BING News ... Bingo & Gaming Entering Pennsylvania -- Exclusive Distribution Deal Signed with Phone Card Unlimited
AUSTIN, Texas--(BUSINESS WIRE)--June 2, 1999--Bingo and Gaming International Inc. (OTC BB:BING), an Austin-based distributor of prepaid phone cards and machines that distribute its prepaid phone cards, announced today that it has signed an exclusive distribution contract with Phone Cards Unlimited Inc. for the placement and operation of its Lucky Strike pre-paid phone card machines in the state of Pennsylvania. Bingo & Gaming states that the agreement will lead to the sale of 35 new machines immediately.
''Pennsylvania should be a great market for our machines,'' says Bingo & Gaming International CEO Reid Funderburk. ''Phone Cards Unlimited is positioned properly to provide Bingo & Gaming International a smooth entry into the state and placement in prime locations. These additional sales, along with those that should accompany our entry into the North Dakota market as well as our expansion into California, should increase the company's projected overall revenues by $5.l million or approximately 140 percent over last year.''
The contract, which took nearly nine months to negotiate, provides minimum purchase requirements that are expected to increase the total number of machines sold by the company in 1999 by 100 percent. This contract represents a 67% increase in the number of machines sold over last year.
''We are pleased to have completed our Distribution Agreement for the Lucky Strike prepaid phone card dispenser in Pennsylvania,'' states John Smolic, president of Phone Cards Unlimited. ''After carefully comparing other similar dispensers, we chose the Lucky Strike Dispensers handled by PrePaid Plus Inc. The quality of the product, the accountability features offered by the machine, and the knowledge and thoroughness of the PrePaid Plus sales and technical staff really were the deciding factors in my decision to represent their product. Several machines are already on location and more are scheduled to arrive this week. We look forward to a long and profitable business relationship.'' PrePaid Plus Inc. is a wholly owned subsidiary of Bingo & Gaming International Inc.
Bingo & Gaming International sells, rents, operates and services Lucky Strike machines. The prepaid phone card vending machines employ a novel marketing concept which permits consumers to enter a free promotional sweepstakes offering cash prizes from $1 to $1,000 with every phone card purchase. The company also operates as a lessor of charity bingo facilities.
The company's growth strategy includes selectively broadening the geographic scope of its operations by entering new markets. Pending legislation and distribution contracts may enable Bingo & Gaming International to sell its machines in several more states this year than it has done in the past. The company already has its machines placed in Texas, Oklahoma, Arizona, Connecticut, Idaho, North Dakota and Illinois. Most of its machines are located in charitable bingo halls and Indian bingo facilities, but some are located in bars and bowling alleys.
For more information, contact David Drake of Merger Communications at 713/267-2328 or daviddrake@earthlink.net.
The statements made by Bingo & Gaming International (BGI) may be forward looking in nature. Actual results may differ materially from these projected statements. BGI believes that its primary risk factors include, but are not limited to: the need for substantial financial requirements; the need to develop effective internal processes and systems; changes in the overall economy; changes in technology; the number and size of competitors and the mix of product and services offered in its markets; and changes in the law and regulatory policy. Merger Communications (Merger) is a media relations firm employed by BGI. The statements and opinions presented here represent the views of BGI, not Merger, as the release is based on the information provided by BGI. Merger and BGI believe that all information herein has been obtained from sources considered reliable, but can not guarantee that the statements presented herein are accurate or complete. Merger's compensation for its media relations services, including preparation of press releases, consists of a monthly retainer and stock. Merger may have a long position in the securities of the companies in which it distributes information to the media, and Merger may be buying or selling securities in the course of its regular business.
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Contact:
Merger Communications, Houston
David Drake, 713/267-2328
daviddrake@earthlink.net
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