WMS Further Expands Interactive Gaming Capabilities With Acquisition Of Phantom EFX

WMS Industries Inc. (NYSE:WMS), a global leader in the design, manufacture and distribution of games, gaming content and gaming machines, announced today that it has acquired Genesis Communications Inc., d/b/a Phantom EFX, a leading publisher and developer of interactive casino and slot-based games for social, casual and mobile gaming entertainment. The tuck-in acquisition of privately held Phantom EFX further expands WMS capabilities in online content development and distribution across the rapidly expanding social, casual and mobile channels. Financial terms of the transaction were not disclosed.

Orrin J. Edidin, President of WMS, commented, “For more than a year, WMS has collaborated with Phantom EFX to successfully create, develop and launch entertainment slot games for digital, mobile and retail platforms. Over this time we have established a close relationship with the entire Phantom EFX team and recognize the value of their entrepreneurial passion, unique culture and creative abilities that have positioned WMS as a leading publisher of casino games for the retail channel and broadened our capabilities to offer an impressive range of social and mobile executions. The experience and talent of the Phantom EFX team enables them to quickly and efficiently design and develop high-quality slot games for online and casual applications. We are excited to welcome the Phantom EFX team members to the WMS family as together we will focus on creating the industry’s most creative and comprehensive suite of interactive products and capabilities.”

Aaron Schurman, CEO of Phantom EFX, said, “With similar creative philosophies and innovative cultures, it is exciting to imagine the broad opportunities that WMS and Phantom will address with unique content and solutions. The combination of our entrepreneurial creativity and WMS’ culture of innovation establishes a framework for tremendous potential and success going forward. Since our first foray into the casual entertainment gaming world in 2000, we’ve learned to expertly create interactive slot game experiences that truly engage online and casual players. The valuable partnership developed through our work with WMS over the past year has been extremely fruitful, providing us with a strong bond that will only strengthen as we become a single team.”

Edidin added, “Global gaming markets are rapidly moving toward content convergence and multi-channel distribution as consumers demand ready access to their favorite content across multiple platforms. With our success and experience in online and interactive gaming – through our award-winning UK-based JackpotParty.com online casino and its broad scale application with customers as was demonstrated through our recent agreement with Groupe Partouche for a WMS-hosted Belgium online casino; our capabilities and experience for integrating and distributing online gaming content through the Jadestone team; the unique and player-appealing gaming features and capabilities provided through our Player’s Life® Web Services; our popular Lucky Cruise™ social casino found on Facebook; and our classic slot content for mobile and other casual play users – WMS has established a successful online presence and a proven record for responsible gaming and compliance in regulated markets. Our more-than-60-year legacy of creating great games, which we’ve now proven on multiple online, social, casual and mobile platforms, positions WMS as a premier partner for casinos and gaming companies seeking a proven and integrated strategic approach. By creating a full complement of interactive solutions, whether for online wagering, social, mobile or casual gaming, we are focused on supporting our customers as they engage their player base beyond the four walls of the casino. Customers can count on WMS to evolve with them and help them move forward with confidence to stay connected to their players, wherever and however players find it most convenient to seek out gaming entertainment today and in the future.”

About Phantom EFX

Founded in 1998, and headquartered in Cedar Falls, IA, Phantom EFX is a leading multi-platform developer and publisher of interactive entertainment software that delivers engaging, ultra-realistic experiences to consumers. With a talented and experienced team focused on producing titles that are fresh and innovative, entertaining and graphically superior, Phantom EFX has an extensive array of products released on a broad range of platforms, including PC and tablet, social gaming (Facebook), iOS and Android mobile, web-based and console platforms and sold through an expanding distribution system that includes retail stores, online e-commerce and in-game digital delivery (both downloadable and instant play). For more information about Phantom EFX and its products, please go to www.phantomefx.com.

About WMS

WMS serves the gaming industry worldwide by designing, manufacturing and marketing games, video and mechanical reel-spinning gaming machines, video lottery terminals and in gaming operations, which places leased participation gaming machines in legal gaming venues. The Company’s online iGaming business develops and markets products, services and end-to-end solutions that address global online wagering and casual gaming opportunities. WMS is proactively addressing the next stage of casino gaming floor evolution with its WAGE-NET® networked gaming solution, a suite of systems technologies and applications designed to increase customers’ revenue generating capabilities and operational efficiency. More information on WMS can be found at www.wms.com or visit the Company on Facebook, Twitter or YouTube.

This press release contains forward-looking statements concerning our future business performance, strategy, outlook, plans, products and liquidity. Forward-looking statements may be typically identified by such words as “may,” “will,” “should,” “expect,” “anticipate,” “plan,” “likely,” “believe,” “estimate,” “project,” and “intend,” among others. These forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. Although we believe that the expectations reflected in our forward-looking statements are reasonable, any or all of our forward-looking statements may prove to be incorrect. Consequently, no forward-looking statements may be guaranteed. Factors which could cause our actual results to differ from expectations include (1) delay or refusal by regulators to approve our new gaming platforms, cabinet designs, game themes and related hardware and software; (2) changes in regulations or regulatory interpretations that may adversely affect existing product placements or future placements; (3) an inability to introduce in a timely manner new games and gaming machines that achieve and maintain market acceptance; (4) a decrease in the desire of casino customers to upgrade gaming machines or allot floor space to leased or participation games, resulting in reduced demand for our products; (5) a reduction in capital spending or interruption in payments by casino customers associated with business weakness or economic uncertainty that adversely affects our customers' ability to make purchases or pay; (6) a greater-than-expected demand for operating leases by customers over outright product sales or sales financing leases that shift revenue recognition from a single period to the term of such operating leases; (7) future costs relating to our planned restructuring and other charges that may be higher than currently estimated, including additional charges related to actions at a later time not presently contemplated; (8) ability to realize in full, or part, the anticipated savings and expense reductions from restructuring and lower staffing; (9) adverse affects on product development, innovation and the ability to retain and attract key personnel following the restructuring and reorganization actions; (10) a reduction in play levels of our participation games by casino patrons, whether due to economic conditions or increased placements of competitive product; (11) inability of suppliers of key components to timely meet our requirements to fulfill customer orders; (12) increased pricing or promotional competitive activity that adversely affects our average selling price or product revenues; (13) a failure to obtain and maintain our gaming licenses and regulatory approvals; (14) failure of customers or players to adapt to the new technologies that we introduce in new product concepts; (15) a software anomaly or fraudulent manipulation of our gaming machines and software; (16) a failure to obtain the right to use or an inability to adapt to rapid development of new technologies; (17) an infringement claim seeking to restrict our use of material technologies; (18) risks of doing business in international markets, including political and economic instability, terrorist activity and foreign currency fluctuations; and (19) the unfavorable outcome of any legal proceedings in which we may be involved from time to time. These factors and other factors that could cause actual results to differ from expectations are more fully described under “Item 1. Business”, “Item 1A. Risk Factors” and “Legal Proceedings” in our Annual Report on Form 10-K for the year ended June 30, 2011, and our more recent reports filed with the U.S. Securities and Exchange Commission.

Copyright Business Wire 2010

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