Century Industries, Inc., PHLX - CII.B, Announces It Has Signed a Memorandum of Understanding with Interactive Gaming & Communications, Inc., SBET, Originating a Joint Effort To Complete and Market ToteMaster, IGC's Proprietary Software Designed to Bring Simulcast Thoroughbred Racing to the Internet

Business Wire, Feb 8, 1999

WASHINGTON--(BUSINESS WIRE)--Feb. 8, 1999--Century Industries, Inc. (PHLX CII.A and CII.B and the Class A also trades on the NASDAQ OTC:BB as CNTI) announced today it has signed a Memorandum of Understanding to create a Joint Effort designed to change its direction to participate in the Internet Information Technologies Industry with Interactive Gaming & Communications, Inc. (IGC) (NASDAQ OTC:BB -SBET).

IGC, founded in 1994, owns and operates the World Wide Web sites www.gamblenet.com and www.playforfun.com. IGC also developed the "LiveAction" Casino proprietary interactive casino gaming software utilized on its playforfun.com website, which consists of 90 web pages.

IGC's Gamblenet.com, a web advertising driven search engine, is an Internet portal site displaying gambling related information consisting of 300 web pages, and will be the premier Internet reference site for worldwide casino and gambling information.

IGC has several partnership arrangements with publishers, software suppliers and game vendors including Digital River (NASDAQ: DRIV) and Amazon.com (NASD: AMZNM) in which IGC will share in the profits from the e-commerce sale of any of these articles through its sites.

IGC's www.playforfun.com in conjunction with corporate sponsors, will be giving away hundreds of thousands of dollars in cash and prizes to players that win prize related casino games or sports book.

The Memorandum is focused on Century and IGC jointly capitalizing and owning Internet Online Productions, Inc. (IOP), to finish developing and to market IGC's proprietary "StockSleuth" stock market information search engine site, providing a comprehensive analysis of any trading security, including its major institutional investors and its short and long term prospects, and, the completion of IGC's "ToteMaster", Internet Thoroughbred Racing interactive software to be licensed to various race track members of the Thoroughbred Racing Association, to carry simulcast thoroughbred racing over the Internet.

There are 117 race tracks in North America alone which handle 17.5 billion dollars annually, with revenues which exceed 4 billion dollars. Each potential installation represents approximately $1,500,000, and maintenance and license royalties. IOP will utilize IGC's LiveAction platform to complete ToteMaster.

The profits derived from this joint effort through IOP would be shared equally on a 50/50 basis by Century and IGC. IGC also has additional Internet products in development which it will contribute to IOP.

IGC has already licensed its "Live Action" casino gaming software to three online gaming casinos, and is projecting $3,000,000 in royalties from these licenses over the next 3 years. Similar software has been developed by companies such as Playstar (OTC:BB PSCKF), Starnet Communications International, Inc. OTC:BB: SNMM), Atlantic International Entertainment, Ltd. (OTC:BB AIEE).

IGC has 10 additional websites under construction through its programming subsidiary, Intersphere Communications (www.Intersphere.com). Intersphere has developed websites for Metro-Goldwyn-Mayer, Inc. (NASDAQ: MGM), and Comcast Communications (NASDAQ: CMCSK), among others.

Century and IGC will operate their joint effort Internet Online Productions, Inc. from Intersphere's head quarters in Plymouth Meeting, Pa., where programming and marketing staff are already in place.

Both companies plan to exchange shares of their respective stocks with IOP as a basis for funding the development completion and marketing costs. Intersphere will contribute its StockSleuth and ToteMaster Thoroughbred Racing Working Models to IOP.

The Boards of Century and IGC have entered into active discussions to consider further merger and acquisition possibilities. One scenario under discussion is the acquisition of IGC by Century; another scenario is a statutory merger between the two companies.

A further business combination will require the study of relevant taxation questions, the shares outstanding of both entities, and the market effects of such a combination. Both partners want to explore the best value for their respective shareholders.

The Directors of both entities agree that IOP has a viable, exciting go forward business plan in the interactive gaming industry, due to IGC's head start in gaming design and programming capacity, and Century's existing capital and revenues.

A merger would result in SBET becoming listed on the PHLX, which has merged with the AMEX. Century has over 160 employees in its subsidiaries, in sales, steel fabrication and insurance claims administration.

Ted Schwartzbeck, Century's President stated "This Joint Effort through IOP is the opportunity for us to enter the technology arena, which is what we have been exploring for some time. IOP is an exciting project."

Michael Simone, IGC's President, stated "This project will allow Intersphere to speed up its completion schedule through IOP, by providing more programming and marketing personnel. A partner with Century's resources will help us remain on the cutting edge."