ISWI Makes Announcement.
WEST PATERSON, N.J.--(BUSINESS WIRE)--April 17, 2002
Interactive Systems Worldwide Inc. (NASDAQ SmallCap: ISWI) revealed that in a press release issued on April 12, 2002, ISWI inadvertently indicated that KirchSport held a controlling interest in Global Interactive Gaming Ltd ("GIG"), ISWI's exclusive licensee, and that KirchSport had not filed for insolvency protection in Germany.
In fact, the controlling interest in GIG is held by Prisma iVentures, which is owned by KirchMedia. KirchMedia has filed for insolvency protection in Germany.
ISWI and GIG are continuing to discuss possible transactions related to the future relationship between ISWI and GIG in the event that The Kirch Group does not fulfill its commitment to continue funding GIG through the year 2002. The use of the money in the Escrow Account set up under the License Agreement with GIG, together with existing resources, could be used to continue the combined operations of GIG and ISWI. Early resolution of this matter is expected. No assurance can be given that any transaction between ISWI and GIG will be consummated.
SportXction(TM) is a patented, real-time, software system, which allows a player to make play-by-play wagers on a sporting event while the event is in progress. Wagering may be conducted while viewing a television broadcast of a sporting event. The wagers offered are mostly oriented to short-term plays, for example, is the next play a run or a pass, is the next pitch a ball or a strike, does the shooter make two foul shots, and many more, including parlays, in most sports. The wagers have odds associated with them, which relate to the probable outcome of the proposition being wagered upon, and the odds are adjusted in real time by proprietary artificial intelligence software to reflect player sentiment, as derived from the betting patterns. The system also supports traditional, pre-game sports wagers.
This press release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 including, but not limited to, whether The Kirch Group will fulfill its commitments to continue to fund GIG; whether GIG will continue to have the funds to pay the minimum license fees under the GIG License Agreements; what the consequences of the failure of The Kirch Group to continue to fund GIG could be to ISWI; whether commercial use of the SportXction(TM) System by GIG will begin in 2002; whether ISWI and GIG will come to an agreement to permit continued operations of both companies and if so, the length of time that the cash resources will last. Investors are cautioned that these statements involve risks and uncertainties. Additional risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission, including its Form 10-KSB for the year ended September 30, 2001.