Livermore Regulatory News (LIV)

13 Oct 2006 15:42

Empire Online Limited13 October 2006 13 October 2006 Empire Online Limited US LEGISLATION - UPDATE Further to Empire Online's announcement of 2 October 2006, new legislationaffecting on line gaming in the USA has been introduced today. After takingextensive advice on this matter the Company will terminate its USA business withimmediate affect. This action will have a material adverse effect on Empire Online's futureearnings. Currently, approximately 65% of Empire Online's revenues are generatedfrom customers based in the USA. The Company's margins will also be affected bythe loss of this revenue due to operational gearing and the higher gross margingenerated from the USA business. The Board is confident that the business will continue to generate positiveEarnings before interest, tax, depreciation and amortisation (EBITDA) for 2007.In the first half of 2006 more than 55% of new real money player sign ups camefrom outside the USA. The Company has considerable cash resources at itsdisposal and the Board re affirms its intention to pay an interim dividend of1.7cents per share. The Company will now focus its resources on two key areas: developing its market position in online gaming outside the USA, leveraging its expertise in on line marketing to other sectors in which it hasnot previously been involved. Enquiries: Empire Online Limited +357 25 847 700 Noam Lanir, Chief Executive Officer Andrew Burns, Chief Financial Officer Hudson Sandler +44(0) 20 7796 4133 Jessica Rouleau END This information is provided by RNS The company news service from the London Stock Exchange