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|Take-Two Interactive Software, Inc. Enters Distribution Services Agreement with Ditan Distribution LLC|
NEW YORK--(BUSINESS WIRE)--Sept. 9, 2008--Take-Two Interactive Software, Inc. (NASDAQ:TTWO) today announced that it has entered into an outsourcing agreement with Ditan Distribution LLC (a Cinram company), under which Ditan will assume responsibility for the pick, pack, ship and warehousing functions for Take-Two's publishing and distribution businesses previously handled by Take-Two's Jack of All Games subsidiary. The agreement will allow Jack of All Games, Take-Two's distribution business in Ohio which primarily sells third-party products, to focus on purchasing, sales and service for their customers.
Founded in 1994, Ditan is a leading distribution services provider specializing in distribution of time-sensitive products, and is the largest third-party distribution company serving the interactive entertainment industry. In 2007, Ditan Corporation was acquired by Cinram International Inc., the world's largest provider of pre-recorded multimedia products and related logistics services.
Under the agreement, the shipping, receiving, warehouse management and related functions of Jack of All Games will be outsourced to Ditan, which will also assume the lease and all employees of the Jack of All Games distribution facility in West Chester, Ohio. The agreement is effective immediately.
"Outsourcing non-core elements of our business will further enable us to deliver on our pledge to make Take-Two the most creative, the most innovative and the most efficient company in our industry," said Ben Feder, Chief Executive Officer of Take-Two. "Ditan is a best-in-class distributor with extensive experience serving the interactive entertainment industry. By working together with Ditan, we will enhance the efficiency of Jack of All Games' operations, improve service to our retail channel and third-party customers, and reduce the level of resources required for our distribution operation."
"We are very pleased that Take-Two and Jack of All Games have selected Ditan as their distribution service partner," said Ditan President and Chief Executive Officer, Ron Novotny. "We look forward to contributing to their business by delivering the world-class brand of service that has helped make Ditan's customers successful at retail."
About Take-Two Interactive Software
Headquartered in New York City, Take-Two Interactive Software, Inc. is a global developer, marketer, distributor and publisher of interactive entertainment software games for the PC, PLAYSTATION(R)3 and PlayStation(R)2 computer entertainment systems, PSP(R) (PlayStation(R)Portable) system, Xbox 360(R) and Xbox(R) video game and entertainment systems from Microsoft, Wii(TM), Nintendo GameCube(TM), Nintendo DS(TM) and Game Boy(R) Advance. The Company publishes and develops products through its wholly owned labels Rockstar Games, 2K Games, 2K Sports and 2K Play, and distributes software, hardware and accessories in North America through its Jack of All Games subsidiary. Take-Two's common stock is publicly traded on NASDAQ under the symbol TTWO. For more corporate and product information please visit our website at www.take2games.com. All trademarks and copyrights contained herein are the property of their respective holders.
All trademarks and copyrights contained herein are the property of their respective holders.
Important Legal Information
This press release may contain forward-looking statements made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws. Such forward-looking statements are based on the current beliefs of our management as well as assumptions made by and information currently available to them. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results may vary significantly from these forward-looking statements based on a variety of factors. These risks and uncertainties include the matters relating to the Special Committee's investigation of the Company's stock option grants and the restatement of our consolidated financial statements. The investigation and conclusions of the Special Committee may result in claims and proceedings relating to such matters, including previously disclosed stockholder and derivative litigation and actions by the Securities and Exchange Commission and/or other governmental agencies and negative tax or other implications for the Company resulting from any accounting adjustments or other factors. In addition, the Company has announced it is currently evaluating its strategic alternatives. Further risks and uncertainties associated with the Company's process to evaluate its strategic alternatives are as follows: the risk that key employees may pursue other employment opportunities due to concerns as to their employment security with the Company; the risk that the future trading price of our common stock is likely to be volatile and could be subject to wide price fluctuations; and the risk that stockholder litigation in connection with the Company's process to evaluate its strategic alternatives (including stockholder litigation relating to Electronic Arts Inc.'s tender offer to acquire the Company's outstanding shares that expired on August 18, 2008) or otherwise, may result in significant costs of defense, indemnification and liability. Other important factors are described in the Company's Annual Report on Form 10-K for the fiscal year ended October 31, 2007, in the section entitled "Risk Factors," as updated in the Company's Quarterly Report on Form 10-Q for the fiscal quarter ended July 31, 2008, in the section entitled "Risk Factors," and can be accessed at www.take2games.com. All forward-looking statements are qualified by these cautionary statements and apply only as of the date they are made. This communication does not constitute an offer to sell or invitation to purchase any securities or the solicitation of an offer to buy any securities, pursuant to the Company's process to evaluate its strategic alternatives or otherwise.
CONTACT: Corporate Press/Investor Relations: Take-Two Interactive Software, Inc. Meg Maise, 646-536-2932 email@example.com SOURCE: Take-Two Interactive Software, Inc.