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EXHIBIT 99.1
BUZZTIME ENTERTAINMENT, INC., A SUBSIDIARY OF NTN COMMUNICATIONS, INC.,
RECEIVES $1 MILLION INVESTMENT FROM SCIENTIFIC-ATLANTA, INC.
- Scientific-Atlanta and Buzztime Entertainment Team to Make the BUZZTIME
Trivia Game Show Channel Available to Cable Operators -
CARLSBAD, Calif., June 11 /PRNewswire/ -- NTN Communications, Inc. (Amex: NTN -
news), an interactive game content developer and distributor, today announced
that its subsidiary, Buzztime Entertainment, Inc. and Scientific-Atlanta, Inc.
(NYSE: SFA - news) have entered into an agreement to co-develop an application
to run the popular BUZZTIME interactive trivia game show channel on
Scientific-Atlanta's Explorer digital interactive set-tops, including the 6
million deployed today. BUZZTIME is the first interactive cable channel that
enables every member of the family to tune into live competitions with other
trivia buffs across the street or across the country at anytime. In addition,
Scientific-Atlanta has invested $1 million in Buzztime Entertainment in exchange
for a 6% ownership position and warrants to obtain another 1.5%. This investment
was made in the form of preferred stock issued by the Buzztime Entertainment,
Inc. subsidiary of NTN Communications, Inc. The preferred stock is exchangeable
at a later date into shares of NTN common stock under certain circumstances.
Under the terms of the agreement, Scientific-Atlanta is developing the
application to enable the BUZZTIME channel to operate on Scientific-Atlanta's
Explorer digital interactive set-top network. Buzztime Entertainment will
produce the game show cable channel and competitions. Scientific Atlanta will
provide BUZZTIME Entertainment with marketing and promotional support through
its Turn-Key Applications Group.
The channel includes BUZZTIME TV Trivia, Kids Only Trivia(TM), Sports Trivia(R)
and Countdown(R) general trivia and is designed specifically to add value to
existing digital cable systems. The channel will derive revenue from cable
operator license fees, premium subscription fees and advertising revenue. The
BUZZTIME channel will be showcased in Scientific-Atlanta's Booth #3100 at the
NCTA Cable 2001 Exhibition, June 11-13, in Chicago, IL.
Buzztime Entertainment owns and produces the vast library of interactive content
developed over the last 15 years by NTN Communications and is currently played
by millions of people each month on the NTN Network of 3,500 restaurants and
sports bars. Buzztime Entertainment also produces customized versions of its
programs for Microsoft's WebTV, Yahoo! Games and the Sprint PCS Wireless Web,
all from its ITV studio in Carlsbad, California.
"This is the first strategic investment into our Buzztime Entertainment
subsidiary. We created Buzztime Entertainment 18 months ago as a vehicle to
capture a share of the ITV and wireless consumer gaming markets," said Stan
Kinsey, chairman and CEO of NTN Communications, Inc. "This agreement with
Scientific-Atlanta gets us closer to creating a scalable business model for the
home consumer. It is our goal to continue to finance this endeavor with
strategic partners."
"Over the years, NTN has proven the popularity of our trivia game show channel
to millions of loyal fans. Deploying BUZZTIME as an interactive cable channel on
existing cable systems is key to our revenue model," said Tyrone Lam, President
of Buzztime Entertainment, Inc. "Cable
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operators are looking for incremental value for their existing digital cable
subscribers. The BUZZTIME channel is designed specifically to bring that value
without having to upgrade the set-top in the subscribers' homes."
When deployed, Buzztime Entertainment's multi-player gaming technology will
enable national competitions between players across numerous interactive
platforms. In the partnership, Buzztime Entertainment will be responsible for
the trivia game channel content including ongoing programming and player
promotions.
This release contains forward-looking statements, including statements relating
to future revenues, the development of the application, production of trivia
content and distribution channels, and future business plans, which are subject
to risks and uncertainties including changing economic conditions, product
demand and market acceptance risks, the impact of competitive products and
pricing, the effect of the Company's accounting policy and other risk factors
detailed in the Company's Securities and Exchange Commission filings, including
the Company's Report on Form 10-K for the fiscal year ended December 31, 2000,
its quarterly reports on Form 10-Q and reports on Form 8-K.
For additional information on NTN Communications at no charge, please call
1-800-PRO-INFO and enter ticker symbol NTN.
About BUZZTIME Entertainment, Inc. and NTN Communications, Inc.
Based in Carlsbad, Calif., NTN Communications, Inc. (Amex: NTN - news) is the
parent corporation of two business units: Buzztime Entertainment, Inc. and the
NTN Network(TM). Buzztime Entertainment, Inc., operators of BUZZTIME, an
interactive entertainment channel, develops and distributes "play-along" sports
and trivia games to a variety of interactive platforms, including WebTV, AT&T
Interactive Television, Sun Java TV, AOL International, Sprint PCS, Yahoo!
Games, the NTN Network, www.buzztime.com, www.predicttheplay.com and Midway
coin-operated games.
NTN's hospitality business is the largest out-of-home interactive television
network in the world. Through NTN's Digital Interactive Television (DITV)
technology, the NTN Network broadcasts entertainment and sports programming
engaging over 1.7 million players and reaching more than 6 million unique
consumers each month in more than 3,500 national hospitality locations like
TGIFriday's, Damon's, BW3, Bennigan's and others.
About Scientific-Atlanta
Scientific-Atlanta, Inc. (NYSE: SFA - http://www.scientificatlanta.com) is a
leading supplier of digital content distribution systems, transmission networks
for broadband access to the home, digital interactive set-tops and subscriber
systems designed for video, high speed Internet and voice over IP (VoIP)
networks, and worldwide customer service and support.
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