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First Entertainment To Acquire ONLINE Casinos

DENVER -- First Entertainment Inc. (NASDAQ: FTET) has announced a letter of intent to acquire the assets of ONLINE Casinos Inc. At the completion of the transaction, which is expected to close within 60 days, the assets that will have been acquired consists of a fully licensed operating gaming casino in the Caribbean, along with an Internet gaming license, and the Internet gaming software that controls all aspects of the system.

ONLINE President Joseph Masselli stated, "After having spent significant financial resources to research thoroughly the opportunities in Internet gaming, we are confident that our current approach and systems will establish ONLINE Casinos as a dominant factor in this fast-growing arena."

A.B. Goldberg, president of First Entertainment, stated, "We are very excited with the proposed acquisition of ONLINE Casinos Inc. First Entertainment has explored numerous Internet-related opportunities and believes that Internet gaming, as well as the other ancillary entertainment activities that this brings, will enhance the company's growth significantly."

ONLINE Casinos Inc. will operate through its Caribbean subsidiary. The system has been designed by MultiMedia Direct LLC with the highest degree of integrity for payouts, as well as a secure banking environment for public use.

MultiMedia Direct specializes in Internet technologies, and will provide all Internet services to ONLINE, including site design, game design, game development, on-line banking and network security.

The total value of the transaction is approximately $26 million, including the debt financing and convertible preferred stock.

First Entertainment is a multimedia entertainment company whose holdings include the Comedy Works nightclub in Denver and a Gillette, Wyo., radio station.

In a discussion of the legalities, the company stated that they can reject U.S. players through the registration process, which requires personal information such as a Social Security number and a credit card, he said. "It's going to be operated in the Caribbean, and they're going to make it as difficult as possible for U.S. players to get on," Goldberg said.

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