Boss Media Casino News 2006

[Casinonews]

25.01.2006

Boss Media signs new agreement with Synot Lotto covering continued expansion on the Czech market

After the successful pilot project on the Czech market, Synot Lotto is continuing to broaden its investment in systems for centrally controlled gaming machines.

Accordingly, the pilot project is being carried out as planned with full-scale implementation in the coming year. Some 500 terminals will be installed during 2006, which will result in a total of 700 gaming machines by year-end.

The high-technology gaming machine is designed specifically for the Czech market. The centrally controlled slot and casino games are installed in gaming halls and pubs.

There are a total of about 45,000 mechanical slot machines in the Czech Republic. Most of these are expected to compete with new on-line terminals in the coming years. Synot has about one third of the total number of such machines on the Czech market.

"This is more than just a sign that the pilot project was a success," says Markus Holm, Vice President of Boss Media. "It is proof that there is continued high demand for Boss Media's leading IVT (Interactive Video Terminal) system. We provide high cost-efficiency, increased central control and sharply expanded player functions that is adapted to local markets - as a result of which we contribute significantly to strengthening the operator's business."

"Synot believes that the market in Czech Republic is nearly full when it comes to the older versions of gambling machines and that the future lays with the modern IVT machines. This is confirmed by the result from the recently finished IVT pilot project. The signing of the contract with Boss Media AB emphasizes Synot's position as one of the market leaders on the Czech market and also confirms Synot's strategy to lead the future development of the gambling business by bringing new independent gaming solutions to the Czech market, says Petr Mikoaka, Synot Lotto a.s."



Computerübersetzung

Beherrschen Sie neue Vereinbarung der Mittelzeichen mit anhaltender Expansion

Synot Lotto Bedeckung auf dem tschechischen Markt 2006-01-25 09:53 nach dem erfolgreichen Versuchsprojekt auf dem tschechischen Markt, Synot Lotto fortfährt, seine Investition in den Systemen für zentral gesteuerte Spielmaschinen zu erweitern. Dementsprechend wird das Versuchsprojekt wie vorgesehen mit maßstäblicher Implementierung im kommenden Jahr durchgeführt.

Ca. 500 Terminals werden während 2006 angebracht, das eine Gesamtmenge von 700 Spielmaschinen durch year-end ergibt. Die Hightechspielmaschine ist spezifisch für den tschechischen Markt bestimmt. Die zentral gesteuerten Schlitz- und casinospiele werden in Spielhallen und in Publikationen angebracht.

Es gibt eine Gesamtmenge von ungefähr 45.000 mechanischen Schlitzmaschinen in der tschechischen Republik. Die meisten diesen werden erwartet, um mit neuen on-line-Anschlüssn in den kommenden Jahren zu konkurrieren. Synot hat ungefähr Drittel der Gesamtzahl solchen Maschinen auf dem tschechischen Markt.

"dieses ist mehr als gerade ein Zeichen, daß das Versuchsprojekt ein Erfolg war," sagt Markus Holm, Vizepräsident der Chefmittel. "es ist Beweis, daß es anhaltende hohe Nachfrage nach führendem System IVT der Chefmittel (wechselwirkendes Videoterminal) gibt.

Wir stellen hohe Wirtschaftlichkeit, erhöhte zentrale Steuerung und scharf erweiterte Spielerfunktionen zur Verfügung, der lokalen Märkten angepaßt wird - resultierend aus, welchen wir beitragen erheblich zum Verstärken des Geschäfts des Operators.", "Synot glaubt, daß der Markt in der tschechischen Republik fast voll ist, wenn er zu den älteren Versionen der Spielenmaschinen kommt und daß die Zukunft mit den modernen IVT-Maschinen legt.

Dieses wird durch das Resultat vom vor kurzem fertigen IVT-Versuchsprojekt bestätigt. Das Unterzeichnen des Vertrages mit Chefmitteln AB hebt Position Synots hervor, während einer der Marktführer auf dem tschechischen Markt und auch Strategie Synots bestätigt, um die zukünftige Entwicklung des Spielengeschäfts, indem es neue unabhängige Spiellösungen zum tschechischen Markt zu führen holt, sagt Petr Mikoaka, Synot Lotto a.s.",

[Casinonews]

10.Februar 2006

Year-end Report 2005 Boss Media AB (publ)

Full year 2005

Net sales increased by 15 percent to SEK 246 (213) million.
Royalty revenues increased by 55 percent to SEK 191.1 (123.2) million.
Profit after financial items was SEK 4.4 (77.6) million.
Net profit was SEK 8.1 (55.5) million.
Earnings per share were SEK 0.14 (0.97).
Non-recurring items had a negative effect of SEK 23.2 million (positive effect of SEK 10.5 million last year).
October-December 2005

Net sales increased by 36 percent to SEK 76 (56) million.
Royalty revenues amounted to 56.9 (37.0) million, an increase by 54 percent compared with the same period last year.
Profit after financial items was SEK -31.3 (16.4) million.
Non-recurring items had a negative effect of SEK 40.2 million.
Outlook for 2006

Net sales are expected to increase by 20 to 25 percent, which is in pace with the rest of the market.

[Newsflash]

27.03.2006

Boss Media develops Swedish Games Corp.'s world unique Internet poker - more government-owned licensed gaming companies expected to follow suit

Swedish Games Corp. (Svenska Spel AB) is the first among government-owned licensed gaming companies worldwide with a poker site, which is being launched on March 30. Boss Media provided the development work and system delivery. The next step on the market is expected to be that many government-owned licensed gaming companies follow in Svenska Spel's footsteps and launch their own sites.

Svenska Spel first among 140 WLA operators
In total, there are about 140 WLA government-owned licensed gaming companies, so-called WLA (World Lottery Association) companies, worldwide. Svenska Spel is a pioneer among WLA operators in on-line gaming.

"Svenska Spel is the first government-owned licensed gaming company to launch Internet poker. There are more companies in the starting blocks and they are well aware of our role in the development of this poker site and how important it is that the system supplier is the right one," says Johan Berg, President of Boss Media.

Gaming responsibility a critical issue - Boss Media offers unique system
In November 2005, Svenska Spel received approval from the government to be the first Swedish gaming company to launch Internet poker. Since then, preparatory work has been under way at full speed. The aim during the entire development process was to create a world-class poker site in terms of entertainment and gaming responsibility.

"Gaming responsibility is a critical factor for the government-owned licensed gaming companies. Our solution is clearly more advanced that what is available on the market today. It creates greater security for the end-users as well as for the gaming company since they gain increased control of the gaming operations," says Johan Berg.

Platform for increased control and more selection possibilities
Boss Media's instant gaming platform, which was already being used by Svenska Spel, was selected as the base of the development work to ensure that the high demands could be met.

"It is a system that is easy to implement and which offers a high degree of control and many choices for the operator in the future. For example, it is easy to add new and change existing games and other programs that enhance the efficiency and security of the gaming operations. We are seeing great interest in this solution among the government-owned licensed gaming companies," says Johan Berg.

Contact: Johan Berg, President and CEO, Boss Media AB (publ), telephone: +46 (0)470 70 30 01

[Newsflash]

28.03.2006

Boss Media invests in Chinese E-sport

Boss Media, a world leading gaming software supplier, acquires 20% in Hong Kong based e-sports provider Bele Ltd. Bele is delivering an online e-sport gaming service to gamers in China.

"This is of course a unique opportunity for Boss Media to invest in Bele who is in pole position to capture the fast growing Chinese e-sports market. This will build our experience and knowledge for the future about one of the worlds biggest consumer markets, but even more importantly, a way for us to establish invaluable contacts in China,", says Johan Berg, CEO of Boss Media AB.

Bele holds the exclusive E-Sport World Cup license (ESWC) for China, globally the most recognized E-Sport brand. There are today approximately 50 countries that participate in qualifications to the E-Sport World Cup Final. Bele will organize and run qualification events in 28 major Chinese cities.

"Through the commitment of Boss Media we now we have all the necessary experience to operate a gaming service that will have millions of subscribers" says Krister Nilsson, Chairman of Bele Ltd.

The main distribution channel for Bele's online tournament platform will be a selection of the +150,000 Internet cafes in China. The game servers, in the internet cafes, are connected to a central server that manages ranking, tournaments, loyalty schemes and sub....ion fees.

"If and when the Chinese market deregulates, access to Bele's infrastructure will enable our customers to quickly tap in to the Chinese market", says Markus Holm, CFO at Boss Media AB.

E-Sport is one of the world's fastest growing gaming disciplines. It mainly includes the gaming genres; strategy, shooting, racing and sports games like FIFA World Cup, Counter-Strike, Battlefield etc.

[Newsflash]

31.03.2006

NOTICE OF THE ANNUAL GENERAL MEETING OF THE SHAREHOLDERS IN BOSS MEDIA AB (PUBL) TO BE HELD ON THE 4th OF MAY 2006 IN VÄXJÖ

The shareholders in Boss Media AB (publ), 556400-0353, are hereby called to the annual general meeting of the shareholders to be held on May 4, 2006 at 3:00 p.m. in Filmstaden, address Oxtorget 10 in Växjö. Registration will begin at 2:15.

The Right to Participate in the Meeting

Shareholders wishing to participate in the shareholders' meeting are to:

- Be registered as owner in the printout of the share register that VPC AB generates as per Thursday, the 27th of April 2006 (see under heading nominee registered shares below), and

- Have given notice to the company of their intention to participate in the meeting at the address Boss Media AB, Box 3243, 350 53 Växjö, Sweden, via the company's internet home page www.bossmedia.se, by telephone 0470-70 30 00, by facsimile 0470-70 30 50 or by e-mail to [email protected] at the latest by Tuesday, May 2, 2006 at 4:00 p.m.

Nominee Registered Shares

Shareholders, whose shares are registered in the name of a nominee, in order to have the right to participate in the shareholders' meeting, must in addition temporarily re-register the shares in their own name in the share register held by VPC AB for the company. Shareholders wishing such a re-registration must notify the nominee as to this in due time prior to Thursday, April 27, 2006, by when such registration must be effected in order to be considered in the shareholder register for the shareholders' meeting which VPC AB generates as per the named day.

Read more: Bossmedia presse releases

[Casinonews]

19.April 2006

Boss Media and Betandwin renegotiate license agreement

Since 2004, Betandwin has been one of Boss Media's largest Internet casino customers and since 2005 also one of the largest customers in Boss Media's partner-based poker network. As a result of the new agreement between the companies, Betandwin is extending the Internet casino contract with Boss Media, initially to August 1, 2007.

As a consequence of Betandwin's acquisition of the Swedish gaming operator Ongame, Betandwin has further decided to focus on Ongame's poker platform as of June 2006. Currently, Betandwin Poker accounts for about 10 percent of Boss Media's total royalty revenues.

[Casinonews]

02.Mai 2006

In connection with the publication of Boss Media's interim report for the period January -

March 2006, Boss Media extends invitation to telephone conference

Boss Media has the pleasure of extending an invitation to participate in a telephone conference on May 5, 2005, at 10.00 a.m. The President of Boss Media, Johan Berg, and CFO Markus Holm will be presenting the interim report and answering questions. The presentation will be held in Swedish. A telephone conference will be held in English at 11:00 a.m. Presentation material will be available at www.bossmedia.se prior to the start of the telephone conference.

The interim report will be published on May 4 and will also be made available on that date at the company's website, www.bossmedia.se.

To participate in the conference, please call +46 (0)8 505 201 10 not later than five minutes before the commencement of the conference to help ensure the conference begins at the correct time. Regardless of where you are calling from, it is necessary to dial the area code to be able to participate in the telephone conference.

A recorded version will be available for ten days following the conference at telephone number +46 (0)8 5052 0333, code 704011 (Swedish presentation) and code 704016 (English presentation).

For further information, please contact:
Markus Holm, Vice President and CFO, Boss Media AB (publ), telephone: +46 (0)470 70 30 06 or +46 (0)70 953 05 85, e-mail: [email protected]

[Casinonews]

04.Mai 2006

Interim Report 1 January - 31 March 2006
2006-05-04 13:15

Net sales increased by 36 percent to SEK 75.5 (55.5) million.
Royalty revenues increased by 43 percent to SEK 60.7 (42.5) million.
Profit after financial items was SEK 11.8 (10.6) million. Changed accounting policies as of January 1, 2006 regarding hedge accounting affected the profit for the period negatively by SEK 3.6 million.
Net profit was SEK 7.5 (7.5) million.
Earnings per share were SEK 0.13 (0.13).

Gesamter Quartalsbericht: Boss Media Geschäftsbericht, 1.Quartal 2006



04.Mai 2006

ANNOUNCEMENT FROM ANNUAL GENERAL MEETING OF BOSS MEDIA AB (PUBL) HELD MAY 4, 2006

The shareholders in Boss Media AB (publ) held the Annual General Meeting on May 4, 2005 in Växjö, Sweden.

Discharge from liability
The Meeting discharged the members of the Board and the President from liability for fiscal year 2005.

Fees
The fees to be paid to the Board of Directors were set at SEK 850,000 (preceding year: SEK 700,000), with SEK 250,000 to the Chairman of the Board and SEK 150,000 each to the other members of the Board. As in prior years, it was resolved that the fees to the auditors would be paid in accordance with generally accepted principles for fees to auditors in accordance with approved invoices.

Board of Directors
The Meeting decided to re-elect Björn Nordstrand, Thore Ohlsson, Per Thunander, Jan Westholm and Meg Tivéus. Björn Nordstrand was appointed Board Chairman.

Nomination Committee
The Meeting resolved in accordance with the proposal of the Nomination Committee that the Nomination Committee in advance of the next Annual General Meeting shall be appointed through the three largest shareholders in the company each appointing one representative, who together with the Board Chairman shall comprise the Nomination Committee.

New Articles of Association
The Meeting approved the new wording of the Company's Articles of Association as a consequence of the changes implemented in the new Swedish Companies Act.

Warrants program
The Meeting unanimously approved the Board's proposal for a new warrants program. The Meeting resolved to issue 2,000,000 warrants. These can be exercised during the period July 1, 2008 through December 31, 2009.
At full exercise of all issued warrants (2,000,000), the dilution effect would be about 3.4 percent.

Authorization to decide on new issues
The Meeting resolved to authorize the Board for the period until the next Annual General Meeting to decide on new issues of up to 7,500,000 shares. Such issues may be implemented with waiver of the shareholders' preferential rights and with payment through so-called capital contributed in kind (non-cash issue).

President's address
In his address, Boss Media's President, Johan Berg, commented on development during fiscal year 2005. He also provided a report on the prevailing market situation and the work with creating continued growth for the Boss Media Group. The President also reported on the Group's development during the first quarter of 2006 in accordance with the interim report that was released earlier in the day.



05.Mai 2006

Boss Media receives SEK 22.5 million in supplemental purchase payment for shares in Essnet Interactive

In conjunction with the business in the former partly owned Essnet Interactive AB being divided between the owners, Boss Media and EssNet AB agreed, among other points, on a supplemental purchase payment for Boss Media's shares in EssNet Interactive. The supplemental payment was based on the results of EssNet Interactive's deliveries to Norsk Tipping. However, the deliveries have been postponed on several occasions and it is currently uncertain if and when Norsk Tipping will order the gaming terminals on which the supplemental purchase consideration is based.

In conjunction with EssNet AB selling most of its assets and operations to Scientific Games in January 2006, negotiations were initiated with Boss Media about the possibility for EssNet to settle the supplemental purchase price already in 2006. These negotiations have resulted in an agreement in which Boss Media receives a supplemental purchase payment of SEK 22.5 million. The amount, to be paid in May 2006, is in principle a risk-weighted present value calculation of the maximum future amount of the supplemental purchase consideration. Combined with the SEK 25 million that Boss Media was paid for its shares in EssNet Interactive during 2005, Boss Media has received a total of SEK 47.5 million for its shares in Essnet Interactive.

Boss Media has also agreed with Essnet Interactive on the purchase of certain assets and discontinuation of certain undertakings between the parties, whereby Boss Media shall pay an amount of SEK 5 million to Essnet Interactive.

"We are highly pleased with the result of the negotiations," says Johan Berg, President of Boss Media. The supplemental purchase payment is linked to Norsk Tipping's possibilities to deliver gaming terminals, a transaction that increasing appears more uncertain as each day passes. Boss Media can now put this business in the past and focus on the future."

After completion of both of these agreements, Boss Media and EssNet no longer have any contractual commitments or demands between them.

[Casinonews]

05.Mai 2006

Boss Media receives SEK 22.5 million in supplemental purchase payment for shares in Essnet Interactive

In conjunction with the business in the former partly owned Essnet Interactive AB being divided between the owners, Boss Media and EssNet AB agreed, among other points, on a supplemental purchase payment for Boss Media's shares in EssNet Interactive. The supplemental payment was based on the results of EssNet Interactive's deliveries to Norsk Tipping. However, the deliveries have been postponed on several occasions and it is currently uncertain if and when Norsk Tipping will order the gaming terminals on which the supplemental purchase consideration is based.

In conjunction with EssNet AB selling most of its assets and operations to Scientific Games in January 2006, negotiations were initiated with Boss Media about the possibility for EssNet to settle the supplemental purchase price already in 2006. These negotiations have resulted in an agreement in which Boss Media receives a supplemental purchase payment of SEK 22.5 million. The amount, to be paid in May 2006, is in principle a risk-weighted present value calculation of the maximum future amount of the supplemental purchase consideration. Combined with the SEK 25 million that Boss Media was paid for its shares in EssNet Interactive during 2005, Boss Media has received a total of SEK 47.5 million for its shares in Essnet Interactive.

Boss Media has also agreed with Essnet Interactive on the purchase of certain assets and discontinuation of certain undertakings between the parties, whereby Boss Media shall pay an amount of SEK 5 million to Essnet Interactive.

"We are highly pleased with the result of the negotiations," says Johan Berg, President of Boss Media. The supplemental purchase payment is linked to Norsk Tipping's possibilities to deliver gaming terminals, a transaction that increasing appears more uncertain as each day passes. Boss Media can now put this business in the past and focus on the future."

After completion of both of these agreements, Boss Media and EssNet no longer have any contractual commitments or demands between them.

[Casinonews]

01.Juni 2006

Boss Media's partner-based poker network grows

Boss Media recently concluded agreements with two Cypress-based gaming operators Bashedeger and The BetArena. Both companies will go live with Boss Media's poker solution in August.

In addition to these customers, eight more operators have joined Boss Media's poker network to date this year: Hellenic Poker, Magic Number, Fun Time Bingo, EuroTelegroup, Maharaja Club, Mr Poker, Fortuno and BetClick. All of these operators will launch their poker offering not later than in the third quarter of this year.

"Succeeding with linking ten new operators to our poker network in the first months of the year demonstrates that Boss Media has a highly competitive poker offering," says Johan Berg, President and CEO of Boss Media.

[Casinonews]

02.Juni 2006

Boss Media signs agreement with Zest Gaming

Boss Media has signed an agreement with Zest Gaming, an international gaming & cabinet producer and operator, based in Lecco, Italy. The agreement specifies partnership for sale of cabinets for the IVT's both locally and international.

Boss Media shall also supply Zest Gaming with three games that will be placed on their cabinets for the Italian market. The Italian state has given out 10 concessions to different operators and the operators are holding a combined number of +170,000 gaming machines.

"We are very happy to join forces with Zest Gaming and to learn more about the Italian market. This will strengthen our knowledge of one of the biggest markets in Europe. Not forgetting how beneficial this will be to us when the new VLT law comes in to place as we would already have a head start in learning what Italian players are looking for", says Henrik Sandin, manager for IVT division, Boss Media.

"I am pleased to be able to offer Boss Media content on our hardware platform. The platform is most advanced in the market so together with Boss Media's superior graphics and game content, we will have an extremely competitive package" says Roberto Cian, CEO of Zest Gaming.

For further information, please contact:
Johan Berg, President and CEO, Boss Media AB (publ), telephone: +46 (0)470 70 30 01
or +46 (0)733 70 30 25, e-mail: [email protected]

Roberto Cian, CEO, Zest Gaming, telephone +39 3346231356, e-mail: [email protected]

Boss Media AB (publ) is one of the world's leading suppliers of systems for digitally distributed gaming entertainment. Boss Media develops gaming system solutions for such distribution channels as personal computers, interactive video terminals, mobile phones and digital TV. Licensees are offered a customized gaming system, an integrated payment system as well as related services. The Boss Media-share is listed on the O-list (Attract 40) of Stockholmsbörsen (Stockholm Stock Exchange). More information about
Boss Media is available at www.bossmedia.se.

Zest Gaming is a leading supplier of gaming machines for the Italian and International market. The company is based in Lecco and is producing a line of new cabinet models for the Italian market and the international casino and AWP market. Zest cooperates with the prestigious Giugiaro Group (designers for Ferrari cars among other things) for the design of their Mission Cabinets and Multi Player Roulette. More information about Zest Gaming is available at www.zestgaming.it.

[Casinonews]

26.Juni 2006

Continued sales successes for Boss Media

Boss Media has concluded poker agreements with bet-at-home and White Label. Accordingly, a total of 12 new operators have joined Boss Media's partner-based poker network to date this year.

"Our considerable sales successes demonstrate the fact that our positioning as one of very few independent system and service suppliers to the gaming sector is correct. Increasing numbers of companies in the sector are realizing that it is ultimately impossible to have suppliers who compete for the same customers," says Johan Berg, President of Boss Media.

bet-at-home was established in Austria in 1999 and was one of the earliest Internet-based "sports-betting" companies in the European market. Today, the company has approximately 400,000 registered players, who are offered betting opportunities in nine different languages. Bet-At-Home is listed on the Frankfurt Stock Exchange in Germany and is ranked by CasinoCity.com as of one the 15 largest Internet-based betting companies worldwide.

White Label currently operates a number of Internet casinos. Boss Media's poker solution will be cross-marketed primarily to the company's existing player base.

Both Bet-At-Home and White Label will go live with Boss Media's gaming products during the third quarter.

[Casinonews]

07.07.2006

Boss Media divests holding in Jadestone Group AB

Boss Media has divested its 20-percent shareholding in Jadestone Group AB for SEK 17.1 million. The sale generated a capital gain of SEK 7.1 million.

The reason for the divestment is the strategic change implemented by Boss Media during the spring, which entails, among other consequences, that Boss Media will focus primarily on the Internet, interactive video terminals (IVT) and, in the future, interactive digital-TV as distribution channels for digital gaming entertainment.

"The cooperation with Jadestone was concentrated around mobile games. When we received a good offer, we decided to sell, because mobile games are no longer part of our area of focus," says Johan Berg, President of Boss Media.

For further information, please contact:

[Newsflash]

11.August 2006

Interim Report 1 January - 30 June 2006
January-June 2006

Sales increased by 41 percent to SEK 154.5 (109.2) million.
Royalty revenues increased by 45 percent to SEK 125.0 (86.2) million.
Profit after financial items was SEK 40.6 (21.1) million. Adjusted for non-recurring items and changed accounting policies as of January 1, 2006 regarding hedge accounting, the profit amounted to SEK 32.3 (4.1) million.
Net profit was 34.1 (21.9) million.
Earnings per share were SEK 0.59 (0.38).
Second quarter 2006

Sales increased by 47 percent to SEK 79.0 (53.7) million.
Royalty revenues increased by 45 percent to SEK 64.2 (44.2) million.
Profit after financial items was SEK 28.8 (10.5) million. Adjusted for non-recurring items and changed accounting policies as of January 1, 2006 regarding hedge accounting, the profit amounted to SEK 17.0 (-6.5) million.
Net profit was 26.6 (14.4) million.
Earnings per share were SEK 0.46 (0.25).


Business activities during the second quarter 2006
During the second quarter Boss Media signed an agreement with Zest Gaming, an international gaming and cabinet producer and operator, based in Lecco, Italy. The agreement specifies partnership for sale of cabinets for the IVT’s both locally and international. Boss Media shall also supply Zest Gaming with three games that will be placed on their cabinets for the Italian market. The Italian state has given out 10 concessions to different operators and the operators are holding a combined number of +170,000 gaming machines.

At the end of the second quarter Boss Media signed an agreement to deliver a poker system to Bet-at-Home.com. bet-at-home was established in Austria in 1999 and was one of the earliest Internet-based “sports-betting” companies in the European market. Today, the company has approximately 400,000 registered players, who are offered betting opportunities in nine different languages. Bet-At-Home is listed on the Frankfurt Stock Exchange in Germany and is ranked by CasinoCity.com as of one the 15 largest Internet-based betting companies worldwide.

In total, 11 new operators joined Boss Media’s partner-based poker network during the second quarter, making a total of 12 to date this year.

During the second quarter Boss Media received SEK 22.5 million in additional purchase price for the shares in EssNet Interactive AB. In conjunction with the business in the former partly owned Essnet Interactive AB being divided between the owners, Boss Media and EssNet AB agreed, among other points, on a supplemental purchase price for Boss Media’s shares in EssNet Interactive. The supplemental payment was based on the results of EssNet Interactive’s deliveries to Norsk Tipping. However, the deliveries have been postponed on several occasions and it was currently uncertain if and when Norsk Tipping should order the gaming terminals on which the supplemental purchase consideration was based. In conjunction with EssNet AB selling most of its assets and operations to Scientific Games in January 2006, negotiations were initiated with Boss Media about the possibility for EssNet to settle the supplemental purchase price already in 2006. These negotiations resulted in an agreement in which Boss Media received an additional payment of SEK 22.5 million. The amount was in principle a risk-weighted present value calculation of the maximum future amount of the supplemental purchase consideration. Combined with the SEK 25 million that Boss Media was paid for its shares in EssNet Interactive during 2005, Boss Media has received a total of SEK 47.5 million for its shares in Essnet Interactive. Boss Media has also agreed with Essnet Interactive on the purchase of certain assets and discontinuation of certain undertakings between the parties, whereby Boss Media paid an amount of SEK 5 million to Essnet Interactive, which has been recorded as other external costs. After completion of both of these agreements, Boss Media and EssNet no longer have any contractual commitments or demands between them.

In September 2004, Boss Media signed a seven-year consulting contract with Accenture regarding outsourcing of its development and maintenance of gaming platforms. During the second quarter, Boss Media and Accenture decided to focus future cooperation on cultivating and future deliveries to the important WLA segment, as a result of which the consulting agreement between Boss Media and Accenture was terminated. The change to the new form of cooperation with Accenture will occur mainly in the third quarter. In conjunction with termination, Boss Media paid a contractually agreed fee of SEK 3.6 million, which has been recorded as other external costs.

After the close of the reporting period, Boss Media divested its 20% shareholding in Jadestone Group AB for SEK 17.1 million, resulting in a capital gain of SEK 7.1 million. The background to the divestment is the change in strategy implemented by Boss Media this spring that, among other effects, means that Boss Media will focus primarily on the Internet, interactive video terminal (IVT) and in the future interactive digital TV as distribution channels for digital gaming entertainment.

On August 1, BetandWin migrated its players from Boss Media’s poker network to Ongame’s poker network, which BetandWin acquired earlier this year. Consequently, the migration occurred somewhat later than previously announced.


Sales January-June 2006 The Group’s sales amounted to SEK 154.5 (109.2) million, an increase by 41 percent compared with the same period last year.



Revenues from license sales amounted to SEK 12.8 (13.9) million.



Royalty revenues increased by 45 percent to SEK 125.0 (86.2) million, which was primarily due to the continuous growth in Boss Media’s partner-based poker network.



Service revenues from operational, support and payment management services amounted to SEK 15.3 (8.6) million, an increase by 78 percent compared with the last year.

Sales April-June 2006
Sales during the second quarter amounted to SEK 79.0 (53.7) million, an increase by 47 percent compared with the same period last year. Compared with the first quarter 2006, sales increased by 5 percent.






Result January-June 2006
Profit after financial items amounted to SEK 40.6 (21.1) million. Non-recurring items affected the profit after financial items by SEK 14.8 (17.0) million.

Unrealized fair value changes on currency forward contracts related to cash flow hedges amounted to SEK 6.5 (-9.6) million. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recognized in equity. The gain or loss relating to the ineffective portion is recognized immediately in the income statement (other operating income/expenses). In prior years, all changes in fair value for various derivative instruments used for hedging purposes were reported immediately in the income statement (financial items).

Adjusted for non-recurring items and unrealized fair value changes recognized in equity, profit after financial items amounted to SEK 32.3 (4.1) million.



Exchange-rate differences and fair-value changes affected operating profit by SEK -0.1 (4.3) million and profit after financial items by SEK -1.1 (-12.4) million. Reporting in the income statement and balance sheet was carried out as shown below.




During the first half-year, hardware (gaming terminals) was acquired for SEK 3.9 million (raw materials and consumables) and resold (other operating income) for SEK 4.6 million. The hardware sale is of a non-recurring nature.

Expenditures for external consulting purchases to production and development amounted to SEK 25.7 (43.0) million, of which SEK 8.8 (12.0) million was expensed in the income statement and SEK 16.9 (31.0) million was capitalized in the balance sheet.



Adjusted for non-recurring items, other external costs increased by SEK 8.5 million to SEK 45.6 (37.1) million. SEK 19.4 (8.0) million are costs for daily operations and the monitoring of the poker network to which Boss Media’s customers are connected.

Depreciations and amortizations amounted to SEK 22.0 (12.3) million.



Financial items amounted to SEK 22.4 (14.4) million.

[Newsflash]

16.August 2006

Trillonario.com and VS Poker select Boss Media's poker network

Boss Media in cooperation with the partner company St Minver Ltd (Gibraltar) has signed agreements covering delivery of poker systems to Trillonario.com (USA) and VS Poker (UK).

Trillonario.com was established as a service provider for players who participate in the large lotteries around the world. Trillonario acts as a messenger and purchases lottery tickets on behalf of customers. Trillionario.com is ranked as one of the largest websites for online sub....ions of lottery tickets. Trillonario.com will market its poker offering in Brazil, Argentina and Chile.

VS Poker is currently an established poker partner to a competing poker network and has now chosen to switch to Boss Media's poker product/network.

Delivery to the above customers is scheduled to occur during the autumn.

[Newsflash]

25.08.2006

Boss Media sells casino system to PokerHeaven.com

Boss Media has signed an agreement with PokerHeaven.com covering delivery of Boss Media's casino software, with delivery scheduled during the autumn.

PokerHeaven.com has already been a significant partner in Boss Media's partner-based poker network for about the past one and half years. The main reason for its success is its the cooperation with the British TV-channel Poker Channel, which each day broadcasts and follows play at specially selected poker tables.

Pokerheaven.com has now decided to also offer casino games to its players. The casino system will be delivered as part of a so-called single-account solution in which casino and poker is integrated into the same player account.

[Newsflash]

29.08.2006

Organizational changes at Boss Media

Roger Laudon has been appointed CTO at Boss Media AB. He succeeds Hans Österberg, who is assuming new duties within the company, with a focus on sales to large and established customers.

Most recently, Roger Laudon, 35, was employed at Flow Systems where he was a consultant specializing in efficient software development. Prior to this, Roger held a number of executive positions at Intentia Research & Development AB.

[Casinonews]

13.09.2006

Strategic agreement - Boss Media supplies the market's first open business system for gaming operators - new business model introduced

Boss Media signed an agreement with St Minver, the leading supplier of gaming services to operators in Europe, for the delivery of the market's first open business system for the management of complete digital gaming operations: Boss Media Management System.

The agreement will result in an entirely new business model, which will entitle Boss Media to receive income from royalties for the use of games from suppliers other than Boss Media.

- The initial license fee amounts to USD 3 million, or approximately SEK 22 million.

- Ongoing royalty remuneration is calculated as part of the total gaming volume handled through the system, independent of the supplier of the gaming products.

- Delivery is scheduled for the beginning of December 2006 and will be successively placed in operation during the first quarter of 2007.

Acknowledgement of the right strategy
"In addition to being a significant transaction, in financial terms, it is also an acknowledgement that we have chosen the right direction - a strategy that allows us to create greater benefits for our customers in their gaming operations, due to total solutions. Furthermore, we are moving to a new level, where we will receive income from royalties when operators use games from other suppliers," says Johan Berg, President at Boss Media.

Open system that creates increased control, enhances efficiency and profitability
The advantages of the Boss Media Management System are obvious. The system facilitates gaming operators having a general system for all players, all gaming products and all digital distribution channels, which will create increased control, enhance efficiency and profitability. The fact that the system is open and can handle gaming products from different suppliers is crucial to be able to offer attractive online gaming venues.

"This will lead to flexibility, which is tremendously valuable to operators. They cannot afford to be locked into inflexible and proprietary systems, with restrictions that prohibit rapid adaptation. To prevent loss of players to competitors, operators must gradually broaden their game offerings and increase availability, which will be greatly facilitated by a single and open general business system," says Johan Berg.

Handles gaming operations for Yahoo!, Virgin and Orange, as well as operates International Poker Network - Europe's largest poker network
With Gibraltar-based St Minver, (www.stminverltd.com), well-known brands that would like to broaden their product portfolios with gaming operations will have access to specially adapted, turn-key online gaming venues. In addition, they will receive necessary player liquidity directly at the start, as a result of pooling. Yahoo! Bingo is one example in which St Minver handles the entire operation, which means that Yahoo! can put all its energy into its core competence: customer care and brand-building. St Minver also operates Europe's largest poker network, International Poker Network, through a system supplied by Boss Media.

Growth places increasing demands on efficiency and flexibility
Player growth in St Minver's gaming network is significant. It resulted in the need for a more efficient system - a stable center that can handle significant player growth and broadening of gaming offerings as well as games from different suppliers.

"For Boss Media, securing an agreement with St Minver is of strategic importance, since they create large benefits for customers. This is especially evident in their growth. Our ambition is to contribute to its continuation," says Johan Berg.

Strengthens St Minver's competitiveness
"This system means that we strengthen our offering to our customers. We guarantee them a stable system that includes decisive tools for direct marketing. As a result, we can attract new players more rapidly, while at the same time ensuring that existing players remain with us," says Gary Shaw, President and part-owner of St Minver.
"With this new system, we can also add the best gaming products in the market, in an easier and simpler manner. This will make our various gaming networks even more attractive and thereby ensure that our customers always have access to world-class gaming venues," says Gary Shaw.

[Casinonews]

02.10.2006

American ban on Internet gambling payment processing in the United States about to become law

On Friday, 29 September, a bill that will ban Internet gambling payment processing in the United States was added to another proposed bill on national security, which most likely soon will be passed in its entirety.

As the bill on banned Internet gambling payment processing services in the United States turns into formal law, Boss Media AB will immediately take action to block American players resident in the United States from accessing any such services and software provided by Boss Media.

A ban on Internet gambling payment processing in the United States will affect Boss Media's net sales and earnings. When Boss Media published its interim report for the period January to June 2006, the company stated that the operating margin (EBIT margin), adjusted for non-recurring items, was expected to be no less than 15 percent for 2006. If the bill prohibiting Internet gambling payment processing in the United States is passed shortly, the operating margin, adjusted for non-recurring items, is expected to be 10 to 15 percent for 2006.

[Newsflash]

18.10.2006

Implementation of Boss Media AB's decision to block US players from accessing its products and services

Due to the enactment of the ban on Internet gambling payment processing in the United States last week, Boss Media AB cannot allow American players to access its products and services.

Boss Media AB has now finalized the implementation of this policy which means that no American players can access gaming software and services provided to gaming operators by Boss Media, and that no American players can deposit funds for online gaming purposes using the payment services of Boss Media AB.


The Group Boss Media AB (publ) is one of the world's leading suppliers of systems for digitally distributed gaming entertainment. Boss Media develops gaming solutions for such distribution channels as personal computers, interactive video terminals and digital TV. Licensees are offered a customized gaming system, an integrated payment system as well as related services. The Boss Media-share is listed on the O-list (Attract 40) of Stockholmsbörsen (Stockholm Stock Exchange). More information about Boss Media is available at www.bossmedia.se.