Acquisition

25 Aug 2006 07:01

Catalyst Media Group PLC25 August 2006 25 August 2006 Catalyst Media Group plc Acquisition Catalyst Media Group plc ("CMG" or the "Company") announces that further to theannouncement on 29 June 2006 it has today completed the acquisition of thebalance of the total issued share capital of Spoof.com Ltd ("Spoof"). Spoof hasdeveloped an on-line head-to-head version of the traditional spoof pub game.This will be a key constituent of a new on-line gaming platform to be launchedby CMG, complete with a suite of fixed odds and exclusive head-to-head games.The platform will enable gamers to play head-to-head for cash or prize basedgames across mobile phone, PC and TV platforms. Paul Duffen, CEO of CMG commented "The head-to-head gaming sector is an underexploited and potentially lucrative market with exciting growth prospects. Theacquisition of Spoof fits perfectly with our recently announced partnership withYooMedia plc, bringing together their leading interactive technology and ourexpertise in marketing and distribution to portals, ISP's and on-linecommunities. As a result, the total incremental cost to CMG of running theon-line gaming platform will be less than £100,000 per annum. This initiativecombines our experience in the distribution of on-line content, with our focuson the gaming and betting industry as reflected in our acquisition of a 22.16%stake in SIS in September 2005." CMG acquired 9.09% of Spoof.com Ltd in November 2005 for a cash consideration of£25,000. Further to the announcement made on 29 June 2006, the consideration forthe acquisition of the remaining 90.91% has changed to comprise a total of55,556,107 new ordinary shares at 1p each in CMG ("CMG consideration shares"),25,252,776 of which will be issued and allotted at completion, with the balanceof up to 30,303,331 to be issued on satisfaction of certain performance targetsover a three year period from the date of launch, expected to be in the firstquarter of 2007. All shareholders who currently own more than 10 per cent of the issued sharecapital of Spoof have entered into lock-in arrangements, pursuant to which theymust retain 50 per cent of the CMG consideration shares issued to them for aperiod of six months following allotment. They will receive 9,828,377 of the CMGconsideration shares issued at completion and up to 21,622,432 of the total CMGconsideration shares that may be issued. Enquiries:Paul Duffen, Chief ExecutiveCatalyst Media Group plc+44 20 7927 6699 This information is provided by RNS The company news service from the London Stock Exchange