EXHIBIT 99.1
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FOR IMMEDIATE RELEASE
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For Information Contact: (000) 000-0000
Xxxxx Xxxx - ext.7225
Xxxx Xxxxxxxxxxx - ext. 7535
Xxxxxx.xxx Limited Placed in Administration in U.K.
Action has no material financial effect on XxxxxxXxxx.xxx
FORT LAUDERDALE (May 31, 2002) - XxxxxxXxxx.xxx, Inc. (NASDAQ: SPLN), a leading
Internet sports media company and publisher of CBS XxxxxxXxxx.xxx
(xxx.xxxxxxxxxx.xxx), today announced that Xxxxxx.xxx Limited, Europe's leading
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digital sports channel provider and publisher of xxx.xxxxxx.xxx, was today
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placed into administration in an attempt to preserve the business and find a
buyer. Administration is a procedure in the U.K. pursuant to which a
court-appointed administrator assumes day-to-day control of a company in order
to determine whether a business should be reorganized, sold or liquidated.
SportsLine owns approximately 30% of Xxxxxx.xxx Limited, which has been carried
at a zero cost basis on XxxxxxXxxx.xxx's financial statements since last year.
The actions affecting Xxxxxx.xxx will not have any material effects on the
financial condition or business operations of XxxxxxXxxx.xxx. As previously
disclosed, since July 17, 2001, XxxxxxXxxx.xxx had no longer consolidated the
results of Xxxxxx.xxx and has accounted for its investment in Xxxxxx.xxx under
the equity method of accounting. XxxxxxXxxx.xxx had not been recording any
losses generated by Xxxxxx.xxx after July 17, 2001 as the book value of its
investment in Xxxxxx.xxx had been reduced to zero.
Xxxxx Xxxxxx and Xxxxx Xxxx of the London accounting firm of Xxxxx Xxxxx were
appointed this morning as administrators in the London High Court. According to
Xxxxxx.xxx's announcement, Xxxxxx said, "We think there is a possibility of
selling the xxxxxx.xxx website and we intend to run it through the World Cup.
For this we need to secure the support of key suppliers, the advertisers and
sponsors, and of course the public who use the site."
"XxxxxxXxxx.xxx's focus has been on our core domestic business and this action
will have no effect on how we operate or on our financial condition as we
deconsolidated Xxxxxx.xxx's operating results last year," said Xxxxxxx Xxxx,
founder, chairman and CEO of XxxxxxXxxx.xxx. "We and the other shareholders were
unwilling to provide additional capital to fund Xxxxxx.xxx's operations and we
support the decision by the Xxxxxx.xxx Board of Directors to place the company
in administration in order to protect the creditors."
XxxxxxXxxx.xxx owns and licenses the xxxxxx.xxx domain to Xxxxxx.xxx Limited
under the terms of an inter-company agreement. In the event of a sale of
Xxxxxx.xxx Limited, XxxxxxXxxx.xxx will carefully evaluate the terms of the
inter-company agreement to determine how it will be affected, including the
right of any purchaser to continue to use the xxxxxx.xxx domain.
Xxxxxx.xxx was formed and launched its first Web site in the United Kingdom in
1999. Xxxxxx.xxx has subsidiaries in Italy, France, Germany and Spain, which
according to the administrators are not in administration but are for sale.
About XxxxxxXxxx.xxx, Inc.
XxxxxxXxxx.xxx is the leading edge of media companies providing Internet sports
content, community and e-commerce. As the publisher of CBS XxxxxxXxxx.xxx and
the official Web sites of the NFL and the PGA TOUR, the Company serves as one of
the most comprehensive sports information sources available, containing an
unmatched breadth and depth of multimedia sports news, information,
entertainment and merchandise. XxxxxxXxxx.xxx also has strategic relationships
with Major League Baseball and the NBA, and serves as a primary sports content
provider for America Online.
Note: This press release contains forward-looking statements, which involve
risks and uncertainties. XxxxxxXxxx.xxx's actual results could differ materially
from those anticipated in these forward-looking statements. Factors that might
cause or contribute to such differences include, among others, competitive
pressures, the growth rate of the Internet, constantly changing technology and
market acceptance of the company's products and services. Investors are also
directed to consider the other risks and uncertainties discussed in
XxxxxxXxxx.xxx's Securities and Exchange Commission filings, including those
discussed under the caption "Risk Factors That May Affect Future Results" in
XxxxxxXxxx.xxx's latest Annual Report on Form 10-K. XxxxxxXxxx.xxx undertakes no
obligation to publicly release the result of any revisions to these
forward-looking statements, which may be made to reflect events or circumstances
after the date hereof or to reflect the occurrence of unanticipated events.
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