(PR NEWSWIRE) Electronics Boutique Anticipates Additional Revenue from Man
Electronics Boutique Anticipates Additional Revenue from Management Contract
With London Based Electronics Boutique, Plc.
* Electronics Boutique, Plc. Plans to Acquire Game, Ltd.
* Electronics Boutique to Receive 1% of Combined Company's Net Sales
WEST CHESTER, Pa., April 21 /PRNewswire/ -- Electronics Boutique Holdings
Corp. (Nasdaq: ELBO), the world's largest specialty retailer of electronic
games, today announced that London-based Electronics Boutique, Plc.,
(London: EBQ), a company with which it has a management contract, plans to
acquire Game, Ltd. in a transaction valued at approximately 99 million pounds
sterling (US$159.9 million based on April 13, 1999 exchange rates). The deal,
which was previously announced, is subject to shareholder approval and
customary closing conditions. As part of its management contract with
Electronics Boutique, Plc., the Company will receive a minimum of 1% of net
sales of the combined company, which totaled approximately 242.0 million
pounds sterling (US$390.1 million) for 1998 on a pro forma basis. The Company
estimates that the acquisition could increase management fees by $0.03 to
$0.04 per share for 1999. Following completion of the acquisition,
Electronics Boutique, Plc. will operate 268 stores throughout the United
Kingdom with an estimated 20% share of the market.
Electronics Boutique is the leading specialty retailer of video and
computer games and also sells video game hardware, PC productivity software
and accessories. The company currently operates 547 stores in 45 states,
Puerto Rico, Canada, Australia and South Korea, primarily under the names
Electronics Boutique and Stop 'N Save Software. The company has also
established a separate e-commerce division, EBWorld.com, Inc., to accelerate
the growth of its Internet business. During fiscal 1999, there were more than
10 million visits to the company's website at ebworld.com.
This press release contains "forward-looking statements." Electronics
Boutique ("EB") is including this statement for the express purpose of
availing itself of the protections of the safe harbor provided by the Private
Securities Litigation Reform Act of 1995 with respect to all such forward-
looking statements. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially. These
risks include, but are not limited to, EB's dependence on the continued
introduction of new and enhanced video games and PC hardware and software; the
cyclical nature of the video game market; the rapid technological changes
which occur in the video game and PC industry; EB's ability to open and
operate new stores on a profitable basis; the intensely competitive nature of
the electronic game industry and its rapid changes in consumer preferences and
frequent new product introductions; the seasonal nature of the retail
industry; EB's dependence on its suppliers for products; risks inherent to
conducting international operations; and consumer spending patterns and
prevailing economic conditions. Please refer to Electronics Boutique's
registration statement on Form S-1 on file with the SEC for a more detailed
discussion of these and other risks that could cause results to differ
materially.
SOURCE Electronics Boutique Holdings Corp.
-0- 04/21/99
/CONTACT: John R. Panichello, Chief Financial Officer of Electronics
Boutique Holdings Corp., 610-430-8100; or Analysts, Lynn Sawyer-Landau, or
Media Info, Alan Goldsand, of The Financial Relations Board, 212-661-8030/
/Web site: ebworld.com
(ELBO)
CO: Electronics Boutique Holdings Corp.; Electronics Boutique, Plc.; Game,
Ltd.
ST: Pennsylvania, New York, London
IN: REA MLM CPR
SU: TNM CON |
