21st May 2007 12:17
Netplay TV PLC21 May 2007 18 May 2007 NetPlay TV PLC ("NetPlay" or the "Company") Termination of MChex agreement and closure of operations NetPlay TV plc announces that the agreements between MChex Limited and MobileATMLimited have been terminated with immediate effect The MChex business has been incurring substantial losses since acquisition,£542,000 in 2005 and £501,000 in 2006. In December 2006, an in-depth review ofthe business was initiated with a view to selling the business. Despite anumber of enquiries, however, the Company has to date not received any firmoffers for the MChex business. As a result of the termination of the agreementswith MoblieATM Limited, NetPlay TV plc has therefore taken the decision thatMChex Limited should cease to trade. As a direct result, the current cash losses of the business, which are in excessof £25,000 per month, will be saved. Following the closure of the business anexceptional charge of £800,000 will be made in respect of the carrying value ofthe company and the cost of closure of the business. The directors believe this action brings certainty, allowing it to focus onbuilding NetPlay's interactive gaming business. For further information contact: Martin Higginson 020 7299 2880Chairman and Chief Executive Pat GreeneFinance Director This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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