TransGaming Inc.
TSX VENTURE : TNG

TransGaming Inc.

August 29, 2012 16:30 ET

TransGaming Reports 2012 Annual Financial Results

Annual revenues increase 22% to more than $6 million

Company to conduct conference call August 30th at 10am ET

TORONTO, ONTARIO--(Marketwire - Aug. 29, 2012) - TransGaming Inc. (TSX VENTURE:TNG) ("TransGaming" or the "Company") today reported its fourth quarter and fiscal 2012 results and sent notice of its Annual General Meeting of Shareholders, to be held September 25, 2012, at TransGaming's head office in Toronto. The Company's audited consolidated financial statements for the year ended May 31, 2012, Management's Discussion and Analysis, and Annual Information Form, together with the Notice of Meeting and Information Circular have been filed and are available on SEDAR at www.sedar.com.

Highlights

  • The Company acquired the iTV assets of Oberon Media Inc. to strengthen and accelerate its market opportunity with GameTree™ TV. The acquisition brings distribution agreements with several cable, satellite, iTV service providers and leading Smart TV manufacturers.

  • During fiscal 2012, the Company added the following distribution channels: DISH Network, DIRECTV, Reliance, AirTel, and Select-TV. The Company also announced new distributions, one with a major US telco and one with an East Asian operator.

  • Annual revenue was $6.2 million, up over 22% from 2011 with annual gross margins of more than 60%.

  • Q4 represented a record quarter with $2.4 million in revenue.

  • As part of the iTV acquisition from Oberon, the Company now has licenses to major brands for the delivery of games to the connected TV market upon which it is building highly engaging connected TV experiences.

  • Multi-screen support was integrated into GameTree TV to create a more comprehensive game play experience for consumers and to deliver new forms of games with unique and innovative interactions. The first major title to showcase this innovative interaction and immersive experience is World Poker Tour®, which will be released this fall on GameTree TV.

  • Using its Cider technology, the Company enabled some of this year's top gaming titles including Skylanders Spyro's Adventure™, FIFA Soccer 12™, Darkness II™, the RockStar's Grand Theft Auto™ franchise, DisneyPixar's BRAVE: The Video Game™, and released its own title KULA BLOX.

  • The Company announced support for MIPS® Technologies based set-top boxes, which increases the GameTree TV addressable market.

Management Discussion

Commenting on the results, Mr. Vikas Gupta, Chief Executive Officer and President of TransGaming stated, "This last year has been, perhaps, the most transformational in the history of the Company. We have seen both incredible business success and frustrating volatility in the capital markets. In the midst of numerous positive developments, we have also required much patience. While we found ourselves slightly ahead of the curve, our expectations remain high that the connected TV industry will continue to expand rapidly and we are seeing this trend take shape now. We believe TransGaming's business model is solid, our GameTree TV platform to be leading edge, and expect this business will prove itself in the current fiscal year and beyond. As this massive growth opportunity ahead of us materializes, we expect our established products will continue to perform well as is reflected in our record fourth quarter."

Mr. Gupta concluded, "We see amazing promise as we look to the future and this is an exciting time for innovators such as TransGaming. We are working hard to define the next generation connected living room experience and we are at the nexus of what I believe will be explosive growth in the Connected TV and gaming marketplace. Fiscal 2012 enabled us to establish a strong foundation, including new MSOs that are imminently coming online, which should bode well for our Company in fiscal 2013."

Conference Call Details

TransGaming will hold a conference call at 10:00 a.m. ET on August 30th, 2012 to review the fourth quarter and 2012 results. The telephone number for the conference call is 416-340-2216. The call will be recorded and a digital replay will be available on the Company's Investor Relations portion of its website at: http://transgaming.com/investor-relations.

About TransGaming Inc.

TransGaming Inc. (TSX VENTURE:TNG) is the global leader in the multiplatform deployment of interactive entertainment. TransGaming works with the industry's leading developers and publishers to enable and distribute games for Smart TVs, next-generation set-top boxes, Mac computers, and Linux/CE platforms. TransGaming is headquartered in Toronto, Canada.

TransGaming has recently updated its website to provide a range of information from company news to industry articles, commentary, and insight. Please visit www.transgaming.com to learn more.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements. Actual events or results may differ materially from those described in the forward-looking statements due to a number of risks and uncertainties, including changes in financial and product market conditions. Forward-looking statements are based on management's estimates, beliefs, and opinions. The Company assumes no obligation to update forward-looking statements, other than as may be required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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