Manila, Philippines; 13 December 2010 -- IP E-Game Ventures, Inc. (IP E-Games; PSE: EG), the publicly listed online gaming subsidiary of listed technology conglomerate IPVG Corp. (PSE:IP), has signed a share purchase agreement with ePLDT to purchase the latter’s 75% stake in Digital Paradise Inc. (Digital Paradise). Digital Paradise operates the Netopia brand of Internet Cafes. The Internet Café chain currently has a network of 105 cafes nationwide, 71 of which are company owned and 34 of which are franchised.

Under the agreement, E Games will purchase 97.6 million shares of Digital Paradise representing 75% of the company. Finalization of the purchase is subject to a 45 day due diligence period.

E Games is one of the leading online game publishers in the country, offering a portfolio of online games consisting of Massively Multiplayer Online Role Playing Games or MMORPGs, and casual online games. E Games pioneered the free to play business model, wherein gamers are not required to pay a subscription fee to play online games.  Gamers are given the option of purchasing “in game items” to enhance their gaming experience.  The company sells virtual currency (e Points) that is used to purchase these in-game items. E Games publishes top MMORPGs such as Ran Online, Cabal Online, and recently launched, Dragonica. E Games also has a strategic partnership with GMA7 to publish its casual online games such as Bandmaster, Superstar, and Operation7.

Netopia is the largest chain of Internet Cafes in the Philippines consisting of 71 company-owned and 34 franchised branches. Netopia serves over 1.5 million customers monthly, 80% of which are from ages 16 to 35, and uses high-speed Internet provided by PLDT. With Netopia’s broad network coverage, Netopia has attracted many large corporate customers for its training, recruitment and advertising needs. At the retail side, Netopia has become a popular destination, for both men and women for Internet surfing, Gaming, Digital Printing and Electronic Load needs.

CEO of E Games, Enrique Y. Gonzalez, says, “The Internet Café business is a strategic sector of our company, and with the signing of this agreement, we are one step closer to establishing a strong presence in that sector.  Netopia is a leading chain in the Internet Café industry and we plan on providing additional investment for expansion.”

The purchase of Digital Paradise will give E Games access to a large network of Internet cafes where it can launch, market, and promote its games.  One of E Games’ objectives is to increase utilization at Netopia by channeling more of its 12 million users to Netopia cafes. E Games also believes that it can increase ad spending at the cafes by providing advertising customers with an additional advertising medium. Advertising customers will be able to advertise on-line, in-game, and now through Netopia’s over 4,000 work stations. E Games recognizes the potential synergies in the transaction and is truly excited about the growth prospects of Digital Paradise.


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About IP E Games

IP E-Game Ventures Inc. (IP e-Games) is a publicly listed company in the Philippine Stock Exchange (PSE: EG) which operates the online gaming business of technology conglomerate IPVG Corp. (PSE: IP). IP e-Games is ranked as the leading online games publisher in the Philippines and holds top MMORPG (Massively Multiplayer Online Role Playing Game) titles such as RAN Online, CABAL Online, and Presidential Award recipient Korean game, Granado Espada. Other games include high-fantasy MMORPG Runes of Magic, and Korean adventure games such as Dragonica and Nostale Online. The casual games of IP E-Games are published under X-Play Online Games Inc. (X-Play), a joint venture company between IP E-Games and GMA New Media Inc. (GMA NMI), the digital arm of GMA Network Inc. (PSE: GMA7). X-Play publishes the no.1 online dance game Audition Dance Battle, MMO First person shooter OP7, online rhythm game Bandmaster, and online videoke game Superstar Online.  IP E-Games strategic minority investors include the Philippine Star Group and E-Store Exchange (an affiliate of GMA7). For more information, visit www.e-games.com.ph.

About Digital Paradise, Inc.

Digital Paradise, Inc. (Digital Paradise) operates the Netopia brand of Internet Cafes.  Netopia was founded in 1996 and has since then become the largest chain of Internet Cafes in the Philippines.  It consists of 71 company-owned and 34 franchised branches. Netopia serves over 1.5 million customers monthly, 80% of which are from ages 16 to 35, and uses the Internet service provided by PLDT. For more information, visit www.netopia.ph


Editorial contacts:

Ricardo F. Lagdameo
Chief Investment Officer/Investor Relations
IPVG Corp.
Tel. No. – (02)  976 7484
Email – cary.lagdameo@ipvg.com