The Unabridged History of Winners and Losers

[Tatari Gami]

October Shareholder's Letter
http://www.winr.net/text/Inv-10-30-01.htm

October 30, 2001

Dear Shareholders,

I promised to provide monthly written updates about our efforts to improve the financial performance of Winners Internet Network, Inc. (the “Company”). Here’s the third report.

Overall Business

Overall business conditions have not changed.

Specific Issues

Liquidity

The Company’s liquidity situation has not changed. Visa continues to release funds in small amounts and we continue to fund current operations from the portion of those funds that represent our fees. Overall, our cash position continues to be sufficient to continue operations for a couple more months unless we find new investors. We have discontinued our efforts to find new investors since the likelihood of finding one is remote.

SEC Investigation

The SEC investigation is ongoing. SEC staff interviewed several employees of the Company early this month. The ultimate outcome of this process and the impact on us remains highly uncertain.

Financial Statements

No change in status.

Visa/UBS Card Contracts

We have Visa’s final version of the new contract. The major issue affecting our business continues to be Visa/UBS’s position that they will hold funds due us for up to 180 days (due to the nature of our business, the businesses using our service and current customer base). That point will make it difficult for us to secure new customers. We are now in a position to sign the new contract with Visa, but we’re not sure it will do the business any good. As indicated before, we continue to build a database of potential customers for marketing and have had discussions with large potential customers.

There are no changes to report concerning the status of SEC reporting, relisting, the management team, or the Board of Directors. Members of the Board of Directors were not available to meet in October. I am planning to call a Board of Directors meeting for early November to discuss the future of the company. I hope be able to report the results of that meeting in my November report.

This is the third monthly report. I’ll prepare another one in November or as soon as a significant development occurs.

Sincerely,

Stefan Vogt

Chief Executive Officer

Ruggell, Liechtenstein