 30, 2009 and
December 31, 2008,
Respectively 2,840,163 4,464,628

Shareholders' equity/(deficit)
Common stock, $.001 par value,
100,000,000 shares authorized;
68,127,921 and 57,137,661 and
shares issued and outstanding
at September 30, 2009 and
December 31, 2008
Respectively 68,128 57,137
Additional paid in capital 36,772,485 33,318,440
Accumulated other
comprehensive loss (1,116,736) (1,015,855)
Accumulated deficit (12,495,404) (19,192,706)
----------- ------------
Total shareholders' equity 23,228,473 13,167,016
---------- ----------
Total liabilities and
shareholders' equity $27,123,478 $18,929,135
=========== ===========

ELECTRONIC GAME CARD, INC.
Consolidated Statements of Operations
(Unaudited)

For the Three For the Nine
Months Ended Months Ended
September 30, September 30,
2009 2008 2009 2008
---------- ---------- ----------- ----------
Revenue $4,238,061 $3,043,566 $10,245,698 $7,823,870
Cost of sales 924,799 744,000 2,163,741 1,905,589
--------- --------- ---------- ---------
Gross profit 3,313,262 2,299,566 8,081,957 5,918,282
--------- --------- ---------- ---------

Operating expenses
Sales and marketing 94,550 13,600 165,696 54,954
General and administrative 256,276 123,639 619,751 451,237
Professional fees 358,219 282,865 936,868 560,014
Salaries and wages 89,047 104,407 245,728 277,397
--------- --------- ---------- ---------
Total operating expenses 798,092 524,511 1,968,043 1,343,602
--------- --------- ---------- ---------

Income from operations 2,515,170 1,775,055 6,113,914 4,574,679

Other income (expense)
Interest income 80,799 87,014 232,932 210,059
Interest expense (50,228) (147,747) (219,313) (443,241)
Gain on sale of investments 154,694 - 569,769 -
--------- --------- ---------- ---------
Total other income (expense) 185,265 (60,733) 583,388 (233,182)
--------- --------- ---------- ---------

Net income $2,700,435 $1,714,322 $6,697,302 $4,341,497

Foreign currency
translation loss (231,331) (28,947) (100,881) (148,015)
Unrealized profit on
marketable securities 388,010 - - 122,900
--------- --------- ---------- ---------

Comprehensive income $2,857,114 $1,685,375 $6,596,421 $4,316,382
========= ========= ========= =========

Net income per common
share ( basic ) $0.04 $0.03 $0.11 $0.08
--------- --------- ---------- ---------

Weighted average number
of shares outstanding
(basic) 65,109,353 52,041,416 63,046,824 51,604,503
---------- ---------- ---------- ----------

Net income per common
share ( diluted ) $0.04 $0.03 $0.10 $0.07
--------- --------- ---------- ---------

Weighted average number
of shares outstanding
(diluted) 72,151,865 65,707,416 69,286,884 64,674,490
---------- ---------- ---------- ----------

SOURCE Electronic Game Card, Inc.

Yvonne L. Zappulla, Managing Director of Grannus Financial Advisors, Inc.,
+1-212-681-4108, yvonne@grannusfinancial.com; or Kevin Donovan, Chief
Executive Officer of Electronic Game Card, Inc., +1-888-341-3421,
investor.relations@electronicgamecard.com