Melco’s subsidiary Elixir forays into slot machine revenue participation business by entering into a Securities Purchase and Products Participation Agreement with US-listed VendingData Corporation

Elixir Group, a wholly owned subsidiary of Melco International Development Limited (SEHK: 200), announced that it will foray into the highly lucrative slot machine revenue participation business by virtue of entering into a Securities Purchase and Products Participation Agreement (the “Agreement”) with VendingData Corporation (“VDC”, AMEX: VNX).

The Agreement is, in essence, an “earn out” arrangement whereby Elixir will, using its extensive network in Asia, procure slot machine revenue participation arrangements (“revenue participation arrangements”) for VDC in Asian countries such as the Philippines, Vietnam and Cambodia. Instead of earning just a one-off sales margin, such revenue participation agreements will enable VDC to place slot machines in casinos and/or slot parlors and share for not less than 20% of the slot revenue over the useful lives of the machines.

In return for Elixir’s effort, VDC would issue consideration shares to Elixir according to the achievements of certain milestones.

VDC has also committed to having Elixir as its sole supplier of slot machines. Elixir will either manufacture the slot machines itself or source the machines from other slot machine manufacturers.

Mr. Gordon Yuen, CEO of Elixir Group, said, “Revenue participation arrangements are very popular tools for large slot machine manufacturers in the US and Australia to enhance their profitability. Instead of just earning a one-off sales margin, these arrangements allow slot machine manufacturers to participate in a steady stream of revenue generated by the slot machines over their useful lives. Yet such arrangements spare the slot suppliers of the capital outlay that would have to be incurred by casino operators. We are confident in our ability to achieve the stipulated milestones within a reasonably short period of time, thus allowing Elixir to consolidate the results of VDC into the accounts of Elixir and ultimately Melco. I am also extremely pleased that we are strengthening our partnership with VDC which will no doubt supplement Elixir’s marketing prowess in Asia with strong and proven gaming technologies.”

Elixir Gaming unveils innovative products at Global Gaming Expo (G2E) Asia

Elixir Gaming Technologies (Elixir Gaming) recently showcased its latest product offering at the Global Gaming Expo (G2E) Asia on June 13 and 14, 2007 at Level 2, Macau Tower.

This was a milestone event for Elixir Gaming, as its extensive suite of slot machines, table products, electronic games and services was launched to the public. Elixir Gaming's own server-based machine, GameStation, was the highlight of the exhibit. All products was displayed amid an impressive 224-square-metre “high-tech and futuristic” setting that clearly reflects Elixir Gaming's market thrust.

G2E Asia is Elixir Gaming's second major event for 2007. Earlier in the year, the company has participated in Asia's GEM, a premier gaming, entertainment, and leisure expo held in Manila. As an Asian-focused company, Elixir Gaming will continue to actively participate in trade exhibitions and road shows, to indicate its aggressive marketing strategies in the region.

G2E Asia, formerly Asian Gaming Expo, is the premier trade show and conference for the Asian gaming market. This event highlights the remarkable growth in Asian gaming by presenting new products and the latest trends, and establishing networks with qualified buyers and market players.