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Non-Tech : Multimedia Games Inc. (MGAM) -- Ignore unavailable to you. Want to Upgrade?

To: mohammad delwar who wrote (178)	12/30/1998 9:57:00 AM
From: rdww	Respond to of 197

well they still have a lawsuit to settle with Net Gaming (NGQ.vse), that was launched last Feb. Network Gaming International Corp. - US lawsuit against Multimedia Games Network Gaming International Corp. NGQ Shares issued 11,805,695 1998-02-02 close $0.14 Monday Feb 2 1998 Mr Keith Folkestad reports Due to breaches of its US distribution agreement with Multimedia Games, a lawsuit has been commenced by Network in US Federal Court in Oklahoma against Multimedia to recover estimated damages in a calculated amount of approximately US$62 million plus unspecified further damages. Pursuant to the agreement, Multimedia had agreed to use commercially reasonable efforts to place purchase orders or revenue sharing orders towards the installation of 5,000 MB-1000 electronic bingo player stations for the 12 months ended October 31 1997, and 5,000 further units for the year ended October 31 1998. This key commitment, together with other purchase and marketing commitments contained in the agreement, represented the basis for Network to grant exclusive distribution rights with respect to its software to Multimedia for specific US markets, and for Network to make available, in confidence and without any right to use for Multimedia's sole use, Network's technical know-how with electronic bingo systems. Management believes that Multimedia has acted in bad faith by, among other things, misappropriating for its own purposes the trade secrets, and other technical information of Network; by creating its own electronic bingo software based on the misappropriated intellectual property; by, directly or indirectly, causing its clients to substitute this illegally developed software for Network's software; and by creating delays in informing Network of US regulatory changes required for its software, thereby creating a false basis for substituting its own software for the Network software. At the time of the US distribution agreement being entered into, the parties also entered into a Canadian distribution agreement whereby Multimedia granted Network an exclusive licence to distribute the MegaBingo system in Canada and China, and Multimedia agreed to fully assist in securing Megabingo contracts in such jurisdictions. Management believes that Multimedia has acted in bad faith with respect to this second agreement by, among other things, not providing a working MegaBingo system for demonstration to prospective Canadian purchasers, and not responding to formal requests for product quotations and marketing assistance. As a result, Network is suing for extensive damages. Multimedia is a Nasdaq OTC listed company which has a current market capitalization of approximately US$50 million. Accordingly, Network expects to be able to collect payment on a successful judgement. (c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com -