NPT.L Regulatory News (NPT)

26 Feb 2007 07:03

Netplay TV PLC26 February 2007 Date: 26 February 2007 On behalf of: NetPlay TV plc ("NetPlay TV" or "the Company") Embargoed for: 0700hrs NetPlay TV Acquires Abstract Gamesto Enhance Interactive Gaming Experience for Customers • Abstract Games currently has a database of known prize competition players in excess of 550,000 names and addresses. • 6,700 people play its weekly 'Grab a grand' competition. • Total NetPlay TV database now exceeds 800,000. NetPlay TV plc (AIM: NPT), the interactive TV gaming company, is pleased toannounce that it entered into an agreement on 23 February 2007 to acquire theentire issued share capital of Abstract Games Limited ("Abstract"), for a cappedmaximum total consideration of £4.0 million. Abstract, based in Sunderland, UK, specialises in the production of interactiveprint media. This ranges from the production of interactive gamecards, insertedinto newspapers and magazines, to tailored interactive mail pieces sent to theircustomer database of 500,000 competition players. The directors of Abstracthave over 20 years of experience in the promotion of printed games ranging fromthe creation of Bingo gamecards to trivia promotions for newspapers, as well asdatabase management. Abstract's three key director shareholders will remainwith the business. This acquisition further develops NetPlay TV's interactive gaming offeringallowing the Company to develop unique interactive gaming experiencesencompassing printed media, internet, mobile and television in one trulyconverged offering. The Company acquired the online charity lottery 'monday' from Chariot (UK) plc,("Chariot") in January 2007 which was its first step into additional interactivegames. With the acquisition it also gained control over Chariot's entiredatabase comprising over 280,000 lottery players. The total database now standsover 800,000 and will be actively managed by Abstract going forward. The Companyalso acquired the TV production company Vegas247 Limited in December 2006, whichproduces an interactive live roulette show on Sky Channel 847. Theseacquisitions mark the beginning of the Company's aggressive expansion plans anddrive towards providing a 'one stop shop' in interactive gaming. The initial consideration for Abstract is £127,000 in cash (funded fromNetPlay's own cash resources), £173,000 in settlement of debt together with theissue of £200,000 worth of NetPlay TV shares (1,196,172 shares at 16.72p pershare) which are expected to be admitted to trading on AIM within five days. Amaximum deferred consideration capped at £3,500,000 is payable, 60% in loannotes and 40% in NetPlay TV shares, based on 1 x profit before tax for the next21 months from 23 February 2007, plus 4 x profit for the last three months ofthis period. The Company has the option to pay the entire amount in loan notesif it sees fit. Abstract Games Limited was established three months ago as the vehicle thatpurchased Mediaprom Limited, the UK interactive print media arm of MonstermobGroup plc. Abstract has generated a subscriber base of 6,700 customers eachpaying £2 a week to play. In the three months ended 31 December 2006, profitsfor the period were £8,000 before tax, and the company had net assets of £8,000as at that date. Martin Higginson, Chairman and CEO of NetPlay TV, commented: "The acquisition of Abstract Games is an excellent opportunity to enhance ourinteractive gaming offering further. In the next few years, all media will beinteractive in one form or another - print media is no exception. Linking thisformat with that of mobile, internet and TV will allow us to develop trusted andunique interactive gaming experiences. Today, NetPlay TV has a loyal customerbase and a database of a further 280,000 lottery players. Adding the AbstractGames database to this takes us to in excess of 800,000 quality names andaddresses. The excellent database marketing skills available to us through thisacquisition will enable us to target these databases to maximise playerinteractivity across all platforms." Ronnie Hatchett, Managing Director of Abstract Games Limited, said: "Having the opportunity to join the team at NetPlay TV is tremendously excitingfor us. We have always wanted to develop print products that interact with a TVshow, now we can!" -Ends - Enquiries: NetPlay TV plc Martin Higginson Via Redleaf Redleaf Communications Tel: 020 7822 0200Emma Kane/Sanna Lehtinen/Susan Quigley Notes to Editors: NetPlay TV plc, formerly known as Stream Group plc was established in 2000 todevelop and market a complete range of mass-market entertainment and informationproducts via the telephone and mobile. Stream was admitted to AIM in April 2001.The Company changed its name to NetPlay TV to highlight a change of directionfocusing on interactive gaming and gambling under a UK gaming license on 1stDecember 2006. NetPlay TV currently operates in a number of interactive media areas including: - interactive TV - online gaming - mobile gaming - gambling. NetPlay TV acquired: - TV production company Vegas247 in December 2006, which currently produces an interactive TV roulette show on Sky channel 847 - online charity lottery 'monday' in January 2007 from Chariot (UK) plc as well as an entire database of over 280,000 lottery players. Publication photographs are available from Redleaf Communications orwww.redleafpr.com This information is provided by RNS The company news service from the London Stock Exchange