Press release: 1997-08-18: GAMEWORKS SCORES $76 MILLION IN PRIVATE CAPITAL PRIMARILY FROM INSTITUTIONAL INVESTORS

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 Original source: GameWorks (archived)

UNIVERSAL CITY, CA., August 18, 1997 - In a significant demonstration of its burgeoning success, Sega GameWorks , the interactive entertainment venture backed by DreamWorks, Universal Studios and Sega, today announced it has raised approximately $76 million in a private placement of preferred stock to institutional and other sophisticated investors. The company plans to use the raised capital to finance a portion of the company's capital expenditures for the opening of new GameWorksTM, to fund ongoing operations and to meet working capital requirements. Donaldson, Lufkin & Jenrette Securities Corporation served as placement agent for the offering.

"We are delighted by the overwhelming interest in GameWorks from the investors and community," said Skip Paul, chairman and CEO and Michael Montgomery, president and COO of Sega GameWorks. "The success of the first three GameWorks locations and the tremendous enthusiasm demonstrated by investors confirms that the GameWorks concept is universal in its appeal and has unlimited future potential."

GameWorks, which offers people the best and latest technology, games and social interaction in a unique club environment, has been visited by nearly two million guests since opening premiere locations in Seattle (March 1997), Las Vegas (May 1997) and Ontario, California (July 1997). Locations slated to open this year include Tempe, Arizona and Grapevine (near Dallas), Texas.

GameWorks locations offer different "zones" with various games and experiences: the Loading Dock, a competitive zone where guests can put the newest games to the test; the Arena, a high-energy area that features GameWorks signature games and multi-player games and the Loft, a relaxing environment offering a variety of classic video games, traditional games and Internet activities, as well as a restaurant and bar within a club setting.

GameWorks is the main business of Sega GameWorks L.L.C. Other Sega GameWorks activities include Sega CityTM and Game Operations, which owns and operates numerous arcade and Sega City locations, and Game Sales, the exclusive distributor of Sega arcade games for North and South America. The managing members of Sega GameWorks are wholly owned subsidiaries of Sega Enterprises, DreamWorks SKG and Universal Studios, Inc. Universal Studios, Inc. is a unit of The Seagram Company Ltd., a global beverage and entertainment company.

Additional information on GameWorks is available via the Internet at www.gameworks.com.