New press release and shareholder's meeting is tomorrow (may 5)
Showscan Announces Three Simulation Sales and Three Custom Simulation Films
LOS ANGELES--(BUSINESS WIRE)--May 4, 1998--Showscan Entertainment Inc. (NASDAQ: SHOW) Monday announced the sale of three Showscan simulation attractions, valued at approximately $2.7 million, in three countries.
Additionally, Showscan announced three custom simulation film productions having aggregate budgets of approximately $4.3 million.
Dennis Pope, president and chief executive officer of Showscan, stated: "These simulation attraction sales and film productions are especially satisfying to Showscan, given the difficult position that we were in during the pendancy of the merger with Iwerks. While we worked to close the merger, we diligently maintained our marketing position as an independent entity and mounted a vigorous sales and communications program.
"When the merger was not consummated, we were able to move quickly to ensure that our existing and prospective customers would remain committed to Showscan. These simulation attraction sales and film productions are solid evidence of our successful program and the speed at which Showscan can move."
Showscan has sold a custom 48-seat simulation attraction for the first Olympic Spirit site, currently under construction at Olympia Park in Munich, Germany, the site of the 1972 Olympic games.
Olympic Spirit is a United Kingdom-based organization, under license from the International Olympic Committee, dedicated to creating a series of permanent sports entertainment attractions designed to celebrate and exhibit the modern Olympics and to bring the Olympic Games to the general public for the first time ever.
Included in each Olympic Spirit location are a number of state-of-the-art facilities, including interactive "challenges," a 180-degree video theater and a 48-seat Showscan simulation attraction. An Olympic Hall of Fame, other exhibits, restaurants, retail and sports facilities will round out the experience.
The Munich attraction will premiere "Realizing The Dream," a 10- minute simulation film which has been produced for Olympic Spirit by Showscan. The "Realizing The Dream" film is based around the 1997 Atlanta Summer Olympic Games.
Showscan also recently concluded highly successful filming for the second Olympic Spirit film at the 1998 Winter Olympic Games in Nagano, Japan. Producing the Olympic Spirit films for Showscan is Peter Henton, a veteran of filmmaking in the Showscan Film Process.
Henton said: "The idea of each Olympic Spirit film is to allow the audience to experience what it is like to actually participate in specific Olympic Games events, including kayaking, pole vaulting, boxing, ski jumping, moguls and giant slalom. To truly build the feeling of 'being there,' filming during the Olympic Games is vital. Accordingly, the films will include actual opening ceremonies and event footage to enhance the 'participating in experience.'"
A second 48-seat custom simulation attraction has been sold to the International Centre For Life Trust in Newcastle, England.
Showscan will also produce an eight-minute custom simulation film titled, "Life's A Roller Coaster," also produced by Henton and to be shot in Britain and California. It will depict how, as adults, we use the most basic physical skills, such as walking, running and jumping, that we learned as children.
Additionally, Showscan has sold a simulation attraction for a site in Salzburg, Austria. This contract represents the second Showscan purchase by Kraftwerk, an Austrian-based entertainment technology company.
Kraftwerk's first Showscan motion simulation theater is currently in operation at a major entertainment center in Graz, Austria. These attractions feature the revolutionary electro-magnetic motion base technology exclusively marketed by Showscan.
Kraftwerk, in concert with Showscan, plans to roll out additional locations in Europe over the next two years. Pope stated, "Showscan has a very close working relationship with the Kraftwerk principals; we have granted to Kraftwerk sales exclusivity for the electro-magnetic motion base technology in Europe.
"The Kraftwerk relationship is an excellent example of Showscan's business strategy -- that is, to enter into multiple-system arrangements with established entertainment companies in order to work together in substantially increasing the installed base of Showscan attractions around the world."
Showscan is an international leader in the production and exhibition of exciting movie-based entertainment attractions worldwide.
Showscan's simulation and specialty attractions are open or under construction in 25 countries around the world, located in theme parks, motion picture multiplexes, expos, world's fairs, resorts, shopping centers, casinos, museums and other tourist destinations.
Showscan owns and operates its own attractions and operates others in partnership with leading entertainment companies around the world.
NOTE: Except for the historical information contained herein, the statements made in this release constitute forward-looking statements that involve certain risks and uncertainties. Certain factors may cause actual results to differ materially from those contained in the forward looking statements, including the number and timing of sales of Showscan attractions, the development and acceptance of new products, the impact of competition on the company's products and pricing, the company's ability to locate, finance and operate attractions for the company's account, and the other risks detailed from time to time in the company's reports on file at the Securities and Exchange Commission.
CONTACT:
Stern and Company, Los Angeles
Steven D. Stern, 310/442-8414
KEYWORD: CALIFORNIA
BW0140 MAY 04,1998
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