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 TOPEKA, Kan., April 19 /PRNewswire/ -- TV Bingo Network, Inc., (OTC: TVBO) announced today that it has exercised its previously announced option, as extended by Gamma International, Ltd. (NASDAQ: GAMM), to provide the services required in conducting all of Gamma's bingo gaming activities. In consideration of those services, TV Bingo will initially receive a services fee equal to 95% of net cash generated by Gamma's MegaBingo(R) operation. In each of the past two years, gross annual gaming revenues from these bingo activities, as reported by Gamma, have exceeded $16 million.
 Gamma's MegaBingo system consists of a nationwide network of approximately 54 independently owned and operated Indian tribal halls and charity halls across 15 states under exclusive contract to Gamma. Gamma broadcasts two nightly high-stakes integrated bingo games, and three games on Saturday, offering prizes as high as $1 million through a television satellite network. The network, which TV Bingo believes to be the largest of its kind on Indian reservations, has been operating daily, without interruption, since 1989.
 Prior to exercise, the Option and its related arrangements were amended to postpone closing of an associated asset purchase agreement covering substantially all of the assets utilized by Gamma in its bingo gaming activities, which under the amended services agreement will be committed to use by TV Bingo in its performance of such services. The amended purchase agreement further specifies the related assets and liabilities to be assumed by TV Bingo at closing.
 Closing under the purchase agreement will occur within 15 days after the satisfaction or waiver of all conditions to closing, including the delivery by Gamma to TV Bingo of SEC required financial statements relating to Gamma's bingo gaming activities. The amended purchase agreement also provides for a period of 60 days during which TV Bingo will confirm its financial arrangements for closing, in the absence of which, or in the event TV Bingo does not complete its obligations to close under the purchase agreement, Gamma will have the right to terminate the services agreement and be refunded 45% of the services fees previously paid under the agreement.
 The purchase price for the assets will be $1,735,000 plus the liabilities assumed. Of such amount, $882,500 will be paid at closing (together with interest of a portion thereof accrued prior to closing), and the remainder of $882,500 will be paid in April 1995, together with interest accrued at the rate of 8% per annum, subject to earlier installments thereof equal to 45% of net cash generated by the business acquired commencing six months after closing. The agreement provides that the cash assets acquired will exceed liabilities assumed by approximately $444,000. TV Bingo will also be entitled, upon closing under the purchase agreement, to additional fees in the amount of $174,000 for services rendered prior to exercise of the Option. In December 1993, TV Bingo paid $100,000 in exchange for the Option.
 TV Bingo Network, Inc., which was established in 1991 and completed its initial public offering in July 1993, has been organized to participate in the rapidly expanding gaming industry and, utilizing computer technology, is devoted to the development of interactive bingo games, the results of which are intended to be televised for home-viewer participation.
 -0- 4/19/94
 /CONTACT: Larry Montgomery of TV Bingo Network, 800-593-3232, or 913-256-6560; or Alex Tassos of Alex Tassos & Associates, 619-748-0787, for TV Bingo Network/

CO: TV Bingo Network, Inc.; Gamma International Ltd. ST: Kansas IN: CNO ENT SU:

TO -- DE018 -- 8149 04/19/94 12:12 EDT
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Publication:PR Newswire
Date:Apr 19, 1994

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