News
Shuffle Master Asia Expands Distributor Network
LAS VEGAS-(Business Wire)-May 6, 2008 - Shuffle Master, Inc. (NASDAQ Global Select Market: SHFL) announced today its appointment of two new distributors to cover the Asian market in Cambodia, Philippines, Thailand, Taiwan, Vietnam, Indonesia, Laos, Brunei, India and Myanmar for a period of three years effective May 5, 2008. The agreements, between CDI Corporation Sdn. Bhd. ("CDI"), a subsidiary of Dreamgate Corporation Berhad ("Dreamgate") in Malaysia, RGB Abbiati Pte Ltd ("Abbiati"), an associate company of Dreamgate, and Shuffle Master Asia Limited, will now give Shuffle Master an even greater presence across Asia through its distributor network.
"Growth in international markets continues to be a key priority for Shuffle Master as we concurrently increase the domestic reach of our products," stated Mark L. Yoseloff, Ph.D., Chairman and Chief Executive Officer. "New distributor relationships are directly tied to immediate placements but even more significantly lay the groundwork for long-term growth and stability. We have known and admired the management of Dreamgate for more than 30 years in the gaming and amusement industry and they were clearly our first choice due to their integrity, their considerable expertise in the region, their excellent reputation and their ability to extend our products to the right audiences."
Under the agreement, Abbiati will distribute Shuffle Master's Utility Products, which include shufflers, chippers, and intelligent card reading shoes as well as Proprietary Table Games ("PTG") and CDI will distribute Shuffle Master's Electronic Table Systems ("ETS") and Electronic Gaming Machines ("EGM").
Steven Lim, Group Sales & Marketing Director of Dreamgate, is pleased with the appointment and looking forward to working with Shuffle Master.
"The ability to deliver Shuffle Master's products complements and extends our existing portfolio and provides superior product lines for our customers in Asia," said Lim. "Shuffle Master's reputation and leadership in gaming equipment makes them an ideal supplier for us and we look forward to a long and successful relationship."
Piers Morgan, President of Shuffle Master Asia Limited, a Shuffle Master International Company, added, "The relationship with CDI and Abbiati is an important step for Shuffle Master to build upon its global distribution platform. This alliance contributes great local market knowledge, service and management and is a strong addition to our team of dedicated distributors."
In recent years, Asia has experienced unprecedented casino growth due in large part to new legalization of gaming in a number of markets in the region as well as the substantial expansion of gaming in Macau. Whereas Macau previously appealed primarily to gambling day-trippers, it has developed into a tourist destination with world-class resorts that feature plenty of amenities. Total gaming revenues in Macau were $10.6 billion in 2007, exceeding expectations and even Las Vegas gaming revenue. Independent of Macau, casino projects in Asia continue to be on the rise and present ample opportunity for operators and suppliers. The $4 billion Vietnam Casino City signals the arrival of the first Las Vegas-style resort-casino in Vietnam and has a targeted completion date of 2009. Las Vegas Sands Corp. plans to open its $ 3.6 billion Marina Bay Sands resort by late 2009 in Singapore. Resorts World at Sentosa in Singapore, scheduled to open in early 2010, expects to draw five million visitors annually. PricewaterhouseCoopers expects gambling revenue in the Philippines to pass $ 1 billion in 2010 due in large part to the opening of a colossal casino complex in Manila Bay. These projects represent only a portion of opportunities in the region and demonstrate the essentiality of having strong access to the Asian gaming market.
Shuffle Master and its subsidiaries have all previously held relationships with RGB Limited for distribution of their products to numerous Asian countries.
About Dreamgate Corporation Bhd
Dreamgate (listed on the Main Board of Malaysia Stock Exchange: DGATE 0037), a Malaysian company with over 600 employees in Asia, is the premier distributor of gaming & amusement machines and table games equipment in Asia and provides complementary services such as technical support management, marketing and sales, and research and development. The products and services provided by Dreamgate's subsidiaries expand beyond the shores of Malaysia to overseas markets such as Cambodia, Macau, Philippines, Singapore, Vietnam, Laos and Korea. Dreamgate maintains its focus on simple yet effective winning strategies that are based on quality and a people-oriented approach towards business.
About Shuffle Master, Inc.
Shuffle Master, Inc. is a gaming supply company specializing in providing its casino customers with improved profitability, productivity and security, as well as popular and cutting-edge gaming entertainment content, through value-add products in four distinct categories: Utility Products which includes automatic card shuffler, roulette chip sorters and intelligent table system modules, Proprietary Table Games which include live table game tournaments, Electronic Table Systems which include electronic multi-player table game platforms, and Electronic Gaming Machines which include traditional video slot machines for select markets and wireless gaming solutions. The Company is included in the S&P Smallcap 600 Index. Information about the Company and its products can be found on the Internet at www.shufflemaster.com.
Forward Looking Statements
This release contains forward-looking statements that are based on management's current beliefs and expectations about future events, as well as on assumptions made by and information available to management. The Company considers such statements to be made under the safe harbor created by the federal securities laws to which it is subject, and assumes no obligation to update or supplement such statements. Forward-looking statements reflect and are subject to risks and uncertainties that could cause actual results to differ materially from expectations. Risk factors that could cause actual results to differ materially from expectations include, but are not limited to, the following: changes in the level of consumer or commercial acceptance of the Company's existing products and new products as introduced; increased competition from existing and new products for floor space in casinos; continued consolidation of gaming operations; acceleration and/or deceleration of various product development, promotion and distribution schedules; product performance issues; higher than expected manufacturing, service, selling, legal, administrative, product development, promotion and/or distribution costs; changes in the Company's business systems or in technologies affecting the Company's products or operations; reliance on strategic relationships with distributors and technology and manufacturing vendors; current and/or future litigation, claims and costs or an adverse judicial finding; tax matters including changes in state, federal, or foreign state tax legislation or assessments by taxing authorities; acquisitions or divestitures by the Company or its competitors of various product lines or businesses and, in particular, integration of businesses that the Company may acquire; changes to the Company's intellectual property portfolio, such as the issuance of new patents, new intellectual property licenses, loss of licenses, claims of infringement or invalidity of patents; regulatory and jurisdictional issues (e.g., technical requirements and changes, delays in obtaining necessary approvals, or changes in a jurisdiction's regulatory scheme or approach, etc.) involving the Company and its products specifically or the gaming industry in general; general and casino industry economic conditions; our ability to attract and retain key personnel; the financial health of the Company's casino and distributor customers, suppliers and distributors, both nationally and internationally; adverse changes in the creditworthiness of parties with whom the Company has significant receivables; the pace of gaming expansion and the influence of anti-gaming constituents; the Company's ability to successfully and economically integrate the Table Game Division business acquired from Progressive Gaming International Corporation ; the Company's high level of indebtedness, and specifically the Company's ability to meet debt service obligations and to refinance indebtedness, including the Company's $150,000,000 contingent convertible senior notes (the "Notes") and the Company's $100,000,000 senior secured revolving credit facility (the "Revolver"), which will depend on the Company's future performance and other conditions or events and will be subject to many factors that are beyond the Company's control; various risks related to the Company's customers' operations in countries outside the United States, including currency fluctuation risks, which could increase the volatility of the Company's results from such operations. Additional information on these and other risk factors that could potentially affect the Company's financial results may be found in documents filed by the Company with the Securities and Exchange Commission, including the Company's current reports on Form 8-K, quarterly reports on Form 10-Q and annual report on Form 10-K.
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