Aspinalls and Golden Palace - READ THIS!!!
Posted by: Webmaster (---.se.client2.attbi.com)
Date: April 2, 2002 10:42AM

I never thought this would take place today! I expected this stuff to happen 3-5 years from now!!

Webmaster
StartCasino

Aspinalls Online to outsource casino operations to Golden Palace

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LONDON (AFX) - Aspinalls Online PLC said its wholly owned subsidiary, Aspinalls Online Ltd, has today signed a Memorandum of Understanding ("MOU") with Golden Palace Ltd under which it plans to outsource the management of the company's online casino operations, in exchange for a revenue share agreement in respect of all players accessing the Aspinalls.com casino website.

Aspinalls said it has incurred substantial losses in establishing and operating its own on-line gaming business. It is with a view to securing future value in its investment in on-line gaming that the directors have entered into the MOU.

The outsourcing arrangement follows the announcement by the company on Jan 25 that the board was conducting a review of the group's financing and strategic options.

The formal agreements, which are expected to be signed on Friday, are expected to run for an initial period of 30 months and will grant Golden Palace the exclusive right, under license, to promote the Aspinalls name within the online gaming environment.

Golden Palace is licensed in Antigua and the Mohawk Territory of Kahnawake in Canada.

Aspinalls said the agreement with Golden Palace will enable the company to eliminate the operating overheads previously borne by its subsidiaries and thereby provide a future income stream for the company without risk to its own cash flow.

On completion of the formal agreements and full transfer of the operation of the websites to Golden Palace, the company will wind down its existing on-line business. This action will reduce the cash available to the company to approximately 600,000 stg, but the anticipated release by the company's operating subsidiaries of gaming deposits and reserves should increase available cash to approximately 1 mln stg over the next few months, it said.

The company said its results for the year ended Dec 31 2001 will include a full statement of the anticipated closure and redundancy costs associated with this transaction. The company's results will also reflect a full write down of its investment in Gaming Ventures International Ltd, which the directors believe to have negligible value.

slm/


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