TTLN News Jan 20th 2000 - TTLN & OGAM Licensing Agreement
BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 20, 2000--Online Gaming Systems Ltd. (OTCBB: OGAM) announced today that it has signed a master global licensing agreement with Total Entertainment Inc. (OTCBB: TTLN), a fully integrated, Internet gaming solutions company based in Montreal, Quebec, Canada. According to the agreement, Online Gaming has granted Total Entertainment an exclusive license to market, sell, and lease Online Gaming software to all non-land based virtual gaming venues worldwide. Online Gaming will, however, continue and expand its efforts to pursue all land-based gaming and wagering operators world-wide in regulated market places. Although specific financial terms were not disclosed, Online Gaming Systems and Total Entertainment will share in any and all up-front licensing monies as well as any ongoing maintenance and support fees. In addition, to ensure a long-standing, good faith relationship, Total Entertainment will distribute 500,000 shares of its stock to Online Gaming by January 31, 2000 and 250,000 shares thereafter annually for the next four years.
Both companies believe that the global market for Internet-based gaming will continue to grow at an significant rate, as outlined in a recent Bear Stearns Internet gaming report. Total Entertainment is aggressively pursuing that market by creating the software and hardware infrastructure solutions that enable prospective clients to successfully participate in this burgeoning market. By integrating traditional and customized Online Gaming software into its turnkey solutions package, Total Entertainment clients will be better served and a robust and significant economic impact should be felt by both companies over time.
Richard Iamunno, Online Gaming's President & CEO stated, "This agreement is significant for Online Gaming for a number of reasons. It allows our Company to focus its sales efforts exclusively on fully licensed, land-based casinos worldwide, a virtually untouched market. It also gives Online Gaming a strong advantage in the Internet-based gaming space, where Total Entertainment's core competency lies. Finally, we believe that the agreement will produce excellent financial results as a recurring revenue stream is created through our partners global distribution capabilities." Iamunno concluded, "Our momentum and enthusiasm continue as we approach the next few quarters with several strong partners. We look forward to the roll-out of our new and existing products and new ways to monetize out technological expertise."
Sandy Masselli Jr, Chairman of Total Entertainment Inc. added, "This licensing agreement offers our Company value added, software solutions for our global Internet clientele. We plan on aggressively distributing our technology and maintaining a growing portfolio of active clients." Masselli continued, "We also applaud the economic structure of this long term deal. Our interests are completely aligned with Online Gaming and the recurring revenue characteristics of the agreement conform to the operating philosophy of our company. Ultimately, our shareholders will be the direct beneficiary of this exciting and scalable business model."
Online Gaming Systems, Ltd. (www.ogsltd.com) develops and markets Internet and private network transaction based products that it only offers to licensed gaming operators in regulated jurisdictions. These products include; Internet Casino Extension(TM) (ICE(TM)), a growing suite of casino games; webSports(TM), a sports wagering system; Lotto Magic(TM) a lottery system for private, government and fund raising purposes; and Bingo Blast(TM) a multi-player system for charity and private organization use. The company also offers wireless and portable gaming devices through its Las Vegas based Excel Design, Inc., a wholly owned subsidiary and Anchor Gaming (SLOT) its exclusive North American distributor.
This press release contains potential forward-looking statements regarding the Company. The future performance of the Company involves risks and uncertainties that could cause actual results to differ materially. Such risks include competition and pricing pressures, dependence on telecommunications carriers, management of growth, customer turnover, technological change, governmental regulation, unauthorized use of technology, system failures and a variety of stock market-related risks. For a more complete description of certain such risks and uncertainties, we refer you to the documents that the Company files from time to time with the Securities and Exchange Commission including 10K filed May 7, 1999 and form 10Q filed November 18, 1999.
Contact:
For Investor Relations please contact:
Integrated Corporate Relations, Inc.
Tom Ryan, 203/222-9013
or
Online Gaming Systems, Ltd., Boca Raton
Richard Iamunno, President & CEO
Phone: 561/393-6685
Fax: 561/393-1485 |
