AIM Admission

Bright Things plc 30 April 2004 30 April 2004 Bright Things plc ('Bright Things' or the 'Company') announces admission of its ordinary shares to trading on the Alternative Investment Market Placing • Admission to the Alternative Investment Market • Fundraising of £4.5 million of new money to assist in: - the further development of Bright Thing's prototype interactive educational children's console, into commercial production; - the development of a range of interactive DVD software for the console; and - securing licences, on which the software will be based, from established brands in the children's market place. • Total of 5.0 million ordinary shares of 10p per share have been placed at the Placing Price of 90p by Corporate Synergy Plc and Kelton International Limited • Expected market capitalisation on admission of £13.5 million • First dealings in the shares are expected to take place today, 30 April 2004 • Corporate Synergy Plc acted as nominated adviser, joint financial adviser and broker and Kelton International Limited acted as joint financial adviser Bright Things • Bright Things has developed and owns the intellectual property for a new educational games platform aimed at the pre-school market. Patent applications have been submitted in the US and Europe • The Company intends to establish the console as a leading platform within the early learning interactive console sector using the functionality of the DVD and products based on popular characters aimed at pre-school children. Discussions are on-going with major character licence holders • A prototype has been developed. The next stage is to begin the design and manufacture of the final product • The largest sector of the UK toys and games market, infant and pre-school toys, has registered above average growth between 2000 and 2002 (Source: Mintel, Consoles and Games, Market Intelligence, July 2003) • Bright Things has a proven management team, all of whom have considerable experience in the interactive games industry, several of whom have previously worked together at Eidos • The Company has a business model that has already been proven in the video games market • It is intended that the product will represent an initial revenue stream for the Company, with a soft launch planned between Christmas 2004 and Easter 2005 Ian Livingstone, non-executive Chairman, commented: 'We are delighted with the response to the share placing and the endorsement it represents for Bright Things and its prospects. We believe that our product is a groundbreaking invention. Admission to AIM will now enable us to take the technology to the next stage and begin to realise its potential in an attractive growth market.' Dominic Wheatley, Chief Executive Officer, commented: 'Every parent of young children has witnessed a child's frustration at his inability to use the games platforms currently available. Our new educational console addresses this problem by combining the accessibility of the DVD with the power of characters popular with pre-school children. Our AIM flotation represents a new and exciting step for all the team at Bright Things.' Enquires: Corporate Synergy Plc Justin Lewis 020 7626 2244 Brunswick Jonathan Glass 020 7404 5959 Kate Holgate Mark Antelme Notes for Editors THE BUSINESS Bright Entertainment was formed in June 2002 by Dominic Wheatley and John Kavanagh, the inventor of the technology, to develop and exploit the prototype interactive educational children's console. Bright Entertainment has been predominantly funded to-date by Dominic Wheatley. Bright Things is a newly formed holding company for the Group. Since its formation Bright Entertainment has built a management team, developed a demonstration model and produced demonstration software. The Group has applied for patents in the US and Europe and is in discussions with major character licence holders. The Group will initially have three key aspects to its business: • the development and manufacture of the console; • the licensing of characters that will form the basis of the games; and • the development of games to be played on the console. So far as possible the Group will outsource the design and manufacture of the hardware and instruct third party games developers to create the games. The principal role of the Group will therefore be the ownership of the Intellectual Property relating to the system and the marketing and distribution of the system. THE MARKET The UK consoles and games market totalled £1.86 billion in 2002. This excludes the video and computer games market worth £2.05 billion and sales of children's' video and DVD. The largest sector of the UK consoles and games market, infant and pre-school consoles, has registered above average growth between 2000 and 2002. Fuelling this market is the effect of the growing amount of money being spent on children at this age. The result is that many consoles and games bought for the infant sector are increasingly more sophisticated than was the case a decade ago, leading to more expensive purchases generally. The last decade has seen the expansion and development of the video and computer games market. In the opinion of the Directors, this market is predominantly aimed at teenagers and young adults. The Group has developed a platform that is targeted at the pre-school market. The Directors believe that the pre-school market offers a significant business opportunity for the Group. The Directors believe parents are looking for products that provide both enjoyment and education for their children. The current games platforms are unsuitable as they are generally too complicated to be operated by young children and often have inappropriate content. The Directors believe that the Group has the opportunity to establish the product as a leading platform within the early learning interactive console sector. Products based on popular characters aimed at pre-school children are an established route into this market. The Group intends to develop interactive educational entertainment DVDs for the platform, harnessing the power of these children's brands. DIRECTORS Ian Livingstone, aged 54, Non-Executive Chairman, has been in the interactive games industry for over 25 years. In 1975, with Steve Jackson, he founded Games Workshop and launched Dungeons & Dragons in Europe. In 1982 he co-authored the first of the multi-million selling Fighting Fantasy Game books. He has published games magazines and has had several of his own games published. An early investor in Domark, he joined the company in 1992. When, in 1995, the company was reversed into Eidos, he was appointed Executive Chairman of the new group until 2002. He has helped Eidos secure many of its major franchises, including Tomb Raider. He is presently Creative Director of Eidos. Dominic Wheatley, aged 44, Chief Executive Officer, worked in an Advertising Agency before co-founding Domark in 1984, a video games company that he later reversed into Eidos. In 1992 Dominic established Domark's US subsidiary in California. The company changed its name and Dominic served as CEO of Eidos Interactive until 1997. He then became an investor in various companies, some of which he joined as a director and helped float on the London Stock Exchange (Statpro, Kuju and Telecom Plus). He is Chairman of Highway Capital plc, and has commercial interests in France. Dominic will have day to day responsibility for the management of the Group. John Kavanagh, aged 36, Chief Technical Officer, is the inventor of the device. As an Executive of Eidos Interactive, John served as Vice President of Development of Eidos US Inc. (a wholly owned subsidiary of Eidos) then as group Publishing Director. After three years in this role he then ran Eidos's US Studios including Ion Storm and Crystal Dynamics. John will be responsible for the continued development of the platform and he is currently based in the US where he also runs the US office of the Group. Matthew Tims, aged 43, Publishing Director, is responsible for all commercial exploitation of the device, negotiating publishing and licencing contracts with high profile licence holders. Matthew has 21 years of experience in computer software publishing through previous positions with Palace Software and Domark. Prior to joining the company, Matthew was Chief Executive at Two Way TV, a company specialising in interactive television. Matthew will be responsible for the acquisition of licences for the platform. Adrian Moores ACA, aged 31, Finance Director, qualified with Critchleys, an 18-partner practice in Oxfordshire. He then joined KPMG and specialised in advising software and hardware companies. He was a finance manager for Unipart International, the sales and marketing division of the Unipart Group of Companies. He spent three years as European Financial Controller for 3DO, a video games publishing company. Since 2002, he has worked with Crunchwell advising start up and entrepreneurial businesses. Adrian will be responsible for the financial function of the Group. Charles Fairbairn ACA, aged 42, Non-Executive Director, has many years' experience in the media sector and in growing entrepreneurial companies. At Pearson plc, he worked as Finance Director of Pearson New Entertainment, a start-up division with interests in computer publishing, and as Group Chief Accountant. Pearson New Entertainment Limited was sold in 1998 to Apax Partners for £142 million. Since then he has provided advice to small and growing companies. He is also a non-executive director of Statpro Group plc and Finance Director of Advance Capital Invest plc, both AIM listed companies. This information is provided by RNS The company news service from the London Stock Exchange
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