News on GLOW !!
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Tuesday April 28, 11:40 am Eastern Time
Company Press Release
Global Announces Immediate Expansion Of ECS Subsidiary
MINNEAPOLIS--(BUSINESS WIRE)--April 28, 1998--Global Games Corp. (OTC Bulletin Board, symbol ''GLOW''), announced today they are initiating major expansion plans for their Electronic Card Services, Inc. (ECS) division, a high-profit margin, wholly owned subsidiary of Global Games, Inc.
ECS has recently completed a very successful beta test using 10 Chat-Line Card Dispensing Systems. These ATM-style systems dispense prepaid ''Personally Yours'' dating and chat cards to customers. Based upon the exceptional results of this test, ECS will begin placing an additional 35 dispensing systems in the next few weeks.
ECS President Bob Heward stated, ''We have negotiated rights to a line of next- generation card dispensers to disseminate our popular Chat Line cards. These stylish, durable, safe card dispensers incorporate theft-prevention alarms and will be placed in high-visibility areas, thus greatly reducing loss from theft.''
''Our strategic plan includes placement of over 200 new card dispensers by year end as well as entrance into 2 additional Canadian cities and 4 U.S. cities. Aggressive marketing support includes weekly newspaper advertising together with eye-catching promotional activity at each location.''
Mr. Heward concluded, ''We anticipate net revenues of approximately $7 million this year and a sizeable earnings contribution.''
Prepaid calling card sales for 1997 were estimated at over $2 billion with projections of over $4 billion annually by the year 2001 (as reported by TeleCard World magazine). ECS' Chat-Line customers can use their cards for chat line and dating services. ECS is also developing an Internet capability which will allow consumers both Internet and phone access to its services.
Additionally, Global is very pleased to announce that the ECS acquisition, which originally was a cash-plus-stock transaction, has been restructured more attractively and is now a stock-only
transaction. The new ECS acquisition price is 2 million shares of free-trading Global stock and 4 million shares of restricted stock. This transaction is expected to close this week.
Note: This release contains forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions reflecting something other than historical fact involve a number of risks and uncertainties, including timely development and market acceptance of certain products and services, successful integration of acquisitions, the ability to secure additional financing and the ability to operate within the framework of available resources. The actual results the Company achieves may differ materially from any forward-looking statements, due to such risks and uncertainties.
Contact:
Global Games Corp., Minneapolis
Gary Borglund or Allysa Amundson
612/672-0834
Gborglund@aol.com
Allysaa@aol.com |
