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An Emerging Mobile Gaming Leader Ticker: TAPM SEPTEMBER 2015 CONFIDENTIAL

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Page 1: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

An Emerging Mobile Gaming Leader

Ticker: TAPM

SEPTEMBER 2015CONFIDENTIAL

Page 2: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

To the extent that statements contained in this presentation are not descriptions of historical facts regarding Tapinator, they are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will” “expect,” “anticipate,” “estimate,” “intend,” and similar expressions (as well as other words or expressions referencing future events, conditions or circumstances) are intended to identify forward-looking statements. Examples of forward-looking statements contained in this presentation include, among others, statements regarding the quoting and trading of our common stock and our expectations regarding our development and monetization plans for our mobile games. Forward-looking statements in this release involve substantial risks and uncertainties that could cause the development and monetization of our mobile games, future results, performance or achievements to differ significantly from those expressed or implied by the forward- looking statements. Such risks and uncertainties include, among others, the uncertainties inherent in the hits nature of the mobile gaming business. Tapinator

undertakes no obligation to update or revise any forward-looking statements. The quoting and trading of the company’s common stock on the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system is often thin and characterized by wide fluctuations in trading prices, due to many factors that may have little to do with the company’s operations or business prospects. As a result, there may be volatility in the market price of the shares of the company’s common stock for reasons unrelated to operating performance. Moreover, the OTC Bulletin Board and the OTC Market Group’s OTC Link quotation system are not stock exchanges, and trading of securities on them is often more sporadic than trading of securities listed on the NASDAQ Stock market or another securities exchange. Accordingly, stockholders may have difficulty reselling any of their shares. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of the company in general, see Tapinator’s disclaimers, which are available here: http://www.tapinator.com/disclaimers

FORWARD LOOKING STATEMENTS

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Page 3: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

W H AT W E D OAn Emerging Mobile Gaming Leader

We Design, Develop,

& Publish Original

Mobile Games for the

iOS, Android, and

Amazon platforms.

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Page 4: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

M O B I L E G A M I N G G R O W I N G T O $ 4 1 B B Y 2 0 1 7App Store Billings Have Already Exceeded Hollywood US Box Office Revenues

$41Bby 2017

$17Bby 2013

3Sources: Newzoo 2014 Global Games Market Report & Service; Glu Mobile Analyst Day Presentation, May 14, 2015

Page 5: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

M O B I L E G A M I N G I S B O O M I N G70% of Smartphone users will play a mobile game in 2015

Source: Newzoo 2014 Global Games Market Report & Service 4

Page 6: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F u l l F e a t u r e d G a m e s

3 to 9 month development timeline

Variety of categories including RPG,

Social Casino, & Quick-Fix

More risk but ability to generate

home run successes

Working with branded and celebrity IP

Monetizes primarily through in-app

purchases

A N E M E R G I N G M O B I L E G A M I N G L E A D E ROver 120 Titles with New Games Released Every Week

R a p i d L a u n c h G a m e s

Launching 1-2 games weekly

Using proprietary game engines, development

has become faster, more cost-efficient

Variety of genres including driving, parking,

stunts, animal simulation and professional

simulation

Profitable, low risk

Monetizes primarily through advertising

Tw o D i v i s i o n s

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Page 7: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

A N E M E R G I N G M O B I L E G A M I N G L E A D E RRapid Launch Games

A portfolio approach with over 110 games, 30 of which have achieved 1 million+ downloads

Historical data from 107 rapid launch games from 9/1/13 through 6/30/15.

Figures include projected data over estimated remaining life. 6

Average Cost per Game* Average ROI per Game*

$6.5K 245%$22.4K

Average Revenue per Game*

Page 8: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

A N E M E R G I N G M O B I L E G A M I N G L E A D E RFull Featured Games

We have launched eight such Games on iOS.

Seven were Featured as Best New Games Six reached the Top 50 in Games

Full Featured Titles with Unique Gameplay and Branded IP:

I lya NikolayevCEO

Interviewed on BloombergSept 3, 2014

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Page 9: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F R E E M I U M B U S I N E S S M O D E LWe Monetize User Engagement

80% of Revenue 20% of Revenue

AdsIAP + Paid Downloads

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12 Month Target: 50/50 revenue split between Ads and IAP + Paid

Page 10: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

No Ads During Gameplay Ads Shown Between Levels

When Game Ends Users Can Purchase New Items or Levels

1 2

3 4

F R E E M I U M B U S I N E S S M O D E LOur Advertising Does Not Disrupt Gameplay

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Page 11: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

Free to Play

Monetize Gameplay with Consumables & Non-Consumables

F R E E M I U M B U S I N E S S M O D E LOur In-App Purchases Enhance Gameplay

1

2

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Page 12: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

M O B I L E M O N E T I Z AT I O N G E T T I N G S T R O N G E RPlayer Monetization Is Accelerating

GROWTHCompoundAnnual Growth

Rates:

App Rev

Mobile AdoptionTIME

52.3

% C

AGR 2

010-2

017

14.6% CAGR 2013-2017

Source: DigiCapital 11

Page 13: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

G A M E S D O M I N AT E M O B I L E A P P R E V E N U EGames = ~74% of Revenue

Global mobile apps/games revenue ($B)

Source: DigiCapital

Games monetize ~4x more effectively

than all other mobile app types

Mobile Games

Other app categories

2013201220112010

5

10

15

20

GA

ME

S =

~74

% R

EV

EN

UE

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Page 14: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

C O M P E T I T I V E L A N D S C A P ERapid Launch and Full Featured Strategies Complement Each Other

Fast Dev

Slow Dev

EstablishedGame Play

OriginalGame Play

GLU

TAPINATOR FULL FEATURED

(Drive Users from Rapid Launch)

TAPINATOR RAPID LAUNCH

(100+ Million Users)

King

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Zynga

RockYou

Ketchapp

Page 15: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

C O M P E T I T I V E A D VA N TA G EBarriers to Entry

NewGame

NewGame

NewGame

Cross Promotion System(100+ Million Player Network)

Lean Production

App Store Optimization

Data Analytics

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Page 16: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

P L AY E R & G A M E M E T R I C SRobust Network Growth

M e t r i c s a s o f Q 2 2 0 1 5 :

· Average DAUs – 470,000; up 236% year-over-year, and up 75% sequentially

· Average MAUs – 7.73 million; up 188% year-over-year, and up 68% sequentially

· Average New Daily Downloads – 350,000; up 268% year-over-year, and up 139% sequentially

· Cumulative Downloads – 96.91 million as of June 30, 2015; up 298% year-over-year, and up 50%

sequentially

· Cumulative Game Library – 112 titles as of June 30, 2015; up from 40 year-over-year, and up from

93 sequentially

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Page 17: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

R A P I D L A U N C H D I V I S I O NCritical Mass Across Five Genres

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Page 18: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F U L L F E AT U R E D G A M E P I P E L I N ECombo Quest

F i r s t o f I t s K i n d R P G :

· Time-Tap Mechanic

· Mass Appeal RPG for All Ages

· Version 1.0 Launched on 01/08/15 as a 99 cent,

paid game. Became the #1 Paid RPG on iOS

· Featured by Apple three times: as a “Best New

Game”, and as a “Best New Update” for version

1.1 and version 1.2

· Freemium version to launch in Q1 2016

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Page 19: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F U L L F E AT U R E D G A M E P I P E L I N EVideo Poker VIP

B e s t I n C l a s s V i d e o P o k e r :

· Unique gameplay for the players’ favorite video

poker variants including Jacks or Better, Deuces

Wild, Bonus Poker, and Double Bonus

· Mechanics that have proven themselves in

slot games including level-based progression,

experience points, unlocking new locations, and

VIP points

· Opportunity to own the video poker space on

mobile with a differentiated, highly polished

product. Version updates launch monthly

· The social casino industry reached $2.8 billion in

2014 (61% from mobile) and is projected to grow

to $3.5 billion this year*

* Source: Eilers Research, Social Casino Tracker 18

Page 20: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F U L L F E AT U R E D G A M E P I P E L I N EDice Mage

S p e l l C o m b a t D i c e R P G

· Title launched as a “Best New Game”

with a prestigious “App Store Editors’

Notes”

· Over 527,000 downloads within first

week of launch

· Major opportunity in applying casino

mechanics to non-casino games (ie,

dice within an RPG game)

· New version to launch in November

2015, with a focus on retention and

additional levels (many users com-

pleted all current levels)

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Page 21: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F U L L F E AT U R E D G A M E P I P E L I N EMAJOR HIT MOVIE FRANCHISE

I n c o n j u n c t i o n w i t h a m a j o r f i l m s t u d i o , Ta p i n a t o r w i l l b e r e l e a s i n g a g a m e b a s e d o n a l e g e n d a r y h i t m o v i e f r a n c h i s e .

T h i s b r a n d h a s g r o s s e d a t o t a l o f o v e r o n e b i l l i o n d o l l a r s .

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CONFID

ENTIA

L

Page 22: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

A C Q U I S I T I O N SIndustry Fragmentation Creates Large Opportunity

• Patent-Pending Casino Layer SDK

• B2B product increases in-app purchases

(by 15% to 30%) and boosts game reten-

tion through distributed minigames

• Establishes relationships with potential

M&A targets

• Provides immediate revenue accretion

for future acquisitions

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A c q u i s i t i o n # 1 - I n A p p F u e l ( S e p t e m b e r 2 0 1 4 )

W e a r e a g g r e s s i v e l y p u r s u i n g o t h e r a c q u i s i t i o n s , e s p e c i a l l y t h o s e w i t h i n e v e r g r e e n a r e a s s u c h a s s o c i a l c a s i n o ( s l o t s , c a r d s , d i c e g a m e s ) .

Page 23: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F U T U R E O P P O R T U N I T I E SPlatform Innovation and Geographic Expansion

The Apple TV platform will challenge PS4

and Xbox One and will bring iOS games

to a new medium with an additional set of

players

In 2017, the Chinese mobile market will

reach $11.5 billion, tripling from 2014. We

are working with partners to bring our key

titles to this rapidly growing market

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Page 24: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

T E A M B I O SManagement

IIYA NIKOLAYEV - Chief Executive Officer

Co-Founder and CEO of Familybuilder until the sale of the Company to Intelius in 2011. Grew the business to profitability, over 45 million

users on the web, and over 2 million users on mobile (iOS and Android). Prior to Familybuilder, worked in banking for JP Morgan. Graduated

cum laude from New York University.

GEORGI DARAKEV - CTO - Social Casino

Led all feature development at Familybuilder. Extensive experience developing successful LAMP (Linux,Apache, MySQL, PHP) applications

and web services. Expertise in scaling applications on AWS, S3, and Rightscale. Built products used by millions monthly on both the web &

mobile. Bachelor’s in Computer Science from Dowling College.

ROBERT CRATES - Director

Over 25 years of experience in private equity, investing in a broad range of industries and asset categories. Mr. Crates has served on the

board of directors of numerous public and private companies.

KHURRAM SAMAD - CTO - Rapid Launch Games

Founded GeniTeam, an outsourced development Company focused on mobile with over 80 developers in house. Mr. Samad is an

experienced leader of offshore technical teams with access to superb local talent. Mr. Samad earned a BS in Computer Science from

National University of Computer and Emerging Sciences and an MBA from LUMS.

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ANDREW MERKATZ - President/CFO

An accomplished entrepreneurial finance and operations executive with 20+ years of financial operations and investment experience

focused on lower middle market and venture stage growth companies. Mr. Merkatz was a Managing Director of Investments at Vision

Capital Advisors where, for the past seven years, he oversaw investments in digital media, renewable energy, and software technology.

YVES ANIDJAR - Controller

Mr. Anidjar has over 20 years of experience providing financial leadership to small businesses in a wide range of industries. He started

his career at the international advisory firm of Ernst & Young where he advanced to the level of Senior Manager specializing in media and

entertainment companies. Mr. Anidjar is a Summa Cum Laude graduate of the City University of New York with a degree in accounting.

Page 25: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

F I N A N C I A L H I G H L I G H T S

R E V E N U E

O P. I N C O M E ( L O S S )

N E T I N C O M E ( L O S S )

A D J U S T E D E B I T D A

C A S H

T O TA L A S S E T S

T O TA L L I A B I L I T I E S

S T O C K H O L D E R S ’ E Q U I T Y

6 mo. (inception)DEC 31, 2013

(audited)

$1,027,241

(81,078)

(4,987,720)

299,266

1,845,462

3,447,013

6,823,172

(3,346,159)

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12 monthsDEC 31, 2014

(audited)

6 monthsJUN 30, 2015

(unaudited)

$943,449

24,447

7,892

101,762

121,740

1,569,712

390,206

406,007

$130,980

(17,807)

(17,807)

2,320

12,418

64,254

42,561

21,693

1

1 Unaudited

2 Includes a $4.7m non-cash loss on change in derivative liabilities

2

2

1

Page 26: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

K E Y FA C T S

SHARE STATISTICS

Trading Symbol (OTC) TAPM

Stock Price (9/8/15) $0.37

Shares Outstanding 56.9mm

30d Avg. Volume 217,739

Market Cap $21.1mm

Float (06/30/15) 7.7mm shares

Insider Ownership 60.6%

OTHERPersonnel 39 (including contract employees)

Fiscal Year Ends 12/31

Website Tapinator.com

Corporate HQ New York, NY

Auditor Liggett, Vogt & Webb, P.A.

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Page 27: Ticker: TAPM An Emerging Mobile Gaming Leader€¦ · slot games including level-based progression, experience points, unlocking new locations, and VIP points · Opportunity to own

T H A N K Y O U

For more information and a copy of our presentation, go to: http://tapinator.com/site/investors

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