C Y Foundation Enters Into Supplemental Agreement with YNK
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Better Terms for Obtaining Exclusive PRC Distribution Rights of
Korea’s Top 10 Online Game “Rohan”
[1 April 2009 – Hong Kong] C Y Foundation Group Limited (SEHK: 1182; “C Y Foundation”) has secured more favourable terms with YNK Korea Inc to obtain the exclusive PRC distribution rights for “Rohan”, one of the top 10 multiplayer online games in Korea. Consideration was reduced by US$1 million to US$8 million. Under the revised terms C Y Foundation will, upon successful application for and approval of the required PRC distribution licenses, pay US$3 million as a technical support fee and US$5 million as minimum royalty fees under a profit sharing mechanism. C Y Foundation will make these payments to YNK in phases over three years.
Mr. Theodore Cheng, Chairman of C Y Foundation, said, “In light of the global economic downturn, we saw the need to revise the terms to better reflect the current market situation. The supplemental agreement has taken into consideration the interest of both parties. We believe it is beneficial to our business development.”
“Despite the challenging market environment, we strongly believe the PRC online gaming industry has huge potential, given the countercyclical nature of the industry and the rapid rate of Internet and broadband market penetration in the PRC. C Y Foundation is confident that the PRC’s online gaming industry will continue to develop and expand.” he added.
“Rohan” is a massive multiplayer online role-playing game that has been ranked one of Korea’s top 10 multiplayer online games for the past three years. The Group previously announced on 30 December 2008 its plans to acquire the exclusive rights from YNK Korea to distribute and market the game in the PRC for a term of three years at a total consideration of US$9 million.
About C Y Foundation Group Limited
C Y Foundation is an interactive digital entertainment company that provides quality entertainment across China. It is the only company dedicated to organising and running P2P tournaments for prizes throughout the mainland. C Y Foundation will distribute its online entertainment platform through a network of "green" Internet cafés throughout China.
Corporate website : www.cyfoundation.com.
About YNK Korea Inc
YNK Korea Inc is a listed company in Korea, principally engaged in the development and distribution of online games.
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