MIRA.L Regulatory News (MIRA)

23 Dec 2005 07:01

Yoomedia PLC23 December 2005 23 December 2005 YooMedia PLC ("YooMedia" or the "Group") Agreement with Gala Group YooMedia, the AIM-traded interactive media and games group, announces that it isentering a long term strategic agreement with Europe's largest integratedbetting and gaming operator, Gala Group ('Gala'), involving its gaming channel,Avago. Under this agreement, Gala is acquiring the Avago brand and associatedintellectual property together with the database of over 250,000 registeredcustomer accounts. Gala intends to re-brand the channel and re-launch it by the end of the thirdquarter of 2006. YooMedia continues to have a prominent interest in thebusiness, as well as continuing to provide its interactive gaming portal behindthe channel. The Avago channel is currently available on Sky Digital, channel181, and will launch on NTL as the first 'live' presented interactive gamingchannel on UK cable in early 2006. The terms of the agreement for YooMedia include an asset sale consideration, anongoing share of gaming revenues, and support and development contracts acrossthe initial period of in excess of three years. It is expected that thefinancial benefit to YooMedia will be a net income contribution of between £5.1mand £8.05m, depending on performance of the channel over the initial period.The proceeds of the agreement will be used by YooMedia to continue to supportthe relationship with Gala and to reinvest in the other parts of the Group, aswell as general working capital requirements. YooMedia Chairman, Michael Sinclair, said: "Having built a cross-platformservice, we are now delighted to have formed a partnership with the UK's leadingprovider of high-volume, low-stake leisure gaming. The deal highlights ourability to create value through our innovative approach in supplying digitalcontent for the fast-growing worldwide market. We look forward to working withGala, continuing to develop our cutting-edge software and being part of such astrong and exciting brand." Gala Group Chief Executive Neil Goulden said: "We are delighted to be enteringthe dynamic world of interactive television and this project will form a keypart of Gala's expanding multi-media strategy. Gala TV will allow additionalopportunities for our existing registered membership of over seven millioncustomers to access Gala's products and services. It will also allow Gala topromote its brand to a new audience across both the digital satellite and cableplatforms in the UK. " * * ENDS * * Contacts: YooMedia plc Neil MacDonald, Group Managing Director Tel: 020 7462 0870 St Brides Media & Finance Ltd Isabel Crossley Tel: 020 7242 4477 Gala Group Neil Goulden, Chief Executive Dominic Harrison, Trading Director Tel: 020 7611 1760 Brunswick Jon Rhodes / Mark Antelme Tel. 020 7404 5959 Notes on YooMedia plc YooMedia is one of the fastest growing interactive entertainment companies inthe UK. Essentially, it develops and delivers premium interactive content andservices to households and individuals via TV, the web, telephony and mobilephones. It has four main divisions: • YooMedia Dating - manages dating brands including Dateline andAvenues from over 20 locations throughout the UK. Operates across traditionalmedia, digital TV, internet and mobile phones. • YooMedia Gambling & Games - interactive fixed odds, play for funcasino and poker related games services for digital TV, the web and mobilephones. Brands include Avago and Channel 425. It also manages YooPlay, the onlyinteractive games channel found on all four Digital TV platforms in the UK. • YooMedia Enhanced Solutions (YES) - delivers interactive contentthat enhances consumer and audience experiences. Customers include the BBC,Nestle, Celador, William Hill, Channel 4, The Cartoon Network and HR Owen. • YooMedia Public Sector - provides digital solutions/mediaservices to leading public sector organisations including the NHS DirectInteractive TV service for the Department of Health, the Learning and SkillsCouncil TV Kickstart service and a range of local authority TV services. The Group's experienced management team includes: Chairman, Dr. MichaelSinclair, who holds a number of directorships in both the UK and the USA havingpreviously founded Lifetime Corporation; and Managing Director, Neil MacDonald,whose career spans 11 years in multimedia and interactive sectors plus a further19 years in the retail industry. Notes on Gala Group Gala Group is Europe's leading integrated gaming company operating casinos,bingo clubs, licensed betting offices and with a leading on line gamingbusiness. Through Coral Eurobet, Gala Group is now the UK's third largestbookmaker with 1,267 licensed betting offices, the UK's largest bingo operatorwith 167 clubs and a leading operator of casinos with 30 outlets. CoralEurobet's established online business, matched with Gala's web based products,makes Gala a significant online gaming operator with strong prospects forfurther growth. History • December 1997 - PPMV and Royal Bank Development Capital back John Kelly and Richard Sowerby's management buy-in team of Gala's 130 bingo clubs from Bass. • July 1998 - Gala acquires Ritz from Duke Street Capital for £36 million. Ritz has 17 bingo clubs. • June 1999 - Gala acquires Jarglen Group for £21 million. Jarglen has 10 bingo clubs. • March 2000 - CSFB Private Equity acquires Gala for £400 million. PPMV and Royal Bank Development Capital invest new money in the business. • April 2000 - Gala acquires Riva Clubs from NatWest Equity Partners for £90 million. Riva is the third largest bingo operator with 27 clubs. Gala becomes the UK's largest bingo operator overtaking Mecca. • December 2000 - Gala acquires Ladbrokes Casinos from Hilton Group for £235 million. Ladbrokes Casinos has 27 casinos in the UK in addition to casinos in the Isle of Man and Gibraltar. • February 2003 - Candover and Cinven back £1.24 billion buy-out of Gala. • January 2005 - Gala completes refinancing and returns £275m to shareholders. • August 2005 - Permira buys equity stake, valuing Gala at £1.89bn • October 2005 - Gala buys Coral Eurobet for £2.18bn This information is provided by RNS The company news service from the London Stock Exchange