London, UK (PRWEB) July 10, 2008
VEGA PROMOTIONAL SYSTEMS, INC. (VGPR.PK) today announced it has entered into an agreement to acquire unique, proprietary software for online gaming. Terms of the agreement were not disclosed pending completion of the transaction.
The unique, proprietary platform supports Massively Multiplayer Online Games (MMOG). This platform has been proven to support a user base of over 80,000 online clients and 7,000 unique logins per day.
One segment of the online gaming industry that has exploded in recent years is online poker. Vega will license the proprietary software to online poker websites that will pay a reoccurring licensing fee to the Company. The unique software allows users from each licensed website to play in a global, online community against players from other licensed websites throughout the world.
Michael Herron, CEO of Vega Promotional Systems, Inc. stated, "We have executed the Purchase Agreement, made a substantial payment toward the purchase price, and look forward to completing the transaction as quickly as possible. This is a major acquisition for our company and will provide us with the ability to expand our business throughout the world and create substantial, ongoing revenue for the Company. The strategy that we believe will make Vega successful in the online gaming market is to recognize that online gaming is a service, not a product. We will have to satisfy our customers not only at the time of purchase, but over and over again. This is distinctly different than developing console based games and provides a different revenue model, one of constant, reoccurring, predictable and stable growth."
The online gaming industry is appealing because of the enormous growth potential. DFC Intelligence has forecast that the worldwide online game market is expected to grow from $3.4 billion in 2005 to more than $13 billion in 2011.
The driver behind this shift is the growing popularity of high-speed Internet connections in North America, Europe, and Asia where broadband penetration rates already range from 50 percent to about 90 percent of households. The ubiquity of always-on, high-speed Internet access is transforming cyberspace from a utility-driven model in which people connect, communicate, and transact, to a leisure-driven model in which permanently connected users hang out, socialize, and play.
Vega is committed to developing intellectual property and expertise in the MMOG market as opposed to the console market and will continue to acquire and partner with other game developers to develop strategies that will allow further distribution of these games and services in the emerging international markets.
Vega recently announced the launch of the "Poker Tour of the Americas" (PTA), a multi-city series of poker tournaments featuring the top professional poker players in the world and plans to license the software to an online gaming company to develop a "Poker Tour of the Americas" online poker site.
"We are extremely excited about the opportunities this will provide our company," stated Herron. "The online game development market is still in its infancy, and there is an opportunity to consolidate many of the junior game developers within this market segment. This transaction will significantly impact the rollout of our entire Business Plan and we look forward to rollouts in Europe, Asia, and Latin America. We believe that by providing software to the online poker industry, then utilizing the marketing prowess of our company, we will be in a position to become a significant player in the online gaming industry. Online poker has taken off all over the world and by being in a position to provide our unique online software to poker websites around the world, we will be able to capitalize on the industry's tremendous growth and global expansion".
About Vega Promotional Systems, Inc.
Vega Promotional Systems, Inc. is a marketing company that is seeking complementary business opportunities that will allow it to increase its shareholder value and extend the brands of its clients throughout the world. The Company's stock trades under the symbol VGPR on the pink sheets.
Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words "forecast," "project," "intend," "expect" "should," "would," and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.