News - Mar 1, Total Entertainment Signs Hosting Agreement with NetforFun.com;
Total Entertainment Signs Hosting Agreement with NetforFun.com; Total Entertainment Obtains $2 Million Immediately and Additional Revenue Stream
MONTREAL, N.Y., Mar 1, 2000 (BUSINESS WIRE) -- Total Entertainment Inc. (TTLN-NASD-BB) announced today that it has signed a hosting agreement with NetforFun.com Inc. and obtained a 25% stake in the new Internet gaming company that will soon be listed on the Canadian Venture Exchange (CDNX).
The agreement is part of Total Entertainment's diversification strategy, which will see the company involved in hosting, customer support and other Internet activities, in addition to its core gaming services.
As part of a five-year services agreement, Total Entertainment will receive a 10% royalty on net revenues of NetforFun.com and $180,000 per year for hosting, support and use of Total Entertainment's state-of-the-art e-commerce solution, which allows users to purchase electronic cash by credit card, wire transfer, money order or personal check. In addition, Total Entertainment will receive $500,000 in cash and $1.5 million in shares of NetforFun.com in exchange for a 50% interest in Slots Vegas. Total Entertainment will hold a 25% stake in NetforFun.com Inc.
"Total Entertainment has a long-term growth strategy which is based on our core network of Internet gaming sites, the reselling of our Internet solutions as well as hosting and support services," said Mitchell Brown, President and Chief Operating Officer of Total Entertainment. "Our proven e-commerce and Internet solutions will attract attention from young companies that want to take the Internet plunge or existing companies that want to add real e-commerce potential to their Web sites."
"This new agreement will increase our market reach and visibility, while making a significant addition to our current revenue streams," said Sandy J. Masselli Jr., Chairman and CEO of Total Entertainment. "More and more companies are starting to realize the value of our sites, services and e-commerce solutions."
Total Entertainment held a conference call earlier today that answered questions about the company's current operations and discussed the company's strategy going forward. A recording of that conference call can be heard at (402) 998-1044.
Total Entertainment Inc. (TTLN-NASD-BB) owns and operates interactive software-based games of chance and sports wagering facilities. Through its network of Internet properties, users can play realistic online games, receive the latest news, financial information and free e-mail, and create a personalized portal to the Internet. Total Entertainment's e-commerce solution enables users to purchase electronic cash by credit card, wire transfer, money order or personal check.
The statements in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995.
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CONTACT: Total Entertainment Inc.
Sandy Masselli, Jr.
Mitchell Brown
514/842-6999
www.ttln.com
or
National Public Relations
Daniel Brennan
514/843-2325 |
