18th Mar 2005 07:00
FOR IMMEDIATE RELEASE 18 March 2005 BETINTERNET.COM PLC ("betinternet" or the "Company") UPDATE The Board of betinternet, the global on-line gaming group, is updatingshareholders on two recent developments.Global Coresports Limited (`Coresports')betinternet has reached agreement to take a 22.5% stake in Coresports for aconsideration of ‚£250,000. Coresports was formed to exploit artificialintelligence technology to create a unique virtual reality gaming experiencethat can be played in real-time and on-demand in a multi-player format. Thefirst application, which has a working title of `coreFootball' is an onlinefootball management game and is already in an advanced form of development witha global launch anticipated in mid 2005. Following `coreFootball', other sportsteam games are expected to be developed.The system architecture has been developed over the last 3 years by six leadingCambridge academics, all of whom have extensive experience of start-upventures, particularly in the area of biotechnology. Specifically, use has beenmade of the technology involved in drug design applications to simulate`real-time' reactions by the virtual reality team players. Individuals withinthe academic team have backgrounds of playing and coaching soccer atprofessional and amateur levels and the team is therefore able to match thetheoretical scenarios with practical experience.betinternet has negotiated an exclusive six month agreement to exploit thewagering opportunities presented by the game. In addition, through its equitystake in Coresports, betinternet will benefit from the global licencing of thewagering and skill-based applications provided by `coreFootball' and thesuccessor team games as they are rolled out.International Players' Association (`IPA')Following its statement of 27 January 2005, the board of betinternet has becomeaware that two officers of IPA are being investigated by New York regulatoryauthorities. Accordingly, activities with IPA, which has provided EuroOff-Track, a subsidiary of betinternet, with player referral services forapproximately two years, have been suspended, pending further clarification.The business introduced by IPA brought large turnover, but low margins (lessthan 2%). Turnover in the second half of the year is likely therefore to beless than in the first half, but the margin percentage is expected to improve.In addition, the Company is taking steps to accelerate and find alternativesources of income. Specifically, encouraging progress is being made towards thelaunch of a similar high volume activity which, if successful, would be managedentirely by the Company, not requiring the assistance of a third party, such asIPA, thus enhancing future returns. If agreement is reached on this newactivity, the Company expects that it will be launched, in full co-operationwith the US tracks, around the start of betinternet's new financial year. Afurther statement will be made regarding this, once terms have been agreed.Commenting today Paul Doona, Managing Director of betinternet said: "We areconstantly seeking new income streams to diversify our business, and areespecially pleased at the potential new income stream which an interest inCoresports will provide us with. This, together with a re-vamped high volumewagering activity, is anticipated, in a relatively short period of time, toreplace the business lost by the suspension of the IPA activity." END For further information:betinternet.com plc Tel: 01624 629699Paul Doona, Managing DirectorWaughton Tel: 020 7796 9999Robin HepburnWilliams de Broe Tel: 0113 243 1619Joanne LakeENDBETINTERNET.COM PLCRelated Shares:
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