FRE Freeplay

RNS Number:3921P
Gameplay.com PLC
14 August 2000



        STATEMENT FROM DIXONS GROUP PLC AND GAMEPLAY.COM PLC
                                  
        GAMEPLAY ENTERS PARTNERSHIP WITH DIXONS AND FREESERVE
                                  
Dixons Group plc ("Dixons"), the UK's leading consumer electronics
retailer, and gameplay.com plc ("gameplay"), a leading European e-
commerce and online gaming company, today announce a wide-ranging
strategic partnership to exploit the emerging opportunities in the
video and computer games market as it evolves towards online
distribution.  The principal areas of cooperation include the
following:
*    The combination of Dixons' @jakarta clicks-and-mortar
     specialist games retailing business with gameplay's expertise
     in games e-commerce and online gaming via new channels
     including the web, broadband, IDTV and mobile phones.
*    A management services agreement under which @jakarta's retail
     stores will be rebranded gameplay, but will continue to be
     operated by Dixons.   It is intended that further stores will
     be added to the existing seven outlets.
*    Economies of scale achieved through consolidation of the UK
     buying operations of both companies.
*    In addition, gameplay has entered into a four-year agreement
     with Freeserve plc ("Freeserve"), the UK's leading internet
     portal, under which gameplay will exclusively operate
     Freeserve's games channel.  Details of the agreement between
     gameplay and Freeserve are contained in a separate
     announcement.
*    As part of this agreement, Dixons will distribute discs and
     seek to pre-load on PCs a Freeserve co-branded version of
     gameplay's online gaming software.
  
The terms of the partnership between Dixons and gameplay are as
follows:
*    Gameplay will issue to Dixons 6.8 million new gameplay Ordinary
     Shares with a value of # 14.7 million, based on the average
     price for a gameplay share for the last three trading days as
     derived from the London Stock Exchange Daily Official List
     (#2.17 per share). In addition, Dixons will subscribe #5
     million for a further 1.8 million new gameplay Ordinary Shares
     at a price of #2.71  per share. Following these transactions
     Dixons will hold 8.6 million gameplay Ordinary Shares,
     representing approximately 12.5 percent of the enlarged share
     capital of gameplay.
*    The stores will be owned and operated though a new company,
     jointly owned, by which gameplay outsources the operation of
     the retail stores to Dixons.
*    Subject to certain performance targets being met by the
     business, Dixons will be entitled to a further consideration of
     up to 4.4 million shares.  These targets include the sign up of
     online customers via the stores and the profitability of the
     stores.
*    Gameplay has also granted Dixons an option to subscribe for a
     further 4.4 million Ordinary Shares at a price of #3.50 at any
     time within 18 months from completion.
*    In the event that Dixons meets all of its performance targets,
     and exercises its options to acquire 4.4 million shares, its
     potential maximum interest would represent approximately 22.5%
     of the enlarged share capital of gameplay.
*    In addition, Dixons has agreed to invest at gameplay's option,
     a maximum of # 7 million over the term of the agreement by way
     of subscription for new gameplay Ordinary Shares at # 2.17 per
     share specifically to fund the expansion of gameplay stores.
*    Dixons has the right to appoint a director to the board of
     gameplay.  Ian Livingston, Group Finance Director of Dixons and
     a non-executive director of Freeserve plc, will join the board
     of gameplay as a non-executive director.
*    The agreement is conditional on gameplay obtaining
     shareholders' approval for the issuance of new shares.

Mark Bernstein, Chief Executive of gameplay, commented:

"This is a significant strategic step for both companies and this
relationship with Dixons allows us to take advantage of their
unparalleled retail expertise to incorporate retail outlets into our
successful multi-channel approach to dealing with customers.

"Today, most games are sold in boxes on the high street and the
addition of a focused UK high street presence and the partnership
with Dixons, will help us to develop stronger relationships with
games publishers and developers. We see this as important for the
business whilst the industry consolidates and migrates towards
online distribution of games software - an area in which we are
building a strong European position on the web, on broadband, IDTV
and in wireless both in terms of games sales and games playing.

"This relationship will help establish gameplay as the leading
online games specialist in Europe."

Dixons Group Chief Executive, John Clare, said:

"We have been greatly impressed by gameplay's management and
technology.  They have established Europe's leading online gaming
brand.  I am pleased that we are able to bring together our
considerable retail and sourcing skills with their online experience
in the games market to develop further the clicks and mortar
approach adopted by @jakarta under the gameplay brand.  We are keen
to be able to share in the future growth of this business across
Europe."

gameplay
Gameplay is one of Europe's leading e-commerce and online gaming
companies, offering a pan-European, multi-platform games destination
and community.  Gameplay allows customers to buy games, talk about
games or play games on a number of platforms, including online
(web/Broadband), IDTV and WAP. The Group, founded in March 1999, has
raised #93 million (including #31 million at IPO), has over 400
employees and 900,000 customers throughout Europe.  BT and BSkyB are
significant shareholders.

gameplay trading
Gameplay intends to report its results for the 12 months ended on 31
July 2000 during September.  The Group expects to report strong
growth in total revenues.  This positive revenue performance is a
clear indication that the recent investment in new technological
development, acquisitions and organic growth is helping to establish
gameplay's European market position.  Operating costs are expected
to have increased reflecting this accelerated rate of growth, and
investment in new territories in which the Group has yet to start
trading and in new technological areas such as Broadband and IDTV
across Europe.

@jakarta
@jakarta has seven retail outlets, located in high traffic regional
shopping centres including Bluewater in Kent and Thurrock Lakeside.
Through its aktive customer loyalty scheme, @jakarta has built up a
database of over 60,000 customers. In the year ended 29 April 2000
its retail sales were #6.5 million with retail losses of #2.6
million after central costs.  As at 29 April 2000 the value of net
assets being transferred were # 3.2 million.

Gameplay shareholder approval is needed for the issues of shares
under this agreement and an Extraordinary General Meeting of
gameplay is being convened for 12 September 2000 to permit the issue
of gameplay shares. The board of gameplay considers the acquisition
of @jakarta and the terms of the agreement to be in the best
interests of the Group and its Shareholders as a whole. The
Directors have undertaken to vote in favour of the Resolutions in
respect of their own holdings.
                                  
                               
Enquiries

Gameplay.com                                 020 7959 8500
Mark Bernstein, Chief Executive

Citigate Dewe Rogerson                       020 7638 9571
Simon Rigby
Freida Davidson
Kylie Child

Dixons Group plc
Nick Wood, @jakarta                          01442 353000
Hamish Thompson, Head of Press & PR          01442 353195

Square Mile Communications Ltd.              020 7601 1000
Tim Jackaman


Notes to editors :

About Dixons Group plc
Dixons Group plc is Europe's largest specialist retailer of consumer
electronics. It has more than 1,150 stores across the UK, the
Republic of Ireland, the Nordic region and the Iberian Peninsula. It
trades through Dixons, Currys, PC World, The Link and @jakarta in
the UK and Eire, Elkjop, in the Nordic region and Ei System in Spain
and Portugal. It specialises in the sale of high technology consumer
electronics, personal computers, domestic appliances, photographic
equipment, communication products and related financial and after
sales services.

@jakarta launched its first store in November 1998 offering PC and
games console software.
Customers can buy on line from the @jakarta interactive website
which features information on software and games, news, reviews and
tips and offers more than 1200 software related products.  @jakarta
has seven stores across the UK - Bluewater, Lakeside, Reading,
Bristol, Brighton, Leeds and Glasgow.

About gameplay

Gameplay is one of Europe's leading e-commerce and online gaming
companies, offering a pan-European, multi-platform games destination
and community.  Gameplay allows customers to buy games, talk about
games or play games on a number of platforms, including online
(web/broadband), IDTV and WAP. The Group, founded in March 1999, has
raised #93 million (including #31 million at IPO), has over 400
employees and 900,000 customers throughout Europe.  BT and BSkyB are
significant shareholders.  Since last August, the Group has
undertaken further expansion into Europe, most recently with
significant strategic acquisitions in Scandinavia (Nordic Games) and
Germany (Joysoft, Dyantex, Theo Kranz, GXP and Neo).


Gameplay offers a pan-European, multi-platform games destination and
community, allowing   customers to buy games, talk about games or
play games across four channels:

Direct    gameplay direct          mail order and e-commerce
Online    gameplay.com             online community incorporating
                                   Wireplay - Europe's largest dial-up gaming 
                                   network
IDTV Interactive digital TV        games shopping, news and reviews
                                   and gaming channels
WAP  gameplay mobile               Wireless Internet services accessible
                                   via WAP phones


In July this year, gameplay.com was awarded the 'Site of the Year'
and 'Best Youth Site' at the Yell UK Web Awards.

gameplay can be found at                http://www.gameplay.com
The corporate website can be found at
http://corporate.gameplay.com

gameplay has also set up a dedicated web microsite at
http://www.gameplay.com/mobile where Internet users can find out
more about gameplay's WAP service and how to access gameplay mobile.

Freeplay Energy (LSE:FRE)
Historical Stock Chart
Von Jun 2024 bis Jul 2024

Freeplay Energy (LSE:FRE)
Historical Stock Chart
Von Jul 2023 bis Jul 2024