Boss Media and EssNet to develop own offerings in VLT market

The partnership regarding the development and sale of VLT systems to lottery operators via the jointly owned company EssNet Interactive AB is being terminated. The convergence currently taking place in different parts of the gaming market makes it increasingly difficult for the parties not to have full control themselves over such an important part of the product offering.

EssNet Interactive was established in the summer of 2003 as a joint venture between EssNet, Boss Media and Australia’s Tattersall’s. The results have been extremely good, in part in the form of significant orders from the Norwegian state-owned gaming operator Norsk Tipping, as well as two additional projects, one in the Czech Republic (Synot Lotto) and one in Åland, Finland (PAF). The most important components in Boss Media’s withdrawal from EssNet Interactive consist of the following:  EssNet is purchasing Boss Media’s 35-percent share in EssNet Interactive AB for an initial sum of SEK 25 million plus an additional purchase price linked to the financial outcome of the Norsk Tipping order.  Boss Media is purchasing the version of the VLT system that is being delivered to Synot Lotto and other customers for a cash payment of SEK 40 million.  Boss Media will pursue the customer relationship with Synot Lotto as its own business.  Boss Media and EssNet are entering a strategic partnership agreement regarding delivery of games and hardware to each company’s customers. More information regarding the financial effects for Boss Media will be provided in the interim report for the second quarter of 2005, which will be published on August 12. For further information, please contact: Peter Bertilsson, President and CEO, Boss Media AB (publ), telephone: +46 (0)470 70 30 01 or +46 (0)70 993 25 54, e-mail: peter.bertilsson@bossmedia.se Hans Vigmostad, President and CEO, EssNet AB, telephone: +46 (0)8 702 57 00 or +46 (0)70 812 84 50, e-mail: hans.vigmostad@essnet.se