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Source: Hayden
Communications, Inc
West Paterson, NJ,
Interactive Systems Worldwide, Inc. (NASDAQ SmallCap:ISWI) announced today that its exclusive licensee and financial partner, Global Interactive Gaming, Ltd. (GIG), signed a landmark agreement with Telewest Communications, one of the leading broadband communications and media groups in the UK, to provide them with the world's first, fully interactive, play by play betting system, for use in conjunction with their digital TV service. Telewest provides cable television and Internet access to approximately 1.7 million households (approximately 4 million customers). This agreement between GIG and TeleWest Communications will provide its subscribers with a betting service that uses as its basis ISWI's patented SportXction(TM) gaming system. In this agreement to jointly develop and adapt GIG's
interactive gaming product, whose core technology is licensed from ISWI,
the two companies will be ready to roll out a test service in Fall of 2001,
with a full launch to Telewest digital cable TV customers early in
Barry Mindes, Chairman & CEO of Interactive Systems Worldwide, Inc. stated: "This first agreement between GIG and a major digital TV provider is a significant milestone for both ISWI and GIG and validates GIG's gaming service for interactive television providers. By gaining acceptance for their product from one of the leading communications and media groups in the UK, GIG has further verified its ability to get SportXction(TM) based systems implemented by a substantial number of installed iDTV subscribers, thus reaching a critical mass with its first contract and tapping into what is expected to be a multi-billion dollar market. We believe our software technology is ideally suited for iDTV as it requires no computer literacy to play the game, but merely the use of a standard TV remote control while viewing a sporting event on television. This system will allow cable and satellite providers to meaningfully increase revenue per subscriber, while providing GIG, and thereby ISWI, with a continuing income stream. This is a monumental first step for our partnership.'' Telewest sports viewers will be among the very first
in the world to enjoy enhanced on-screen action, thanks to GIG's real-time,
screen-based betting service--which, uniquely, allows frequent but relatively
small wagers to be placed on the outcome of individual
GIG's system, based on ISWI's patented technology, is very easy to use via on-screen menus, and its artificial intelligence-generated odds allow high-frequency, low denomination wagering on betting propositions that will appeal to a wide subscriber audience. With the UK iDTV betting market forecast by ABN AMRO to be worth (pound)1.4billion ($2.04 billion US) by 2004, Telewest's choice of GIG's service presents a significant opportunity to produce substantial revenues. GIG has designed its revolutionary new service for
the large audience who an place occasional wager, and for those others
who would like to place an occasional wager, but who are not comfortable
venturing into a betting shop. Users of the Telewest system will
Comments Cees Zwaard, CEO of GIG Ltd, "I'm absolutely delighted that Telewest Communications shares our vision that consumers are ready to invest in interactive Digital TV services that provide genuinely enhanced enjoyment. "Our unique, in-run, play-by-play betting service
is the ideal solution for digital TV platforms. For the viewer, its instantaneous
response to live events allows betting to become an integral part of live
sports broadcasts, vastly increasing enjoyment by quite
"This agreement is also an important step towards
achieving GIG's stated ambition of becoming the world's leading interactive
in-run gaming company on all digital entertainment platforms. Further partnerships
in the UK and mainland Europe will be announced shortly.''
About ISWI - GIG License Agreements Under the Agreements, signed on March 17, 2000, GIG was granted the exclusive license to market, distribute and use the Company's interactive SportXction(TM) software, technology and patents where such technology is legally usable, including for contests and wagering on sporting events world-wide. Excluded from the licenses are the use of the System in Nevada for wagering, and the application of the Company's basic technology and patents to lotteries and financial transactions (i.e., stock, bond, option and currency trading). Under these Agreements, the Company will be paid
25% of the gross profit for the use of its technology for contests or other
transactions. For wagering, the Company will be paid the lesser of 25%
of the gross profit or 1% of the gross handle. The Company will bear no
share of the cost of equipment, facilities or other operating expenses
of GIG. These percentage fees are subject to guaranteed minimum annual
license fees of $3 million in the first year; $5 million in the second
year; and increasing by 20% per year thereafter, for a total minimum of
about $240 million over the remaining approximately 12 year term of the
Agreements, after which the license to GIG is fully paid. At all times
the minimum license fee for the next four quarters is kept in a third party
escrow account.
About SportXction(TM) SportXction(TM) is a patented, real-time, software
system, which allows a player to make play-by-play wagers on a sporting
event while the event is in progress. Wagering may be conducted while viewing
a television broadcast of a sporting event. The wagers
About Telewest Communications Telewest Communications, the broadband communications
and media group, currently provides multi-channel television and Internet
services to 1.7 million households, and voice and data telecommunication
services to over 69,000 business customers. Its content
About GIG & Prisma iVentures Global Interactive Gaming Ltd was created in April 2000 as a joint venture between Prisma iVentures Ltd, and Multisports Games Development, Inc (MGDI) of Delaware, USA. Prisma iVentures is a dedicated digital services company 90 percent owned by TaurusSport GmbH. The latter is a wholly owned subsidiary of KirchMedia GmbH & Co. KgaA, the division of Kirch Group responsible for commercial free-television, license trading, New Media, sport, film and TV production and for film technology. KirchMedia is a multimedia conglomerate whose annual revenues are in the multi-billion dollar range. Formed in 1999, Prisma iVentures' mission is to create a portfolio of companies focusing on different aspects of the digital distribution and production of sports content. By identifying and developing added value for rights holders in the future, the aim is to create a significant lead in new media applications for sport. Prisma iVentures' sister company, KirchSport GmbH,
is wholly owned by TaurusSport and manages the broadcasting rights for
world-class sports properties such as the 2002 & 2006 FIFA World Cup(TM)
in Europe; the Ice Hockey World Championship; the
This press release contains
``forward-looking statements'' made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995 including, but
not limited to, whether the interactive betting service will be launched
on the projected dates; and whether use if the system will increase Telewest's
subscriber revenue and the consequences thereof to GIG and the Company.
Investors are cautioned that these statements involve risks and uncertainties.
Additional risks and uncertainties are detailed in the Company's filings
with the Securities and Exchange Commission, including its Form 10-KSB
for the year ended September 30, 2000.
For ISW: (973) 256-8181
Bernard Albanese (President)
For Investors: (843) 272-4653
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