Under strict embargo until: 0900 EST – Monday 28th March 2005
ELECTRONIC GAME CARD WIDENS INSTITUTIONAL SHAREHOLDER BASE
- More than $8 million raised -
NEW YORK, LONDON– March 28th 2005, Electronic Game Card, Inc (OTCBB: EGMI), the US rewards based games company, today confirmed that the Company has closed a successful private placement of $8,481,000 in convertible preferred stock.
John Bentley, Chairman of Electronic Game Card, Inc. commented:
“This widening of our shareholder base including several notable institutional investors represents an important endorsement of our business strategy. We have made important inroads into the US lottery market since our introduction to the market a year ago and expect to broaden our presence in the wider US gaming market this year. In Europe and the US likewise we continue to pursue our activity in the sales promotion markets for prize and competition games while at the same time reviewing options in broadband and mobile phone gaming markets where these can complement our existing skill sets and game products. I am pleased that the success of this funding, which was oversubscribed, allows us greater scope to focus on opportunities in a wider range of potential markets for our products on a global basis.”
Electronic Game Card owns a unique proprietary pocket sized digital game platform known as an electronic extended play GameCard that has multiple applications in the instant lottery, gaming, sales promotion reward and competition markets. Collectively these markets are valued at over $100 million.
In December 2004, Electronic Game Card confirmed that the Iowa State Lottery was placing an initial follow-on order of over half a million GameCard units following a successful pilot of the product earlier in the year. Other US lotteries are expected to follow this lead in the near future.
Indigo Securities LLC acted as placement agent on the transaction.
About Electronic Game Card
Electronic Game Card, Inc., is a listed corporation (OTCBB: EGMI) distributing reward based digital games. Electronic Game Card owns a unique proprietary US pocket sized digital game platform known as an electronic extended play GameCard which has multiple applications for several industries. These include the "instant" lottery and charitable markets as well as the sales promotions reward and competition markets. EGC has developed its sales promotion range under the XOGOTM brand. For further information please visit www.electronicgamecard.com, and www.xogo.net
Safe Harbor Statement
All forward-looking statements contained herein are deemed by the Company to be covered by and to qualify for the safe harbor protection provided by the private securities litigation reform act of 1995 (the "1995 act"). Shareholders and prospective shareholders should understand that several factors govern whether any forward-looking statement contained herein will be or can be achieved, any one of those factors could cause actual results to differ materially from those projected herein. These forward-looking statements include plans and objectives of management for future operation, including plans and objectives relating to the products and the future economic performance of the Company. Assumptions relating to the foregoing involve judgments with respect to, among other things, future economy, competitive and market conditions, future business decisions, and the time and money required to successfully complete development projects, all of which are difficult or impossible to predict accurately and many of which are beyond the control of the Company. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of those assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in any of the forward-looking statements contained herein will be realized. Based on actual experience and business developments, the impact of which may cause the company to alter its marketing, capital expenditure plans or other budgets, which may in turn affect the company's results of operations in light of the significant uncertainties inherent in the forward-looking statement included herein, the inclusion of any such statement should not be regarded as a representation by the Company or any other person that the objective or plans of the Company will be achieved.
- Ends -
Press relations David Owen (gth media) 212 672 1870
david@gthmedia.com
Toby Hall (gth media) +41 22 747 7501
toby@gth.co.uk
Corporate John Bentley 646 723 8936
(EGC - CEO)
John.Bentley@electronicgamecard.com