eGAMES ANNOUNCES NEW BANKING RELATIONSHIP
AND CREDIT FACILITY
Langhorne, PA - September 19, 2003 - eGames, Inc. (OTCBB: EGAM), a publisher of Family Friendly(TM), value-priced consumer entertainment PC software games, today announced it has established a new banking relationship with Hudson United Bank ("HUB"), which will permit the Company to borrow up to $500,000, subject to certain restrictions, for working capital and short-term borrowing requirements.
Amounts outstanding under this credit facility will be charged interest at one-half of one percent above HUB's current prime rate and interest will be due monthly. Access to these funds will be limited to the lesser of $500,000 or seventy-five percent of qualified accounts receivable. This credit facility, which matures on December 1, 2004, is secured by all of the Company's assets and requires the Company, among other things, to maintain the following financial covenants to be tested quarterly: a total liabilities to tangible net worth ratio of 1.25 to 1.00 and a minimum tangible net worth requirement of $1.5 million. |
