--------------------------------------------------------------------------------
FOR IMMEDIATE RELEASE
--------------------------------------------------------------------------------
For Information Contact:
For XxxxxxXxxx.xxx, Inc. For Internet Sports Network, Inc.
Xxxxx Xxxx (000) 000-0000 x0000 Mansfield Communications (000) 000-0000
Xxxxxxx Xxxxxxx (000) 000-0000 x 0000 Xxxxxx Xxxxxx or Xxxxx Xxxxxxx
XxxxxxXxxx.xxx, Inc. Acquires Daedalus World Wide Corporation and
Forges Long-Term Strategic Relationship with Internet Sports Network, Inc.
Agreements Solidify Company's Position as Fantasy Sports Leader
FORT LAUDERDALE, FL (December 22, 1999) - XxxxxxXxxx.xxx, Inc. (NASDAQ:SPLN),
the leading global Internet sports media company, announced today that it has
completed the acquisition of Daedalus World Wide Corporation (DWWC), the
developer of SportsLine's Xxxxxxxxxxxx.XXX fantasy products since 1998 and the
premier provider of fantasy sports products on the Internet. SportsLine has also
entered into a long-term strategic relationship with Internet Sports Network,
Inc. (ISN) (OTC: ISNI-BB), a leading provider of Internet-based sports
entertainment and investment contests, fantasy leagues and promotions. These
agreements enable XxxxxxXxxx.xxx to increase fantasy advertising opportunities
and build the most robust fantasy channel on the Web, featuring the best pay and
free products, games and contests.
"There are tremendous synergies with these two companies that will allow
XxxxxxXxxx.xxx to realize a guaranteed revenue stream, while reducing costs and
enhancing the offerings to our users in the fantasy, contests and sports games
area," said Xxxxxxx Xxxx, founder and CEO of XxxxxxXxxx.xxx, Inc. "We recognize
the importance of the fantasy sports audience in terms of page views and
stickiness: the length of time they spend on our site, the amount of research
and statistics that fantasy players utilize, and their aptitude for purchasing
sports merchandise and memorabilia."
The Company's acquisition of DWWC, ensures XxxxxxXxxx.xxx its continued
leadership position in the fantasy sports arena, without continuing to share
subscriber and advertising revenues.
The consideration for the acquisition of DWWC is $31 million, consisting of
approximately $27 million of XxxxxxXxxx.xxx common stock, and $4 million in
cash. XxxxxxXxxx.xxx also agreed to issue additional common stock, if certain
revenue and/or subscription targets are reached. DWWC will be operated as
Xxxxxxxxxxxx.XXX, Inc., a subsidiary of XxxxxxXxxx.xxx, with the operations
remaining in New York City.
Under the terms of its four-year agreement with ISN, XxxxxxXxxx.xxx will receive
a minority equity stake that could grow up to 19.9%, with warrants and other
securities, two Board positions and $17 million in cash as a guarantee against
advertising and subscription revenue sold by XxxxxxXxxx.xxx, in exchange for
promotion and distribution of ISN's array of products. ISN currently has more
than 1.7 million registered users and creates and manages private label contests
for some of the world's most trafficked Web sites.
- more -
XxxxxxXxxx.xxx, Inc. Acquires Daedalus World Wide Corporation and Forges
Long-Term Strategic Relationship with Internet Sports Network, Inc. page 2
The addition of ISN's fantasy products to SportsLine's Xxxxxxxxxxxx.XXX
offerings will provide more selections for the fantasy player, which will result
in more activity and additional ways for advertisers to reach this devoted and
passionate audience.
About XxxxxxXxxx.xxx, Inc.
XxxxxxXxxx.xxx, Inc. is at the leading edge of media companies providing
Internet sports content, community and e-commerce on a global basis.
XxxxxxXxxx.xxx, Inc.'s content includes more than 400,000 pages of multimedia
sports information, entertainment and merchandise. Founded in 1994 as SportsLine
USA, Inc., the Company changed its name to XxxxxxXxxx.xxx, Inc. in November
1999. Its flagship Internet sports service (xxxx://xxx.xxxxxxxxxx.xxx) was
renamed CBS SportsLine in March of 1997 as part of an exclusive promotional and
content agreement with CBS Sports. XxxxxxXxxx.xxx, Inc. produces the official
league Web sites for Major League Baseball, the PGA TOUR and NFL Europe League,
and serves as the primary sports content provider for America Online, Netscape
and Excite. In May 1999, the Company commenced operations in Europe through its
majority-owned subsidiary, Xxxxxx.xxx Limited.
About Xxxxxxxxxxxx.XXX, Inc.
Xxxxxxxxxxxx.XXX, Inc., formerly Daedalus World Wide Corporation, is the
developer of Xxxxxxxxxxxx.XXX, the world's premier fantasy sports brand, which
includes games and products for professional auto racing, baseball, basketball,
football, golf, hockey and soccer. Founded in 1995 as a privately held
corporation, Xxxxxxxxxxxx.XXX, Inc. develops and hosts fantasy league management
tools, fantasy games and sports contests, and continually sets industry
standards for the groundbreaking features of its products.
About Internet Sports Network
With over 1.7 million registered users, ISN (xxxx://xxxx.xxxxxxxxxxxx.xxx) and
its destination site, xxx.xxxxxxxxxxxx.xxx, is a leading provider of
Internet-based sports entertainment and investment contests, fantasy leagues,
merchandising and promotions, and features a sports memorabilia and merchandise
auction site. ISN has been developing and operating online Internet sports
entertainment and contest applications since 1997, and similar offline products,
since 1985. ISN has recently acquired SportsMark Promotions Inc., Pickem Sports
Inc., Ultimate Sports Publishing and Sports Buff and offers fantasy football,
baseball, basketball, hockey, golf, soccer, NASCAR, Indy Car, Formula I racing,
academy award and stock market contests and a wide variety of challenge, trivia
and Pick'em style contests.
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.
# # #
