In connection with the sale, Freightmaster Services will act as the exclusive UK product fulfillment house for Take-Two's products for the next three years. Freightmaster Services will also continue to provide fulfillment and distribution services for other third-party console publishers.
As a result of the transaction, Take-Two expects to record a non-operating gain in its fiscal third quarter ended July 31, 2001 of approximately $700,000 net of tax, or $0.02 per fully diluted share. During the past 12 months U.K Jack of All Games recorded revenues of approximately $5 million and generated a net loss.
"This transaction is representative of management's continuing focus on the expansion of Take-Two's core publishing business in Europe," said Kelly Sumner, Chief Executive Officer of Take-Two Interactive Software. "The utilization of Freightmaster's services and expertise will provide us a cost effective manner to maximize our fulfillment capabilities in the U.K. as our product range continues to expand."
"We are delighted to have been able to join with the management of U.K. Jack of All Games in completing this exciting acquisition," stated Jim Templeton, Chairman of Freightmaster Services. "We look forward to providing an exceptional service to the industry in the future. We wish to assure both old and new customers that we, together with U.K. Jack of All Games management, are fully committed and dedicated to this goal."
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is an integrated global developer, marketer, distributor, and publisher of interactive entertainment software games and accessories for the PC, PlayStation, Nintendo 64, Nintendo Game Boy Color, Nintendo GAMECUBE, Nintendo Game Boy Advance, PlayStation(R)2 and the Xbox(TM). The Company publishes and develops products through various wholly owned subsidiaries including: Rockstar Games, GodGames, TalonSoft, Joytech, DMA Design, PopTop, Global Star and under the Take-Two brand name. The Company maintains sales and marketing offices in Cincinnati, New York, Toronto, London, Paris, Munich, Vienna, Copenhagen, Milan, Sydney and Auckland. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com.
About Freightmaster Services Limited
Established as a company since 1906, with its roots going back into the early 19th century, Freightmaster Services Limited are a leader in the field of warehousing, distribution and logistics. Freightmaster Services Limited is a national and international inter-modal distributor, specializing in the distribution of motorized products.