Distribution Policy (Revised): Mobile Phone Games

Distribution Policy revised due to rising interest in Elite's rapidly growing portfolio of mobile phone games.

Date: December 2005

As a consequence of the rising interest in its rapidly growing portfolio of mobile phone games Elite has revised its policy with respect to their distribution. Speaking for the company co-founder Steve Wilcox said: \"With regard to Revenue Sharing agreements, we will consider entering into such agreements where: - they are direct with an operator - they are direct with a major portal - they are direct with an exclusive supplier to an operator / major portal.\" \"We will also consider entering into Distribution Agreements in cases where a suitable \'Advance\' (against Revenue Share) or \'Minimum Guaranteed Payment\' is offered. In all other cases we will continue to solicit distibution partnerships directly.\" \"We have found it necessary to revise and publish this policy because with such a large number of content aggregators / publishers operating in the sector we need to protect our games properties from the threat of \'devaluation\' and ensure that our distribution partners enjoy a commensurate return from their investment in them. We have also determined that: - the basis for agreements with operators et al will be a revenue-share of not less than 65% or payment-per-download of not less than Euro1.05 (where the end user price is Euro3.00) or Euro1.75 (where the end user price is Euro5.00) and that - the method of calculation of \'Advance\' (against Revenue Share) or \'Minimum Guaranteed Payment\' payable by distribution partners will be 90 days forecast revenue at 65% share or 90 days forecast downloads at Euro1.05 / Euro1.75, whichever is the greater. Operators, major portals and content aggregators / publishers wishing to discuss terms for distribution agreements for Elite\'s growing portfolio of of mobile phone games are invited to contact the company by email (to: sales@elite-systems.co.uk) or by any of the other available means.

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