Press release: 1991-11-05: ACCLAIM TO ENTER SEGA MARKET; ANNOUNCES PLANS FOR PUBLIC OFFERING

This is an unaltered copy of a press release, for use as a primary source on Sega Retro. Please do not edit the contents below. Language: English third-party Original source: The Free Library

ACCLAIM TO ENTER SEGA MARKET; ANNOUNCES PLANS FOR PUBLIC OFFERING

OYSTER BAY, N.Y., Nov. 5 /PRNewswire/ -- Acclaim Entertainment, Inc. (NASDAQ: AKLM) announced today that it has reached an agreement in principle with Sega of America, Inc., whereby Acclaim will market and distribute software for Sega's 16-bit Genesis and portable Game Gear hardware systems.

"As a multinational, multiformat software company, our move to publish Sega product is a natural evolution," said Gregory Fischbach, chairman and chief executive officer of Acclaim.  "With more than 4 million Genesis hardware systems worldwide and an installed base approaching 2 million units in the U.S. alone, Sega represents an exciting and viable segment of the interactive entertainment market."

Acclaim's first Sega products will be unveiled at the forthcoming January Consumer Electronics Show in Las Vegas, Nev., and company executives say Acclaim expects to bring its first Sega Genesis and Game Gear titles to market this spring.

"Acclaim has long been recognized as an industry leader," said Tom Kalinske, chief executive officer of Sega of America, Inc.  "We are extremely pleased to have Acclaim as a Sega licensee and look forward to a positive and mutually beneficial working relationship."

Acclaim executives also announced that the company plans to file a registration statement with the Securities and Exchange Commission covering an underwritten public offering of 4 million shares of common stock, to be sold by the company.

The offering will be effected to reduce short-term indebtedness and increase working capital in support of Acclaim's expanding operations, including its Sega market entry, increased domestic manufacturing, and the expansion of operations in Europe.

A registration statement relating to these securities will be filed with the Securities and Exchange Commission and has not yet become effective.  The offering will be made only by the means of the prospectus included in the registration statement.  The common stock may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.  This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Acclaim Entertainment, Inc., with offices in Canada, Germany, Japan and the United Kingdom, is a leading worldwide publisher, marketer, manufacturer and distributor of interactive software and accessories under the Acclaim and LJN labels.

-0-        11/5/91
/CONTACT:  Robert Holmes and Allyne Mills of Acclaim Entertainment, 516-922-2400/
(AKLM) CO:  Acclaim Entertainment, Inc.; Sega of America, Inc. ST:  New York IN:  CPR SU:  OFR CK-KW -- NY078 -- 1433 11/05/91 17:26 EST

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