Electronic Game Card, Inc. Signs Five-Year License Agreement for Distribution into Native American Indian-owned Casinos and Lotteries
Tuesday September 16, 7:55 am ET
Agreement calls for minimum fees over the five-year period of $10.25 million, beginning with first year payments of $1 million
LAS VEGAS, Sept. 16 /PRNewswire-FirstCall/ -- Electronic Game Card, Inc. (OTC Bulletin Board: EGMI - News; "EGC"), announced today that it has signed a five-year license agreement containing established yearly minimum royalty payments with Arizona based Sovereign Game Cards, LLC ("Sovereign") for distribution of the EGC Electronic GameCard(TM) into Native American Indian-owned casinos within the United States and Canada.
Tom L. Darwin, founder and managing principal of Sovereign, with his affiliates and distributors has a 20-year history of service to the Native American Indian community, and has financed numerous projects, including Native American casinos. Mr. Darwin recently established Sovereign specifically to introduce, sell and distribute the EGC Electronic GameCard(TM) into Native American Indian territories.
Tom Darwin expressed his company's enthusiasm in signing the licensing agreement with Electronic Game Card, Inc., "The EGC Electronic GameCard(TM) is the next generation of instant win tickets. Consumer research shows how much players enjoy the EGC Electronic GameCard(TM) and the play action of the approved NIGC Class II product. Sovereign's exclusive right to market and sell to Native American Indian Casinos and Lotteries in the United States and Canada presents a tremendous opportunity, and we are eager to launch our national marketing strategy into contracted sales across North America. Sovereign Game Card and its affiliates and distributors have long established relationships with tribal leaders and Native American communities throughout the U.S., including more than twenty-five tribes representing dozens of Indian Casinos in Florida, New Mexico, Arizona, Oklahoma, Oregon, Louisiana, Michigan and California."
"Electronic Game Card has delivered six consecutive quarters of profitable growth. With the additional support of the company's new Board of Directors, we intend to expedite this growth with the addition of similar, well entrenched manufacturing, distributing and selling relationships as we have just signed with Sovereign. Sovereign now has the exclusive right to sell the EGC Electronic GameCard(TM) into this multi-billion dollar market place, covering approximately 25 states. We look forward to their success and growth," commented Lord Steinberg, executive chairman of EGC. "It is our intention to develop similar EGC arrangements for the entire and growing product portfolio globally and believe this strategy will have a direct beneficial impact on our company."
Under the terms of the 5-year exclusive agreement, Sovereign will produce, market, sell and distribute EGC Electronic GameCard(TM) units to Native American Indian-owned casinos and Native American Indian charity and beneficial lotteries within the United States and Canada. EGC will be entitled to royalty fees that will range from 10 percent to 15 percent of the gross selling price of the EGC Electronic GameCard(TM). EGC will receive minimum royalty fees of $1 million during the first twelve months following commencement of the contract, increasing by $500,000 each succeeding twelve-month period through the fourth term, and increasing $750,000 in the final twelve-month period. It is further stipulated that the launch of the agreement will start prior to December 31, 2008.
Contact:
Yvonne L. Zappulla
Managing Director
Grannus Financial Advisors, Inc.
Call 212-681-4108 or e-mail yvonne@grannusfinancial.com
or
Roger Holdom
Electronic Game Card, Inc.
Call +44 207 451 2480 or e-mail investor.relations@electronicgamecard.com
About Electronic Game Card, Inc.
Electronic Game Card, Inc., (OTCBB: EGMI - News), develops, produces and markets innovative games to the promotional industry worldwide, toys and games, casinos and lottery. The Company's lead product is the EGC Electronic GameCard(TM), a unique credit card-sized pocket game combining patent-pending proprietary technology of interactive capability with "instant win" excitement. The EGC Electronic GameCard(TM) can be programmed to suit a variety of gaming and promotion applications.
EGCI's client base is across a multi-billion dollar global market of, sales promotion, gaming and casinos, Indian gaming and state and national lotteries markets. EGC develops sales and marketing relationships with agents and distributors globally and currently has agents and distributors in North America, United Kingdom, Ireland, Mexico, Italy, Sweden, Norway, Denmark, Finland, South Africa Australia, New Zealand and Japan.
For further information please visit www.electronicgamecard.com
In February 2008, Electronic GameCard(TM) received Gaming Laboratory International approval for security and product robustness. In July 2005, the Public Gaming Research Institute (PGRI) named the Electronic GameCard(TM) as a 2005 Lottery Product of the Year.
Certain statements in this news release may constitute "forward-looking" statements within the meaning of section 21E of the Securities and Exchange Act of 1934. The Company believes that its expectations, as expressed in these statements are based on reasonable assumptions regarding the risks and uncertainties inherent in achieving those expectations. These statements are not, however, guarantees of future performance and actual results may differ materially. Risk factors are listed in the most recent Annual Report on Form 10-KSB and Quarterly Report on Form 10-QSB filed with the Securities and Exchange Commission.
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Source: Electronic Game Card, Inc.
