Interactive Systems Worldwide Announces Agreement in Principle for Extension of Contract With Sportingbet
WEST PATERSON, N.J., April 4, 2008 /PRNewswire-FirstCall/ -- Interactive
Systems Worldwide, Inc. (OTC Bulletin Board: ISWI) has announced that its
wholly-owned subsidiary, Global Interactive Gaming Limited (GIG), has reached
an agreement in principle with Sportingbet Plc, the online sports betting and
gaming group.
The original contractual agreement, which specified a revenue share
arrangement between the companies, had been amended in May 2007 to provide
fixed monthly fees to GIG. Although the original agreement expired on
November 1, 2007, both companies continued to operate under the amended terms
while negotiating an extension. The new agreement extension specifies that
GIG's monthly revenue would be determined by the larger of a revenue share
percentage and a new minimum monthly guarantee. This combination of revenue
share coupled with a minimum monthly guarantee will result in significantly
higher monthly fees to GIG than the current agreement. This new financial
agreement, when signed, will be made effective retroactively to February 1,
2008. The companies expect the formal extension to be signed in the next few
weeks. It is also anticipated that the new agreement will be renegotiated and
extended again, prior to the new professional football (i.e. soccer) season
that starts in August 2008.
Bernard Albanese, the Company's CEO, stated, 'We are very pleased with
this agreement to extend the contract. It shows that Sportingbet is pleased
with the growth in revenue from the service we've provided them during the
last year, and that they are optimistic regarding its future growth. In
addition, the extension will provide the Company with a much-needed increased
level of stable cash flow. It is expected that the anticipated cash receipts
will allow GIG to be cash flow positive on a go-forward basis. This is the
first time that GIG has been able to achieve this milestone.'
About Interactive Systems Worldwide, Inc.
Interactive Systems Worldwide, Inc. (OTC Bulletin Board: ISWI.OB) has
designed, developed and patented a proprietary software system, the
SportXction System, which enables play-by-play wagering during the course of
live sporting events. ISWI, through its wholly owned subsidiary Global
Interactive Gaming Ltd. (GIG), operates the SportXction(R) System in the U.K.,
in conjunction with established media and traditional wagering partners. The
system can accept wagers from the Internet, handheld wireless devices,
interactive televisions, and standalone kiosks. The system can be used for
any live broadcast event.
Contact:
Interactive Systems Worldwide, Inc.
Bernard Albanese
Chief Executive Officer
Phone: 973-256-8181
FORWARD-LOOKING STATEMENTS: The forward-looking statements contained
herein are subject to certain risks and uncertainties that could cause actual
results to differ materially from those reflected in the forward-looking
statements, including, but not limited to, whether GIG will generate a
positive cash flow based on this new agreement. Readers are cautioned not to
place undue reliance on these forward-looking statements, which reflect
management's analysis only as of the date hereof. The Company undertakes no
obligation to publicly revise these forward-looking statements to reflect
events or circumstances that arise after the date thereof. Readers should
carefully review the risks described in other documents the Company files from
time to time with the Securities and Exchange Commission, including Annual
Reports, Quarterly Reports and Current Reports on Form 8-K.
SOURCE Interactive Systems Worldwide, Inc.
