TAB Will Also Invest $4.8 Million (US) in Mikohn's Australian Subsidiary
Mikohn Gaming Corp. has been awarded an exclusive contract from TAB Limited (Australia: TAB.AX) of Sydney, Australia to install the first wide area progressive slot system in the Australian state of New South Wales, along with an exclusive arrangement to supply signage and electronic displays for the system. In addition, TAB will acquire a 50 percent equity interest in Mikohn's Australian subsidiary, Mikohn Gaming Australasia Pty. Limited.
David J. Thompson, Mikohn's chairman, president and chief executive
officer, stated: ``We are very pleased to establish this
strategic relationship with TAB Limited, which has a 15 year exclusive license for participation games in New South Wales.
The award validates Mikohn's technological leadership with our CasinoLink(TM) product. We expect this contract to have a
significant impact on Mikohn's financial results, reflecting recurring revenues from royalties, along with multi-million dollar sales
of signs and electronic displays through the company's Australian subsidiary.''
Proceeds from the transaction will be used for working capital and to
pay down debt. The investment by TAB is subject to
regulatory approval. In addition, Mikohn will also receive recurring royalties based on the number of units connected to the
wide area progressive system, with a minimum guarantee of $960,000 (US) in annual royalties.
Current plans are that the wide area progressive jackpot system will
be operational by March 31, 2000. The system links slot
machines at geographically separate locations, reserving a small percentage of each wager and pooling it to create a
progressively larger jackpot.
Warren Wilson, managing director of TAB Limited, stated: ``Mikohn brings
us proven technology, along with demonstrated
leadership in casino signage and electronic displays. We look forward to working closely with them to foster the growth of
Mikohn Australasia in Australia, New Zealand and the Pacific Rim.
``We are very excited about introducing the first wide area progressive
jackpot system into New South Wales. While we plan
to begin operations with approximately 2,400 games on the system, we believe the market potential to be much greater.''
The wide area progressive system will be based on Mikohn's advanced
CasinoLink technology, which has unique capabilities in
networking slot operations at geographically separate locations. The New South Wales system will be similar to Mikohn's
successful CasinoLink installations in four Canadian provinces; St. Petersburg and Moscow in Russia; and casinos operated by
Holland Casino. In recent years, Mikohn's CasinoLink has emerged as the industry's hottest selling system internationally.
TAB Limited is a diversified provider of entertainment services specializing
in gaming and wagering. The company has an
exclusive license to monitor 95,000 slot machines at 3,000 venues in New South Wales, primarily in the private club market.
TAB reported revenues of $631 million (AUD), and net income of $53 million for its most recent fiscal year ended June 30,
1999. Its shares are traded on the Australian Stock Exchange.
Mikohn pioneered the development of progressive jackpot technology and
exciting visual displays for casinos. Today, the
company designs, develops, manufactures and markets a wide range of proprietary products for the casino gaming industry
worldwide including games, systems and signs. For further information, visit the company's website: www.mikohn.com.
Safe Harbor Statements under The Private Securities Litigation Reform
Act of 1995: Except for historical information,
statements in this release regarding the business outlook for Mikohn Gaming Corporation (the Company) are forward looking
and are subject to certain risks and uncertainties including the overall industry environment, customer acceptance of the
Company's new products, delay in the introduction of new products, the further approvals of regulatory authorities, adverse
court rulings, production and/or quality control problems, the denial, suspension or revocation of privileged operating licenses
by governmental authorities, competitive pressures and general economic conditions as well as the Company's debt service
obligations and other factors indicated from time to time in the Company's filings with the Securities and Exchange Commission.
The Company undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated
events as they occur.
SOURCE: Mikohn Gaming Corp.