| Tue 27 Feb 2001, 0:00 | | National Sporting Index Announcement |
|
NATIONAL SPORTING INDEX
(Registration number 1998/020418/06)
ANNOUNCEMENT ON THE FORMATION OF A GAMING TECHNOLOGY JOINT VENTURE TO PROVIDE
TURNKEY SOLUTIONS AND SUPPORT INFRASTRUCTURE FOR OPERATORS OF INTERACTIVE
GAMING BUSINESSES
Introduction
Shareholders are advised that National Sporting Index has reached an agreement
in principle to form a joint venture company that will focus on providing
consulting services, technology solutions and a dedicated gaming support
infrastructure for potential participants in the interactive gaming industry.
Rationale
The global gaming industry has during the past three years undergone
significant operational changes in line with developing technologies that have
transformed the manner in which gaming businesses interface with their clients.
The advent of the Internet, Internet enabled phones, automated voice systems
interactive television and an array of mobile devices has provided operators
with multiple delivery platforms increasing the reach to a global and mobile
target market.
Together with the new network era's emphasis on bandwidth, critical mass,
system interoperability, direct customer connections, electronic commerce, the
development of virtual communities will provide the underpinnings for an
electronic gaming industry that will look substantially different from its
land-based predecessor.
As a direct result of an array of common interests between the three
participating companies it was decided to create a joint venture initiative
that will focus entirely on certain opportunities that currently exist in
interactive gaming.
Operational overview
The South African subsidiary will provide specialised consulting, project
management, product development, web design, marketing and e-commerce
applications.
Furthermore this business will establish support infrastructure focused
entirely on the gaming industry that will include a call centre offering
web-based, Intelligent Voice and telephony support, and a back office and
administration centre that will manage payment and transaction processing.
The local support infrastructure will target offshore gaming businesses, and,
be positioned to service South African based Internet gaming businesses should
the National Gambling Board decide to regulate electronic gaming.
The offshore subsidiary will provide group clients with a hosting and technical
infrastructure that will comprise of a co-location server facility, access to
bandwidth, server monitoring and support staff.
A detailed announcement regarding the offshore operation will be made in due
course.
Structure
The joint venture comprises a collaboration of three individual businesses that
have been jointly responsible for the early-stage development of the project.
They are NSI, Enhance Technologies (Pty) Ltd and tranXactive Holdings Limited.
* NSI is South Africa's leading corporate bookmaker
* Enhance Technologies is a company that focuses on New Economy start-ups,
providing strategic counseling, management consulting and technology
partnerships.
tranXactive is a specialised software development company, focusing on the next
major platforms in computing - Microsoft .NET, the Mobile Internet and
Intelligent Voice Systems. This specialisation is in delivering world-class
Internet, mobile and voice-based business solutions and technologies based
primarily on a Microsoft foundation and incorporating the latest Microsoft .NET
technologies.
TranXactive combines a range of design, development and implementation skills
in these high-growth areas to set the platform for convergence on the
next-generation network.
Capital Structures
Pursuant to reaching finality on certain capital raising issues NSI will hold
approximately 25% in Innovate Group Limited UK.
Management
An industry board, with representation from NSI, Enhance and tranXactive, will
govern the joint venture. The board will be responsible for the strategic
vision, policy formulation and corporate governance of the joint venture.
An operational management team has been identified and will conduct the
day-to-day management of the business.
Financial Effects
The joint venture is expected to be profitable during the companies first year
of trading. As the joint venture develops earnings contributions should become
significant. The company will generate a large percentage of its revenue in US
dollars.
Conditions Precedent
The implementation of the joint venture is subject to the fulfillment of the
following conditions precedent:
* Conclusion of the joint venture and service level agreements;
* Approval of the boards of directors of NSI, Enhance Group Holdings Limited
and tranXactive Holdings Limited on the final terms of the joint venture and
service level agreements; and
* Approval from such regulatory authorities as may be required.
Johannesburg
February 2001
