ESI Delays Second Quarter 2006 Financial Results
BURNABY, BC, Oct. 17 /CNW/ - ESI Entertainment Systems Inc. ("ESI" or the "Company") (TSX: ESY) announced today that it was not in a position to report and file its second quarter 2006 financial results on October 16 as required.
On September 30, 2006 the United States Congress passed the Unlawful Internet Gambling Enforcement Act of 2006. The Act provides that on-line gaming operators may not accept money from a person who is gaming from a state in which that type of betting or wagering or gaming is illegal. The Act mandates the establishment by designated payment systems of policies and procedures to identify and block or otherwise prevent or prohibit the acceptance of restricted transactions. On October 13, 2006, President George Bush signed the bill which made the Act law. ESI is evaluating the impact of the Act on its business and the disclosure in its financial statements, and is working on these issues with its auditors.
ESI has filed with securities regulators in Canada a notice of its default in filing its second quarter results on or before the 45th day after the end of the quarter, in the form attached to this release. As a consequence of missing the deadline, the securities regulators in Canada have issued an order preventing certain directors, executives and other designated insiders from trading in ESI securities.
Until it is able to report its second quarter 2006 results, ESI will issue updates every two weeks.
About ESI Entertainment Systems Inc.
ESI Entertainment Systems Inc. ("ESI") (TSX: ESY) provides products and services to the international gaming industry through its three principal subsidiaries, Citadel Commerce Corp., ESI Integrity Inc. and PlayLine Inc. ESI's products and services, which primarily consist of payment processing, transaction monitoring and turnkey gaming platforms, are deployed in the on-line and land based gaming markets.
Forward Looking Information
This news release contains forward-looking statements concerning ESI Entertainment Systems Inc, which statements can be identified by the use of forward-looking terminology such as “expect”, “proposed”, “may”, “plan”, “intend”, “will”, “would” or the negative thereof or any other variations thereon or comparable terminology referring to future events or results. Forward-looking statements are statements about the future and are inherently uncertain, and the actual events or results could be materially different than those anticipated in those forward-looking statements as a result of numerous factors discussed more fully in the Company’s Final Prospectus dated March 22, 2006, Annual Information Form and elsewhere. These risks include risks related to revenue growth, operating results, industry growth, changes in regulation and legislation, products, technology, financing, competition, personnel and other factors affecting the Company and its business, any of which could cause actual events or results to vary materially from ESI’s anticipated future results. Forward-looking statements are based on beliefs, opinions and expectations of ESI’s management at the time they are made, and ESI does not assume any obligation to update its forward-looking statements if those beliefs, opinions or expectations, or other circumstances should change. The Toronto Stock Exchange does not accept responsibility for this press release.
ESI Entertainment Systems Inc.
Anthony Greening
Chief Executive Officer and Interim Chief Financial Officer
Telephone: +1 604 299 6922
tgreening@esi.ca
www.esi.ca
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