| •   | The      unaudited Pro Forma Combined Balance Sheet as of December 31, 2008      combines the historical balance sheet of the companies as of December 31,      2008, giving effect to the acquisitions/mergers as if they had occurred on      January 1, 2008.   |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| •   | The      unaudited Pro Forma Combined Statement of Operations for the year ended      December 31, 2008 combines the historical income statements of the      companies for the indicated period, giving effect to the      acquisitions/mergers as if they had occurred on January 1,      2008. |
|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Pro      Forma Combined Balance Sheet as of December      31, 2008            | 2      |
|------------------------------------------------------------------------------------|--------|
|                                                                               |   |
| Pro      Forma Combined Statement of Operations as of December      31, 2008  | 3      |
|                                                                               |   |
| Notes to the      Pro Forma Adjustments                                            | 4      |

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BALANCE SHEET

| ASSETS                                                 | Secured Diversified Investment,      Ltd. |        | Galaxy Gaming, Inc. |   | Pro Forma Adjustments |   |                        | Total  |
|--------------------------------------------------------|-------------------------------------------|-------------|---------------------|--------|-----------------------|--------|-----------------------------|--------|
| Current      Assets                                    |                                      |        |                |   |                  |   |                        |   |
| Cash      and cash equivalents                         | $                                         | 12,279      |                | $      | 25,885                |   |                        |   |   | $ | 38,164 |
| Accounts      receivable, net                          |                                      | 0           |                |   | 246,860               |   |                        |   |   |   | 246,860 |
| Prepaid      expenses and taxes                        |                                      | 0           |                |   | 19,773                |   |                        |   |   |   | 19,773 |
| Inventory                                              |                                      | 0           |                |   | 46,177                |   |                        |   |   |   | 46,177 |
| Real      estate investments                           |                                      | 100,000     |                |   | 0                     |   |                        |   |   |   | 100,000 |
| Note      receivable - current portion                 |                                      | 0           |                |   | 69,617                |   |                        |   |   |   | 69,617 |
| Total      Current Assets                              |                                      | 112,279     |                |   | 408,312               |   |                        |   |   |   | 520,591 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Property      and Equipment, Net                       |                                      | 0           |                |   | 23,389                |   |                        |   |   |   | 23,389 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Other      Assets                                      |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Intellectual      property, net                        |                                      | 0           |                |   | 133,919               |   |                        |   |   |   | 133,919 |
| Intangible      assets                                 |                                      | 0           |                |   | 150,000               |   |                        |   |   |   | 150,000 |
| Note      receivable - long term                       |                                      | 0           |                |   | 435,744               |   |                        |   |   |   | 435,744 |
| Total      Other Assets                                |                                      | 0           |                |   | 719,663               |   |                        |   |   |   | 719,663 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| TOTAL      ASSETS                                      | $                                         | 112,279     |                | $      | 1,151,364             |   |                        |   |   | $ | 1,263,643 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ DEFICIT       |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Current      Liabilities                               |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Accounts      payable                                  | $                                         | 242,028     |                | $      | 146,336               |   | (242,028)a                  |   |   | $ | 146,336 |
| Accrued      expenses and taxes                        |                                      | 396,256     |                |   | 297,264               |   | (396,256)a                  |   |   |   | 297,264 |
| Deferred      revenue                                  |                                      | 0           |                |   | 196,579               |   |                        |   |   |   | 196,579 |
| Due      to related party                              |                                      | 0           |                |   | 31,639                |   |                        |   |   |   | 31,639 |
| Note      payable – related party                |                                      | 0           |                |   | 384,450               |   |                        |   |   |   | 384,450 |
| Notes      payable – current portion             |                                      | 0           |                |   | 23,014                |   |                        |   |   |   | 23,014 |
| Total      Current Liabilities                         |                                      | 638,284     |                |   | 1,079,282             |   |                        |   |   |   | 1,079,285 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Long      Term Liabilities                             |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Notes      payable                                     |                                      | 45,000      |                |   | 1,192,280             |   | (45,000)a                   |   |   |   | 1,192,280 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| TOTAL      LIABILITIES                                 |                                      | 683,284     |                |   | 2,271,562             |   |                        |   |   |   | 2,271,562 |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| STOCKHOLDERS’      DEFICIT                       |                                      |        |                |   |                  |   |                        |   |   |   |   |
| Capital      stock                                     |                                      | 163         |                |   | 10,000                |   | (163)b(10,000)c29,000d      |   |   |   | 29,000 |
| Unissued      shares                                   |                                      | 5,830       |                |   | 0                     |   | (5,830                      | )b     |   |   | 0 |
| Paid      in capital                                   |                                      | 8,818,647   |                |   | 125                   |   | (8,818,647)b (125)c 93,404d |   |   |   | 93,404 |
| Accumulated      deficit                               |                                      | (9,395,645) |                |   | (1,130,323)           |   | 9,395,645b                  |   |   |   | (1,130,323) |
| TOTAL      STOCKHOLDERS’ DEFICIT                 |                                      | (571,005)   |                |   | (1,120,198)           |   |                        |   |   |   | (1,007,919) |
|                                                   |                                      |        |                |   |                  |   |                        |   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ DEFICIT | $                                         | 112,279     |                | $      | 1,151,364             |   |                        |   |   | $ | 1,263,643 |

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PRO FORMA COMBINED STATEMENT OF OPERATIONS

|                                               | Secured      Diversified Investment, Ltd. |      | Galaxy Gaming, Inc. |   | Pro Forma Adjustments | Totals |
|----------------------------------------------------|-------------------------------------------|-----------|---------------------|--------|-----------------------|--------|
|                                               |                                      |      |                |   |                  |   |
| Gross      Revenues                                | $                                         | 0         |                | $      | 2,067,445             |   |   | $ | 2,067,445 |
| Cost      of Goods Sold                            |                                      | 0         |                |   | 119,248               |   |   |   | 119,248 |
| Gross      Profit                                  |                                      | 0         |                |   | 1,948,197             |   |   |   | 1,948,197 |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Operating      Expenses                            |                                      | 252,736   |                |   | 2,359,459             |   |   |   | 2,612,195 |
| Operating      Loss                                |                                      | (252,736) |                |   | (411,262)             |   |   |   | (663,998) |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Other      Income (Expense)                        |                                      | (118,851) |                |   | (92,942)              |   |   |   | (211,793) |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Net      Loss Before Provision for Income Taxes    |                                      | (371,587) |                |   | (504,204)             |   |   |   | (875,791) |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Provision      for Income Taxes                    |                                      | (800)     |                |   | 0                     |   |   |   | (800) |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Net      Loss                                      | $                                         | (372,387) |                | $      | (504,204)             |   |   | $ | (876,591) |
|                                               |                                      |      |                |   |                  |   |   |   |   |
| Weighted      Average Number Of Shares Outstanding |                                      |      |                |   |                  |   |   |   | 29,000,000d |
| Net      Loss Per Share                            |                                      |      |                |   |                  |   |   | $ | (0.03) |

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NOTES TO THE PRO FORMA ADJUSTMENTS (unaudited)