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Non-Tech : NORE - High Tech Bingo Equipment - Online Bingo -- Ignore unavailable to you. Want to Upgrade?

To: Jay D. who wrote (588)	1/22/1998 3:52:00 PM
From: Ed Pettee	Read Replies (1) \| Respond to of 7701

Jay This came from the press release of 10/23/97 PRNEWSWIRE--HEADING NorAm Gaming Announces Agreement With Sharp Image Gaming, International, Inc. Page 2 -Has a quote from George Zilba "We view the fact that Sharp Image is manufacturing and placing the VLT lottery terminals at no initial cost to NorAm, as the equivalent of $10 million financing" Jay -this is the press release that laid out the Revenue and Margins for each of three years--1998-1999-2000. And described how Sharp and NorAm would share the net revenue 50/50. Also that the costs of the machines would be taken out of operating costs on a shared basis. I recall asking George if this meant that we would own these machines on a 50 % basis and carry them as an asset on our books . He said that was correct. I never asked how the $10 million was arrived at, but assumed it included all the factors from manufacturing, shipping and installation costs. And probably incuded the 2000 machines shown for the three years. ($5000 per machine) I used this in my comments to MRBIGAIR to point out that if I (Sharp Image) had this kind of dollar committment (105 machines at$5000 or $500000) currently involved in the January installations, I sure would know how I was progressing in that endevour. If we are a 50/50 partner with Sharp there is no reason why we should not know what is happening on a daily basis, just as they know. I think people know but have some other reason for not letting the stock holders know. Hope this helps--Ed