Aristocrat Leisure, EssNet Sign Deal

10 April 2006

SYDNEY, Australia – (PRESS RELEASE) -- Aristocrat Leisure Limited (ALL: ASX) announces a move into the fast growing interactive, server-based video lottery market with the execution of a Share Purchase Agreement for the acquisition of all of the issued capital of Scandinavian high technology gaming company, EssNet Interactive AB ("Interactive") for approximately A$70 million.

The Share Purchase Agreement is subject to a number of procedural conditions subsequent and is expected to be completed in May 2006.

Interactive develops, manufactures and markets next generation interactive system and video terminal hardware and software, utilising a leading-edge system offering, based on PC technology in a client-server architecture.

The highly scalable Interactive solution has an open system architecture that allows any content provider to port games onto its interactive video terminal platform.

This acquisition will allow Aristocrat to exploit the growing global market for server based video lottery product offerings. Another major benefit will be the use of the video lottery technology to accelerate development of in-casino and cross-casino server-based content delivery within traditional markets, which is expected to be a major growth sector in world gaming markets over the next 10 years.

Mr Paul Oneile, Aristocrat Chief Executive Officer and Managing Director said, "This is a key strategic opportunity for us to enter a segment of the global gaming market in which we do not currently compete. We anticipate that the demand for this type of product offering will grow significantly in future years in many jurisdictions, especially in Europe and Asia."

"The Interactive technology is world class and will also be of significant value to Aristocrat in our existing core markets as we continue to invest heavily in the development of our server-based gaming product offering," he added.

Following a global competitive evaluation, Interactive was awarded a contract by Norsk Tipping, the Norwegian lottery, in November 2003 for the supply of an interactive video lottery system and around 10,000 terminals.

The roll-out of this opportunity, pending resolution of a legal challenge in the European Courts, is expected to re-commence in early 2007. Mr Reidar Nordby, President of Norsk Tipping, said, "The Interactive system has been formally accepted by Norsk Tipping. In my view, the system is the most technologically advanced VLT system today."

Aristocrat has also entered into a Strategic Alliance Agreement with Tattersall's Limited ("Tattersall's"). This Strategic Alliance Agreement with Tattersall's represents a further step in the development of the strong relationship between two substantial Australian gaming companies, which operate in different parts of the industry value chain.

It will also enable Aristocrat to further develop and utilise Interactive's gaming system technology, the development of which included the active involvement of Tattersall's.

Aristocrat intends to commit significant research and development resources to ensure the optimisation of Interactive's potential. This is effectively a start-up operation and the financial performance of Interactive will be dependent on the speed of the roll-out of its products.

The earnings impact on Aristocrat in 2006 will be dilutive by approximately 1.5 - 2.0 cents per share, broadly neutral in 2007, but is expected to be accretive thereafter. This earnings impact is after an estimated charge of A$6 - A$7 million per annum, as a result of the amortisation of the value of intellectual property and other intangibles acquired.


Related Links
Aristocrat Leisure Gaming Vendor Information
Aristocrat Technologies, Inc. Gaming Vendor Information

Featured Vendors
Kallop
Sunkist Graphics, Inc.
Kallop
Reward every play like a VIP with exclusive luxury brands at affordable prices.
Sunkist Graphics, Inc.
Specializing in the creation of best-of-breed gaming graphics - slot glass, sign faces, and more
AmericanChecked
Indian Gaming Tradeshow & Convention
AmericanChecked
Background checks for the gaming industry with key & non-key packages & fingerprinting solutions
Indian Gaming Tradeshow & Convention
The largest gathering of tribal leaders and casino executives in the United States
Casino Schedule Ease
Oklahoma Indian Gaming Association (OIGA) Conference
Casino Schedule Ease
Full Featured & customizable for the complex scheduling needs of table games & other casino depts
Oklahoma Indian Gaming Association (OIGA) Conference
The biggest little show in Indian gaming! Save the date: August 12-14, 2024 Oklahoma City
Top One Tech Limited
Goldfinger Monitors
Top One Tech Limited
GLOBAL TOUCH SOLUTION PARTNER OF CHOICE,10+ years OEM manufacturing,100+ thousand units application
Goldfinger Monitors
Innovative touch-screen solutions - vibrant lighting, high-def imagery, bright, bold colors
Casino City Press
Casino Network
Casino City Press
A leading publisher and distributor of casino and gaming business data and market research reports.
Casino Network
20+ years experience selling refurbished slot machines, parts & glass for all major brands
Betson Imperial Parts & Service
OCR - Online Casino Reports
Betson Imperial Parts & Service
Your one stop shop for all your gaming and OEM needs!
OCR - Online Casino Reports
Delivers highly targeted casino traffic from over 70 countries! Get your casino listed today at OCR!
Slot Machines Unlimited
Casino Trac - Table Trac, Inc.
Slot Machines Unlimited
Exporter of IGT, Williams, AVP, Trimline, Aristocrat, Konami, Bally, & parts over 20 yrs experience
Casino Trac - Table Trac, Inc.
CasinoTrac™ is a full CMS platform, operating in 225 locations, across 13 countries, since 1995.
House Tech Ads
Regulatory Management Counselors, PC
House Tech Ads
Drive quality casino-gambling traffic to your brand from over 70 countries from our premium assets!
Regulatory Management Counselors, PC
Over 45 years of experience serving the legal and regulatory needs of casino industry clients
GamblersPick
Dable Advisory & Consulting Services
GamblersPick
Share & Read other players' reviews! A top player community-driven portal for online casinos.
Dable Advisory & Consulting Services
Advisory & consulting services services for Indigenous entrepreneurs, businesses & organizations
TribalHub
TribalHub
25th Annual TribalNet Conference Sept 16-19, 2024 Westgate Las Vegas


Your Guide to 14,890 Gaming Industry Suppliers