ESI Updates Timeline for Release of Second Quarter 2006 Financial Results
BURNABY, BC, November 1, 2006 --- ESI Entertainment Systems Inc. (“ESI”) (TSX:ESY) a leading provider of secure payment processing services to the international online gaming industry, today provided an updated timeline for the release of the second quarter 2006 financial results. ESI was unable to file financial statements (and related management’s discussion and analysis and certifications) for its second quarter ended August 31, 2006 on or prior to the applicable filing deadline of October 16, 2006. ESI is, accordingly, in default of the requirement to file interim financial statements on or before the 45th day after the end of each interim period.
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 that 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 had anticipated filing its second quarter financial statements on or before October 27, 2006. It continues to work with its auditors to complete the statements. It now expects to file its second quarter financial statements on or before November 14, 2006.
There is no other material change in the information contained in ESI’s Notice of Default filed October 17, 2006.
About ESI Entertainment Systems Inc.
ESI Entertainment Systems Inc. is a public company traded on the Toronto Stock Exchange (TSX: ESY). Its wholly owned subsidiary, Citadel Commerce Corp., is a leading provider of secure and efficient payment processing services to the international online gaming industry.
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
Telephone: +1 604 299 6922
tgreening@esi.ca
www.esi.ca
Investor Relations:
David Feick
The Equicom Group
Telephone: +1 403 538 4787
dfeick@equicomgroup.com
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