Transaction Offers Multi-Site Cross-Marketing and Co-Branding Opportunities; Creates Strong Platform for Proposed Online Lottery Ticket Sales. Company Will Assume a New Name and Leverage Its Popularity To Build a Family of Websites, Products and Services
MARINA DEL REY, Calif., Jan. 16 /PRNewswire/ -- Bingo.com, Inc.
(OTC Bulletin Board: BIGR) a fast-growing entertainment site and game
application service provider (ASP), today announced that it intends to change
its name as part of the company's revised focus to build and acquire a number
of websites, products and services that will appeal to its established yet
expanding clientele. As previously announced, a first step in this plan is
the proposed merger with Lottery.com (The Lottery Channel).
The new company, whose name will be determined in the first quarter of
2001, will include Bingo.com, Lottery.com, DollarBill.com, WaveGames.com,
GameLand.com and all products, services and websites developed or acquired in
the future that appeal to the company's consistent and established group of
demographics.
In a letter to shareholders, Shane Murphy, Bingo.com's chairman and CEO,
said, "Our anticipated merger with Lottery.com is the first step in our
revised plan to become a brand management company. This merger gives us
additional opportunities for cross marketing and co-branding of our current
websites, a chance to participate in Lottery.com's proposed expansion into
online lottery ticket sales, and greatly enhance the company's cash position
following the closing of the deal."
Murphy added, "We have established a popular brand in Bingo.com. Now it
is time to direct this ever-increasing traffic flow to an expanding line of
products, services and sites, including e-commerce based websites.
Ultimately, we will build a family of popular material from which to draw
advertising, licensing and e-commerce revenues."
Bingo.com, which has been listed at or near the top of "stickiest site on
the web" ratings by such data ratings services as Media Metrix and Nielsen's
Net Ratings, announced on December 18, 2000, that it has signed a letter of
intent to merge with Lottery.com. While specific terms and timing of the
merger were not released, the companies today said they expect the merger to
close during the first quarter of 2001.
Mr. Murphy and Mr. Roger Ach, chairman and CEO of Lottery.com, will hold a
conference call at 10:00 a.m. (PST), 1:00 p.m. (EST) on January 18, 2001, to
discuss the forthcoming marketing strategy and cross marketing plans. The
conference call schedule is as follows:
U.S./Canada Number: (800) 568-7781
International: (706) 634-1118
Conference ID: 722165
In addition a replay will be available two hours after the completion of
the conference call through January 25, 2001. U.S./Canada replay number is
(800) 642-1687 and International participants, call (706) 645-9291.
The text of Mr. Murphy's letter to Bingo.com shareholders follows:
Dear Shareholder:
As Bingo.com looks forward to its third year of operation, I would like to
discuss the current state of our business environment, some of our recent
accomplishments, and goals for the future.
At the inception of Bingo.com in January of 1999, it seemed just about any
Internet based company could get serious attention from investors before
showing any true value. Well, in today's market that idea no longer
holds. An Internet company now needs to show not only incessant progress
and growth but that it can and will be profitable.
Turning a profit on the Internet requires that a company distinguish
itself from the rest of the pack; show steady growth; provide investors
with reasons to buy and hold the stock; and secure long-term shareholder
value. While Bingo.com has been met with the same difficulties as the
rest of the online world, we have also been able to demonstrate that our
ideas and technology have value and the ability to attract users. For
example:
-- Bingo.com's anticipated merger with Lottery.com gives the Company
additional opportunities for cross marketing and co-branding of our
current Websites, a chance to participate in Lottery.com's proposed
expansion into online lottery ticket sales, and a higher cash
position.
-- Bingo.com has been rated one of the "stickiest" if not the "stickiest
site on the web" numerous times by some of the most reputable data
ratings services such as Media Metrix and Nielsen's Net Ratings.
-- Our latest third quarter revenues showed a 945% sequential increase.
-- A steady increase in our website traffic and registered users.
-- Bingo.com was voted number one Bingo site by Reader's Choice Polls.
Given the current state of the Internet sector, I am very happy that we
were able to accomplish what we did in 2000. Understanding the importance
of profitability, our conviction remains that Bingo.com has what it takes
to become profitable in 2001 -- great products, proven results, an
outstanding, well-seasoned team, and loyal followers.
Now, to concentrate on the future of the company.
It is our intention by the end of the first quarter of 2001 to change the
company name as part of the company's revised focus.
There is no doubt that we have established a popular brand in Bingo.com.
It is time to direct our ever increasing and established demographic to a
new line of products, services and sites, including e-commerce based
websites. By directing our substantial pool of followers to this vast
line of materials we will have a whole family of popular resources from
which to draw advertising, licensing and e-commerce revenues. A key
example of this revised strategy is our proposed merger with Lottery.com.
Along with a plan to sell lottery tickets online, the company currently
hosts popular websites such as Lottery.com, GameLand.com, WaveGames.com
and DollarBill.com, all of which fit nicely into our plan of introducing
new materials that appeal to our clientele. The combining of our
companies will allow us to achieve this new direction much more rapidly,
as we coordinate our technologies, ad sales, finance, marketing, etc.,
thereby squeezing out costs and improving productivity. Further, our
companies have very similar demographics that greatly enhance our rate of
increasing registered memberships.
To our investors and prospective investors, we appreciate your confidence.
We expect 2001 to be a year that moves us closer to reaching our full
potential as a company. I assure you that we will continue to work hard
and stay committed to the solid business model that is designed to bring
you a satisfying return on your investment.