23rd Aug 2007 07:01
Media Corporation23 August 2007 For Immediate Release 23 August 2007 Media Corporation plc ("Media Corp" or the "Group") Sale of Casino.co.uk business to Gaming Portals Limited for up to £3.625 million The Board of Media Corporation plc ("Media Corp" or "the Group"), is pleased toannounce the sale of casino.co.uk and related portal assets (the "Business")to Gaming Portals Limited, a subsidiary of CryptoLogic Limited, for a cashconsideration of up to £3.625 million. The gross profits attributable to theBusiness in the year ending 30 September 2006 were approximately £0.62 million*. The initial consideration for the disposal of the Business is approximately £3million in cash, with an additional £0.625 million payable after a six monthperiod, assuming revenue from the assets exceeds pre-agreed performance targetsin that period. Media Corp and its directors, Jason Drummond and Justin Drummond, have agreed to2 year restrictive covenants as part of the transaction**. The Gambling.combusiness is carved out from these restrictive covenants. Commenting on the transaction, Justin Drummond, Chief Executive of Media Corp,said: "As highlighted in the annual report and accounts for the year ending September2006, the disposal of the casino.co.uk business is a key part of the overallstrategy of the Group to focus on its online advertising businesses anddiversify into other markets. This transaction will also enable the Group tofocus its resources on the further development and marketing of our leadingGlobal gaming portal Gambling.com. The new cash raised, combined with the Group's existing £4 million cash balancehas created an excellent platform to accelerate growth through acquisitions andinvestment in the current websites and advertising businesses". \* The Net Asset Value of these assets is £0.235 Million. ** The Directors have agreed to gift to Media Corp the after-tax proceeds of the£15,000 consideration received by each of them for entering into theserestrictive covenants. For further information please contact: Media Corporation plcJustin Drummond, Chief Executive+44 (0)20 7618 9000 Buchanan CommunicationsCharles Ryland/Suzanne Brocks/Susanna Gale+44 (0)20 7466 5000 Canaccord Adams LimitedMark Ashurst, Managing Director+44 (0)20 7050 6500 Notes to editors: Listed on the AIM market of the London Stock Exchange, Media Corp, is a leadinginternet media and advertising group focused on website publishing and onlineadvertising. The Group has two principal divisions: Website Publishing - Media Corp has a diverse publishing division specialisingin online media. Our impressive list of websites includes a number of marketleading sites Including www.gambling.com, www.creditcardexpert.co.uk,www.onthebox.com, www.flightcomparison.co.uk Online Advertising - Formed in 1996, Eyeconomy specialises in mass reachcampaigns to over 30 Million unique consumers per month via its own proprietaryad-serving and tracking technology for clients including AOL, Dell and AmericanExpress. www.eyeconomy.co.uk www.mediacorpplc.com This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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