NFFC Update

[Greg Ambrosius]

This is being sent to all participants in the NFC data base as an update on the current situation. Look for it very soon. I am posting it here so that even non-NFFC players get the latest update.

Everyone,

As many of you are aware, we recently learned that a former employee of ours used his access
to our back-end systems to make anomalous lineup changes on behalf of a participant in two of
our NFL playoff fantasy sports contests. While SportsHub understands that it will be subject to
certain inquiry and speculation because of our transparency, our disclosure results from our
voluntary publication of timestamps for each transaction within each of our contests. We
express our thanks to the Ship Chasing crew for its efforts. Based upon our initial internal
investigation, we are taking the appropriate measures. As I hope you can understand, we are as
stunned by these circumstances as you are, and we continue to move forward to remedy the
wrongdoing.

SportsHub takes this matter extremely seriously. Integrity and trust in our people, our company
and our games are paramount to us and our self-reporting, while initially painful is the best
course to regain that trust. We are committed to continuing with our transparency and to
maintain our culture of integrity. For over two decades, NFC has been run with impeccable
integrity by Greg Ambrosius and Tom Kessenich, who remain as dedicated as ever to regaining
the trust of our valued customers. We’ve learned an extraordinarily difficult lesson and are
currently in the process of evaluating all aspects of our fantasy contest operations; including
everything from vetting our employees to ensuring internal controls surrounding game and
finance management will continue to grow stronger to prevent these issues from happening in
the future.

There is still work to be done to determine the full extent of what occurred. To that end, we
have engaged a third party, U.S. Integrity, Inc. (https: www.usintegrity.com) - an industry leader
in integrity gaming investigations and consulting – to investigate and audit our current and prior
contests. Until their investigation is concluded, SportsHub cannot comment further on this
matter. Upon conclusion of the U.S. Integrity investigation, we will disclose their findings and
take appropriate action to remedy this situation. To the extent that the third-party audit
concludes that contest participants have been financially harmed, affected participants will be
made whole. This investigation will take time, and the results will be published as soon as it is
concluded.

In conjunction with the work being done by U.S. Integrity, we will be formalizing our existing
Integrity and Transparency Program. This will be posted to our website as soon as possible. We
will work as quickly as possible to come to a resolution and move forward under the formal
standards of this program.

Sincerely,
Christian Peterson
President
SportsHub Holdings, LLC