LANGHORNE, Pa., Jan. 16, 2003 (PRIMEZONE) -- eGames, Inc. (OTCBB:EGAM), a publisher and developer of Family Friendly(tm), value-priced consumer entertainment PC software games, today announced that it has repaid the entire outstanding term loan balance to Fleet Bank prior to maturity and has redeemed the common stock warrant issued to Fleet Bank in connection with the forbearance agreement entered into on October 31, 2001.
Jerry Klein, President and CEO of eGames, stated, "We believe this accomplishment marks a very important milestone in our turn-around plan that we initiated a year ago. Over the past year, we have made significant progress in strengthening our balance sheet by: converting accounts receivable balances and certain slow-moving inventory stock into cash, reducing trade debt, eliminating bank debt, and achieving operational profitability as a result of strengthening our gross profit margins and reducing operating costs. Accordingly, we intend to continue financing the majority of our anticipated business growth through funds generated from operations, as we have done over the past fifteen months. However, now that we have a much stronger balance sheet, we may at some time decide to seek a banking relationship that would include a credit facility in order to more effectively manage normal fluctuations in working capital requirements."
Mr. Klein further commented, "We must remain disciplined and continue to focus our business plan on serving our core value-priced consumer and the retailers servicing them and to gradually increase our product offering to include titles that appeal to the higher-end game player looking for a high-value gaming experience at an affordable price."
About the Company:
eGames, Inc., headquartered in Langhorne, PA, develops, publishes and markets a diversified line of Family Friendly(tm), value-priced consumer entertainment PC software games. The Company promotes the eGames(tm), Game Master Series(tm), and Outerbound(tm) brands in order to generate customer loyalty, encourage repeat purchases and differentiate eGames software products to retailers and consumers. eGames -- Where the "e" is for Everybody! Additional information regarding eGames, Inc. can be found on the Company's Web site at www.egames.com.
Forward-Looking Statement Safe Harbor:
This press release contains certain forward-looking statements, including without limitation, statements regarding the Company's intention to continue to finance the majority of its anticipated business growth through funds generated from operations; the potential for the Company to seek a future banking relationship to include a credit facility in order to more effectively manage normal fluctuations in working capital requirements; and the Company's plan to gradually increase its product offering to include more higher-priced PC software games. The actual results achieved by the Company and the factors that could cause actual results to differ materially from those indicated by the forward-looking statements are in many ways beyond the Company's control. The Company cautions readers that the following important factors, among others, could cause the Company's actual results to differ materially from those expressed in this press release: the market acceptance and successful sell-through results for the Company's products at retail stores, particularly new titles that are priced higher than those that the Company has historically sold; the market acceptance of increased pricing of the Company's products; the amount of unsold product that is returned to the Company by retail stores; the Company's ability to accurately predict the amount of product returns that will occur and the adequacy of the reserves established for such returns; the success of the Company's distribution strategy, including its ability to enter into new distribution and direct sales relationships on commercially acceptable terms; the continued allocation of adequate shelf space for the Company's products in major retail chain stores; the Company's ability to collect outstanding accounts receivable and establish adequate reserves for uncollectible receivables; the ability to deliver products in response to orders within a commercially acceptable time frame; downward pricing pressure; fluctuating costs of developing, producing and marketing the Company's products; the Company's ability to license or develop quality content for its products; consumers' continued demand for value-priced software; increased competition in the value-priced software category; and various other factors, many of which are beyond the Company's control. Risks and uncertainties that may affect the Company's future results and performance also include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2002 and Quarterly Report on Form 10-QSB for the quarter ended September 30, 2002 filed with the Securities and Exchange Commission.