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Frogster Interactive Pictures AG purchases the remaining stakes in Frogster Online Gaming GmbH / Significant revenue growth from key product expected in March
Frogster Interactive Pictures AG / Acquisition/Change in Forecast 23.03.2010 07:30 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Berlin, 23.03.2010: Frogster Interactive Pictures AG, international publisher of massively multiplayer online games with headquarters in Berlin and subsidiaries in Berlin, San Francisco and Seoul raises its stake in Berlin-based Frogster Online Gaming GmbH from 90 to 100 percent. Within the Frogster group's geographically segmented holding structure, Frogster Online Gaming GmbH is the subsidiary in charge of the operative European business. Frogster Online Gaming runs the massively multiplayer online games 'Bounty Bay Online' and 'Runes of Magic' in Europe. Revenues with both 'Bounty Bay Online' and 'Runes of Magic' are growing strongly. Besides this, with OnlineWelten.com, Frogster Online Gaming runs one of the broadest reaching German MMO games and community portals. The management of Frogster believes the stake in Frogster Online Gaming does not only have a higher value than the purchase cost on the balance sheet, but also expects further value enhancement especially facing the exploitation of the success title ,Runes of Magic' still being in its initial stage and facing the expansion of the user base. In 2009, Frogster Online Gaming has reached a seven digit profit and expects a significant profit increase for 2010. Capital raise by 100,000 shares against investment in kind Frogster acquires the shares from the founders and managers of Frogster Online Gaming (FOG), against issuance of 100,000 Frogster shares that shall be created by a capital increase from authorized capital stock against an investment in kind. Thus the increase of the stake in FOG by 10 percent stands against a dilution effect of the parent company's shareholders of only 3.8 percent. As long as FOG contributes more than a third to the group result, the earnings per share net of taxes and minority stakeholder interests rise with the transaction. For 2010, the management expects a result contribution of over 50 percent. Increase of the 'Guidance' 2010 Consequently, the Frogster management raises their target for the 2010 profit net of taxes and minority stakeholder interests from 1.50 to 1.60 Euro per share. A so called 'lock-up' was agreed for the new shares. Game Developers Conference in San Francisco At this year's Game Developers Conference (GDC) from March 9th until March 13th 2010 in San Francisco, at which Frogster was present with an own booth, the company not only received a lot of attention for the MMO game 'Runes of Magic' but also had several appointments with developers about the licensing of interesting future MMO game titles. At the GDC two years ago, Frogster had succeeded in the initiation of the business towards the purchase of the 'Runes of Magic' license. Due to the success with 'Runes of Magic' on three continents, Frogster has gained a high reputation of a global MMO game publisher. The first social game of Frogster which was presented at the GDC, 'Runes of Magic - The Challenge', has received a very positive feedback. Worldwide, 'Runes of Magic' is the first massively multiplayer online game (MMO game) which is expanding into the world of the strongly growing 'social communities' in such a manner and with this, into a genre which attracts mass audiences. 'RoM-TC' is a so-called online trading card game in which the players can purchase card decks, collect and trade cards and compete with them against each other. Some cards also have functions, meaning values in the 'associated' MMO game. Many trading card games achieve high revenues, even more so when connected to Facebook as planned here. Additionally, with 'RoM-TC' Frogster wants to gain a cross promotion effect with the main product 'Runes of Magic'. Current revenue development For March 2010, a new, significant revenue growth is indicated for the main revenue source 'Runes of Magic', especially in North America. The management expects a new month record for the ongoing revenues from the virtual world. Moving forward, Frogster expects further increases of revenues from the roll-out into the Polish language version which was just launched, from additional game content, amongst others the siege battles between players' castles which have been announced, and especially from the third chapter 'Runes of Magic - The Elder Kingdoms' which has been announced for May 2010, from additional large-scale marketing campaigns, especially in the USA and Korea and from improvements in functions such as the already announced enabling of impulse purchases within the game and the reduction of the data volume of the initial game download with a 'slim client'. Frogster Interactive Pictures AG, Tel. +49 (0)30-28 47 01-0 23.03.2010 Ad hoc announcement, Financial News and Media Release distributed by DGAP. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Frogster Interactive Pictures AG Hardenbergstr. 9A 10623 Berlin Deutschland Phone: 030 / 284701-10 Fax: 030 / 284701-11 E-mail: frogster@ir-services.de Internet: http://www.frogster-ip.de/ ISIN: DE000A0F47J1 WKN: A0F47J Indices: Entry Standard Performance-Index Listed: Freiverkehr in Berlin, München, Düsseldorf, Stuttgart; Open Market (Entry Standard) in Frankfurt End of News DGAP News-Service ---------------------------------------------------------------------------
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