Date: Fri, 19 Dec 1997 04:11:15 GMT Server: NCSA/1.5.1 Content-type: text/html
1. LAWSUIT AGAINST TIME DISTRIBUTION SERVICES, INC.
2. JOINT VENTURE WITH GROUP V CORPORATION
LOTTOWORLD, INC., ANNOUNCES
LAWSUIT AGAINST TIME DISTRIBUTION SERVICES, INC.
NAPLES, FLORIDA, October 17, 1997-- LottoWorld, Inc. (LTTO), announced that it is seeking direct damages of $3 .4 million and not less than $24 million in lost profits and future earnings from Time Distribution Services, Inc., ("Time Distribution"), a subsidiary of Time Inc.
In documents filed with the United States District Court Southern District of New York; LottoWorld asserts that Time Distribution breached its contract with LottoWorid by falsely representing to LottoWorld, negligently or with gross negligence, the dates when specific retail stores who had contracted to display LottoWorid's magazine at their checkout counters, would be ready to receive the magazine and display it for sale.
Relying on representations made by Time Distribution, LottoWorld printed and distributed the number of magazines that would have been appropriate for display at such stores if the representations had been accurate.
LottoWorld began to suspect the accuracy of Time Distribution's representations when LottoWorld's early spot checks of stores that Time Distribution had reported ready to receive the magazine, did not in fact have magazine pocket available for which LottoWorld had been billed, and that such stores were not in fact displaying LottoWorld's magazine.
LottoWorld conducted an audit of approximately 1,100 stores in the Eastern U.S. that had been reported as ready to receive and display LottoWorld's magazine. LottoWorld's audit showed that at least half of the stores to which Time Distribution had directed LottoWorld to ship its magazine were not in fact ready to receive the magazine.
LottoWorld intends to move for Summary Judgment on Time Distribution's liability in the next several weeks.
CONTACT: James D. Cullen, Investor Relations, (941) 643-1677 or jcullen@coconet.com
LOTTOWORLD, INC., ANNOUNCES
JOINT VENTURE WITH GROUP V CORPORATION
NAPLES, FLORIDA, November 3, 1997 -- LottoWorld, Inc. (LTTO), announced that it has agreed in principle with Group V Corporation (OTC BB GRPV), a diversified telecommunications and software services company, to jointly reorganize, develop and market the publishing assets of LottoWorld, Inc. A definitive agreement will be signed within the next thirty days.
The joint venture agreement contemplates the incorporation of a new subsidiary of Group V, into which LottoWorld will assign its publishing assets and Group V will provide funding.
The proposed agreement would provide increased marketing channels for Group V's wholly-owned subsidiary, National Pools Corporation (NPC). This venture will also facilitate the immediate introduction of NPC's Hit-LoTTo( group play program in multiple state, accelerating NPC's original forecasted roll out. Once the definitive agreement has been signed and the transfer of LottoWorld's publishing assets is finalized, NPC expects Hit-LoTTo( to be operational in several states within 12 months generating gross annual sales of approximately $40 million.
"The opportunities for LottoWorld presented by this joint venture with Group V could be tremendous. We are bringing together the lottery resources and publishing assets of LottoWorld with a rapidly growing Group V which takes advantage of the strengths of both companies." stated Dennis B. Schroeder, CEO and chairman of LottoWorld. Mr. Schroeder further stated "LottoWorld has gone through a difficult few months and we would like to thank everyone involved with LottoWorld for remaining patient. We believe this joint venture with Group V is a major turning point for LottoWorld shareholders and should increase shareholder value."
Joseph Monterosso, president and chairman of Group V stated "We are pleased that LottoWorld recognizes the growth potential afforded by Group V and the win-win benefits created for both companies. This venture will receive the cash influx needed and National Pools will benefit from the magazines publisher's invaluable marketing channels and connections with major US state lotteries".
CONTACT: James D. Cullen, Investor Relations, (941) 643-1677 or jcullen@coconet.com