was a temporary suspension of the trading of their shares on the Nasdaq Small Cap Market.

They said that trading was ceased over a technical compliance matter related to the company's prior securities registration with the British Columbia Securities Commission (BCSC).

Sky Games International has developed a sophisticated system of remote control gaming entertainment software that would allow airline passengers to gamble electronically while in flight.

The system is being marketed through Interactive Entertainment Ltd., the company's majority-owned joint venture with Harrah's Casinos.

A statement from Sky Games International out of Vancouver said that the trading suspension was not implemented by Nasdaq due to any failure by the company to meet Nasdaq listing requirements or US Securities and Exchange Commission requirements applicable to the company.

Incorporated in Bermuda in February, the company had delisted from the Vancouver Stock Exchange at the end of December. But it was still deemed to be a reporting issuer under the rules of the BCSC, requiring the filing of its annual financial statements with the BCSC within four months of the end of the fiscal year.

That deadline was June 30, and in the absence of such a filing, the BCSC issued a trading halt, even though the company's stock does not trade on any securities market in British Columbia.

Nasdaq informed Sky Games of its policy to impose its own trading halt under such circumstances.

Sky Games said yesterday that the BCSC's trading halt will be terminated once the relevant financial statements are filed with the BCSC and the Nasdaq trading halt would also be subsequently lifted.

The company said that it will file the financial statements no later than August 31.

The company also disclosed that the financial statements took longer to prepare than would be normal due to the necessity of auditing five corporations in three separate jurisdictions (Bermuda, Canada and the US) and the continuing of the company to Bermuda.

Sky Games International said that management expected this to be a one-time problem. To prevent a recurrence of a BCSC trading halt, the company is initiating filings seeking to terminate the company's registration as a reporting issuer with the BCSC.