Alliance Gaming Provides Updates on the Divestiture of its Nevada and Louisiana Route Operations
July 01 2004 - 7:30AM
PR Newswire (US)
Alliance Gaming Provides Updates on the Divestiture of its Nevada
and Louisiana Route Operations LAS VEGAS, July 1
/PRNewswire-FirstCall/ -- Alliance Gaming Corp. (NYSE:AGI) provided
an update today on the planned divestitures of its Nevada route
company, United Coin Machine Company (UCMC), and its Louisiana
route company, Video Services, Inc. (VSI). United Coin Alliance
Gaming announced that it has completed its sale of its 100 percent
interest in UCMC to Montana-based Century Gaming on June 30, 2004.
Under the terms of the amended sale agreement, Alliance Gaming
received approximately $100 million in cash and the assumption by
Century of approximately $5 million in debt, and there will be no
ongoing equity interest by Alliance in UCMC. The agreement also
contains a requirement for the buyer to acquire a certain number of
gaming devices from the Company's Bally Gaming business unit over a
5-year period. Video Services, Inc. The sale of VSI was not
completed on June 30, 2004, as contemplated in a June 30, 2003,
agreement entered into with Gentilly Gaming, LLC. Alliance, through
a wholly owned subsidiary, owns 49 percent of VSI. The purchase
price for 100 percent of the stock of VSI was expected to be
approximately $4 million, of which approximately $1.95 million
would have been paid to Alliance. As a consequence of Gentilly's
decision not to proceed with the transaction, the sale agreement
provides for a 12-month extension of the renewal term of VSI's
current operating agreement with the Fair Grounds Corporation of
New Orleans. Alliance Gaming intends to continue its efforts to
divest this subsidiary, and as such will continue to carry the
asset as a discontinued operation. Alliance Gaming is a diversified
gaming company with headquarters in Las Vegas. The Company is
engaged in the design, manufacture, operation and distribution of
advanced gaming devices and systems worldwide, and operates Rainbow
Casino in Vicksburg, Miss. Additional information about the Company
can be found at http://www.alliancegaming.com/. This news release
may contain "forward-looking" statements within the meaning of the
Securities Act of 1933, as amended, and is subject to the safe
harbor created thereby. Such information involves important risks
and uncertainties that could significantly affect the results in
the future and, accordingly, such results may differ from those
expressed in any forward-looking statements. Future operating
results may be adversely affected as a result of a number of risks
that are detailed from time to time in the company's filings with
the Securities and Exchange Commission. For further information,
please contact: Robert L. Saxton of Alliance Gaming,
+1-702-270-7600. DATASOURCE: Alliance Gaming Corp. CONTACT: Robert
L. Saxton of Alliance Gaming, +1-702-270-7600 Web site:
http://www.alliancegaming.com/
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