Gamecom Signs Letter of Intent to Acquire Global VR; Acquisition Will Add Product Diversity and Substantial Revenue Stream
ARLINGTON, TX--(BUSINESS WIRE)--Jan. 10, 2001--GameCom, Inc. (OTCBB:GAMZ) -- a leader in interactive Internet gaming -- today announced that it has signed a letter of intent to acquire Global VR, a leading manufacturer of pc-based virtual reality arcade games.
Under the terms of the expected agreement, GameCom, Inc., www.GameComInc.com, will acquire Global VR, Inc., www.globalvr.com, in a stock-for-stock or merger transaction. Terms of the agreement were not disclosed. The agreement will be subject to a number of conditions, including approval by GameCom shareholders. The company's name and trading symbol will remain unchanged.
Global VR brings to GameCom ten issued patents and such new industry-leading products as "VR Vortek(TM)," featuring "Heavy Gear II." Additionally, Global VR's recent acquisition of Interactive Light has expanded its product line, giving it such sports simulation market hits as "Home Run Derby," and "Kick It," which has sold over 2,800 units worldwide since its introduction.
Global VR's games are currently located in such world-class locations as Jillian's, Dave and Buster's, SEGA GameWorks, Cyberstation, Caesar's Palace, Sea World, and the Six Flags parks. Its "Home Run Derby" has been in Major League Baseball stadiums for several years. GVR currently has a total of five new products slated for release in 2001.
L. Kelly Jones, GameCom's chief executive officer, stated, "This acquisition will catapult GameCom to a new level. We believe that Global VR and the VR Vortek(TM) are recognized innovative leaders in the arcade industry. This expansion, and our complementary products, allows GameCom to compete in two high-growth markets within the $40 billion per year computer gaming industry. We expect a seamless and timely integration."
With over 50 combined years in the arcade and amusement industry, Global VR's management brings depth and talent to GameCom. Under the arrangement, Milind Bharvirkar, currently president of Global VR, will assume the responsibilities of chief executive officer of the new, combined company, while L. Kelly Jones, currently GameCom's chief executive officer, will continue in his role as chairman of the board of directors.
Global VR recently entered into an exclusive distribution agreement with Virtual Distribution, Inc ("VDI") to represent Global's VR Vortek(TM) line of virtual reality arcade games. The exclusive agreement calls for VDI to purchase a minimum of 500 VR Vortek(TM)s over an 18-month period, representing in excess of $5,000,000 in sales. Global VR has already received purchase orders under the agreement with VDI for 100 units.
Milind Bharvirkar, Global VR's president, stated, "We are delighted to bring Global VR's proven products, management team, and revenue potential to GameCom. This acquisition should provide the combined company access to new capital markets to sustain manufacturing capabilities for the recent increase and demand for both Global VR's new products as well as GameCom's `Net GameLink(TM). One of our goals is to move to an established exchange as soon as practical, and this transaction represents a significant step in moving GameCom toward satisfying certain required criteria for these exchanges."
After the acquisition, GameCom will have combined manufacturing capabilities and collective strategic alliances with Activision, Computer Associates, Intel, Ritual Entertainment, Fastrak, and AMD. Agreements regarding additional alliances are pending.
GameCom, www.GameComInc.com, based in Arlington, Texas, designs, manufactures, and assembles `Net GameLink(TM), an interactive Internet gaming concept utilizing network-enabled gaming kiosks. GameCom recently completed the `Net GameLink(TM) system, and is now engaged in the sales and marketing of this innovative concept.
This press release contains certain forward-looking statements. Forward-looking statements are generally preceded by the words such as "plans", "expects", "believes", "anticipates", or "intends". Investors are cautioned that all forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from current expectations. GameCom urges investors to review in detail the risks and uncertainties contained within its filings with the Securities and Exchange Commission.
L. Kelly Jones, 817/261-GAMZ (CEO)
Bob Cooney, 877/665-3880 (VP, Business Development)
DeMonte Associates for GameCom (Investor Relations)
Cynthia DeMonte/Gail Johnson, 212/473-3700
BW2252 JAN 10,2001