eGames Announces Acquisition of Legendary Brand
and Game Developer Cinemaware
Cinemaware President Lars Fuhrken-Batista To Join eGames As Vice
President of Development
LANGHORNE, Pa., - October 6, 2005 (PRIMEZONE) - eGames, Inc. (OTCBB:EGAM),
a publisher of Family Friendly(TM), affordably priced consumer entertainment
software, today announced that it had entered into an agreement to purchase
substantially all of the assets of Cinemaware, Inc., a developer of interactive
entertainment software for console game platforms and the PC.
The assets to be acquired upon completion of the transaction consist of
Cinemaware's intellectual property, contract rights and goodwill. As part of the
transaction, Lars Fuhrken-Batista, Cinemaware's President, will join eGames as
its new Vice President of Development. Mr. Batista will be in charge of internal
product development and external acquisition opportunities.
eGames will issue between 600,000 and 855,000 shares of eGames' common stock to
Cinemaware in exchange for its assets, to be calculated based on the average
closing price of a share of eGames common stock for the ten trading days prior
to the closing. eGames will also issue to Cinemaware warrants for the purchase
of an additional 300,000 shares of its common stock. The transaction is expected
to close before the end of October, 2005.
Cinemaware, Inc. was formed by Mr. Batista in 2000 upon the acquisition of the
Cinemaware(R) interactive entertainment software trademark, and intellectual
property previously owned by Cinemaware Corporation, originally founded in 1985.
Cinemaware began as an active developer and publisher of award winning games for
the Amiga, C64, Apple IIGS, PC, NES, NEC Turbografx and other computers and
console systems. After releasing over fifteen titles, Cinemaware Corporation
closed its doors in 1991. Cinemaware's catalog game properties include Robin
Hood: Defender of the Crown(R), Defender of the Crown(R), SDI(TM), The King of
Chicago(TM), Sinbad and the Throne of the Falcon(TM), Rocket Ranger(TM), Lords
of the Rising Sun(TM), It Came from the Desert(TM), Wings(TM) and the TV
Sports(TM) franchise of sports games. These titles are still included on
numerous "Best Games of All Time" lists in major game publications and websites
worldwide and are to this day considered some of the most innovative games ever
created.
"By joining forces with an established publisher such as eGames, we will now be
able to reach a larger market and explore the full potential of Cinemaware's
past and future intellectual properties on a much wider platform range. In the
current transition phase the game industry is going through, it was very
important for me to find a suitable partner for future Cinemaware products, and
I am happy to be a part of the eGames team as we move forward with new product
releases," said Cinemaware President Lars Fuhrken-Batista.
Jerry Klein, President and CEO of eGames, commented, "The original Cinemaware
group spurred a revolution in game design and presentation by combining highly
entertaining and accessible game play set in familiar film genres and using
unique cinematic presentation techniques. Under Lars' leadership, Cinemaware
embarked on a multi-platform product development strategy with special focus on
next generation video game consoles and hand-held formats, as well as personal
computers and online markets. Cinemaware's unique franchises and intellectual
property were used to bring its compelling and immersive game style to today's
gamers. With his background in film production and video game development, Lars
was uniquely qualified to re-launch Cinemaware in 2000. We're privileged and
excited to have a person with his capabilities join eGames to lead our
development to its next stage of growth."
Rich Siporin, Vice President of Sales and Marketing for eGames added, "eGames
continues to enjoy success within the value priced, casual game arena, and our
strategy remains focused on growing this segment of our business. It is clear,
however, that we now need to take advantage of new and different product genres
and platforms that have mass-market appeal. Cinemaware not only provides the
opportunity to venture into higher priced PC titles, it provides us with the
opportunity to launch titles into established and growing console and handheld
markets."
"The Cinemaware acquisition gives us flexibility to be a viable player
within the entire game marketplace versus just the casual gaming segment,"
Siporin added. "Our strategy has always been to merge with or acquire a
complementary partner to expand our business and increase our importance to
consumers, retailers and distributors. Ultimately, we plan to become a full
service publisher reaching all gaming segments within the entire video game
industry. Cinemaware is an additive opportunity for eGames. It is entirely
incremental to our existing business and provides us with an important source of
proprietary brands and intellectual properties which will be instrumental in
our future development plans."
About eGames, Inc.:
eGames,Inc., headquartered in Langhorne, PA, publishes and markets a diversified
line of Family Friendly(TM), affordably priced consumer entertainment PC
software games. The Company promotes the eGames(TM) brand in order to generate
customer loyalty, encourage repeat purchases and differentiate eGames software
products to retailers and consumers. Additional information regarding eGames,
Inc. can be found at www.egames.com. eGames -- Where the "e" is for
Everybody!(R)
About Cinemaware, Inc.:
Cinemaware, Inc. is a developer of interactive entertainment software for PC and
console systems. Originally founded in 1986, Cinemaware has developed a wide
range of critically acclaimed and highly successful games for a variety of
personal computers and video game systems.
Forward-Looking Statement Safe Harbor:
- --------------------------------------
This press release contains certain forward-looking statements, including
without limitation, statements regarding: the anticipated closing date for the
Cinemaware transaction; the employment of Mr. Batista as the Company's Vice
President of Development; the consideration eGames expects to issue to
Cinemaware in exchange for its assets; the Company's plan to take advantage of
new and different product genres and platforms with mass-market appeal,
potentially launch higher priced PC titles, and expand the Company's product
offering beyond the casual gaming market; and other statements that contain the
words "believes" ,"expects", "may" "should" or "anticipates". The actual results
achieved by the Company and the factors that could cause actual results to
differ materially from those indicated by the forward-looking statements are in
many ways beyond the Company's control. The Company cautions readers that the
risks and uncertainties that may affect the Company's future results and
performance include, but are not limited to, those discussed under the heading
"Factors Affecting Future Performance" in the Company's Quarterly Report on Form
10-QSB for the quarter ended March 31, 2005 and Annual Report on Form 10-KSB for
the fiscal year ended June 30, 2005, both filed with the Securities and Exchange
Commission.
Contacts:
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eGames, Inc.
Jerry Klein, President and CEO
(215) 750-6606 (Ext. 118)
Rich Siporin, Vice President Sales and Marketing
(215) 750-6606 (Ext. 129)
Cinemaware, Inc.:
E-mail: press@cinemaware.com
Web: www.cinemaware.com