VANCOUVER, British Columbia, June 15, 2004 (PRIMEZONE) -- CYOP Systems International Inc. (OTCBB:CYOS), the leading provider of online video games and tournaments of skill, is pleased to announce that it has reached an agreement whereby Universal Media Inc. ("Universal Media") will become a Value Added Reseller (VAR) for CYOP.
Universal Media is a full service agency servicing the transportation industry, the traveling public, online companies, and business to consumer companies. The Company specializes in high quality ad placement, direct marketing, branding, and production services for brand marketing and direct response campaigns. Universal Media procures strategic alliances for partnerships, promotions, and advertising on a broad spectrum of media products.
Under the terms of the agreement, Universal Media shall market and sell current and future products for CYOP including channel partnerships, affiliates and licensed users. Universal shall also source out third party game developers for integration into CYOP's licensed CrediPlay Software.
The Company continues with its pro-active policy of seeking out new technologies and maintaining a constant focus on providing quality entertainment by increasing its exposure to interested partners through aggressive sales and marketing approaches. By making use of Value Added Resellers, the Company is able to minimize its expenditures while maximizing new product exposure in the marketplace.
According to DFC Intelligence and the Themis Group, the online gaming industry boasts an anticipated value of $1.4 billion globally this forthcoming year, with $720 million being derived from Asia and $162 million for Europe. This total industry is growing a break-neck pace, and is expected to be valued at $5.5 billion within four years. This growth is being driven in part by the adoption of broadband, and increased accessibility by emerging markets.
CYOP believes that it will be able to capture a small market share of the industry within the next twelve months equating to significant revenues. A market share of one half of one (1/2%) percentage of the gross value of the industry would equate to about $7 million in revenues.
Gross profit margins after direct costs and revenue splits will be in the 20% range. And within four years, the Company feels it is possible to capture a significant percentage of the combined projected market. As an example, 2.0% of the combined projected market equates to gross sales of approximately $110 million.
Patrick Smyth, President of CYOP, commented, "Our goal is to provide a low up-front cost arrangement that allows the Company to generate greater revenue through augmented sales opportunities. And by having Universal Media develop new partnerships with game developers and publishers, we will be able to expand our own product line and boost our competitive advantage by providing our players with greater choices."
About CYOP
CYOP is a developer and provider of online skill-games and services for the online entertainment and gaming industries. CrediPlay, CYOP's licensed application, is an online transaction platform that is based on charging a fee for each game of skill played over the Internet. CYOP's central games portal, www.skillarcade.com, features virtual sports games, puzzles, card games, action games, strategy, driving, racing and adventure games where people play popular skill games against other players and compete in tournaments to win real money prizes.
For more information please visit www.cyopsystems.com.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Exchange Act of 1934 and the provisions of the Private Securities Litigation Reform Act of 1995 and is subject to safe harbor created by these sections. Actual results may differ materially due to a number of risks, including, but not limited to, technological and operational challenges, needs for additional capital, changes in consumer preferences, legal risks associated with Internet gaming and risks of governmental legislation and regulation, risks associated with market acceptance and technological changes, risks associated with dependence on software providers, URL providers, risks relating to international operations, and risks associated with competition. This document is not intended to be and is not an advertisement for any securities of the company.