PANAMA CITY, PANAMA -- (Marketwire) -- 08/18/08 -- Competitive Games International, Inc.(PINKSHEETS: CGMI), an innovative and interactive media company (the"Company"), today announced that the Company has entered into a Letter ofIntent with respect to a proposal submitted by Sports Network Fantasy Ltd.,that outlines a proposed tender offer to acquire a majority position ofoutstanding shares of the Company.Sports Network Fantasy Ltd. currently owns and operatesSportsBookFantasy.com, a burgeoning community network for fantasy sports.Sports Network Fantasy Ltd. is making plans to expand into the Casual Gamesmarket and other online games venues as it anticipates and prepares forexpected congressional changes to gaming laws in the US. The Company hasearned a reputation for having an industry leading customer service programand technology platform that includes software fully supporting real sportand fantasy sport wagering.
"The combination of these two established companies will be verycomplementary given the respective brand portfolios and the demographics inwhich they predominantly operate," said Sports Network Fantasy Ltd.President and CEO Eric Nguyen. "Additionally, there will be a number ofimportant benefits for Competitive Games in terms of capital availability,profitability and an expanded user base. This consolidation makes both goodstrategic and financial sense and is well timed, particularly as the gaminglaws in the US are under review and the industry's competitive dynamicscontinue to intensify."
The proposal is subject to, among other things, the execution of adefinitive agreement, approval by a committee of the Company's directorsand by a majority of the Company's shareholders. The agreement willgenerally provide for a first-step tender offer for a majority shareposition of the Company by Sports Network Fantasy Ltd. It is contemplatedthat the tender offer, if consummated, will be followed by a merger of theacquisition entity with and into Sports Network Fantasy Ltd. The proposedtransaction is also subject to the satisfactory completion of a duediligence review by the Company of the business, financial and legalaffairs of Sports Network Fantasy Ltd., and receipt of necessary consentsand approvals of regulatory agencies and third parties.
The CEO of the Company, Julio Collado, stated, "Sports Network Fantasy Ltd.tender offer is exciting for both companies because of the synergisticopportunities it provides. Sports Network Fantasy Ltd. is an establishedand recognizable name in the industry. The acquisition will immediatelyexpose Competitive Games to a new demographic, and increase traffic flowand corresponding business opportunities. The Casual Games divisioncoupled with Competitive Games' new social networking capabilities would bea great addition to Sports Network Fantasy Ltd. current sports interests."
About Sports Network Fantasy Ltd.:
SportsBookFantasy.com is a growing fantasy sports network. The Companyprovides true expertise and business intelligence to its clients. SportsNetwork Fantasy Ltd. is known for its reliable software and dedication tocustomer service. The Company has proved it can provide reliable, practicaland top-quality software solutions for all fantasy sports venues. For moreinformation, please visit www.sportsbookfantasy.com.
About Competitive Games:
Competitive Games International, Inc. is an innovative and interactivemedia company that has been successfully developing all aspects of a newlyevolving and dynamic business model within the Skill Games and SocialNetworking industries. For more information about the company please visitwww.competitivegames.com, www.cgmi-competitivegames.com, andhttp://www.equityperformancegroup.com/clients_cgmi.php.
Forward-Looking Statements
This press release contains certain statements which are not historical orcurrent fact and constitute forward-looking statements within the meaningof such term in Section 27A of the Securities Act of 1933 and Section 21Eof the Securities Exchange Act of 1934. Such forward-looking statementsinvolve known and unknown risks, uncertainties and other factors that couldcause the actual financial or operating results of the Company to bematerially different from the historical results or from any future resultsexpressed or implied by such forward-looking statements. In addition tostatements which explicitly describe such risks and uncertainties, readersare urged to consider statements labeled with the terms may, will,potential, opportunity, belies, belier, expects, intends, estimates,anticipates or plans to be uncertain and forward-looking. Theforward-looking statements contained herein are also subject generally toother risks and uncertainties that are described from time to time in theCompany's reports. Factors which could cause actual results to differmaterially from those estimated by the Company include, but are not limitedto, government regulation, managing and maintaining growth, the effect ofadverse publicity, litigation, competition and other factors which may beidentified from time to time in the Company's public announcements andfilings. Except historical matter contained herein, matters discussed inthis news release are forward-looking statements and are made pursuant tothe safe harbor provision of the Private Securities Litigation Reform Actof 1995. These forward-looking statements reflect assumptions and involverisks and uncertainties, which may affect the Company's business andprospects and cause actual results to differ materially from theseforward-looking statements.
For More Information Contact:
Investor Contact:
Gary Geraci
Equity Performance Group
617-242-1025
gary@equityperfgp.com
www.equityperformancegroup.com
Corporate Offices:
World Trade Center, 1 - Commercial Area
53 Marbella Street
Panama, Republic of Panama
www.cgmi-competitivegames.com