LANGHORNE, Pa., Sept. 19, 2003 (PRIMEZONE) -- eGames, Inc. (OTCBB:EGAM), a publisher of Family Friendly(tm), value-priced consumer entertainment PC software games, today announced it has established a new banking relationship with Hudson United Bank ("HUB"), which will permit the Company to borrow up to $500,000, subject to certain restrictions, for working capital and short-term borrowing requirements.
Amounts outstanding under this credit facility will be charged interest at one-half of one percent above HUB's current prime rate and interest will be due monthly. Access to these funds will be limited to the lesser of $500,000 or seventy-five percent of qualified accounts receivable. This credit facility, which matures on December 1, 2004, is secured by all of the Company's assets and requires the Company, among other things, to maintain the following financial covenants to be tested quarterly: a total liabilities to tangible net worth ratio of 1.25 to 1.00 and a minimum tangible net worth requirement of $1.5 million.
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!(r) Additional information regarding eGames, Inc. can be found on the Company's Web site at www.egames.com.