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MERIT ENTERTAINMENT Merit and Hong Kong Customs Crackdown on Piracy

Hong Kong Customs is regarded as one of the best law enforcement agencies in the world.

Bensalem, PA – Merit Entertainment announced today that the Hong Kong Customs and Excise raided a Kowloon, Hong Kong business on June 28, 2006, where they arrested one employee and seized 32 illegal copies of Merit’s 2005 and 2006 Force video games.

"Hong Kong Customs is regarded as one of the best law enforcement agencies in the world, and Merit Entertainment appreciates their swift and positive action. I had the pleasure of working with Customs in the early and mid 90’s. It was a pleasure to work with them again," said Bob Fay, Merit’s Director of Government Relations. Fay also praised the work of Hong Kong based law firm Baker & McKenzie, which coordinated the investigations and raids on behalf of Merit.

The raids culminated a three-month investigation into the illegal distribution of Merit’s 2005 and 2006 Force video games. Fay also stated that the Hong Kong company is one of the largest distributors of copy Merit products, and that their illegal activities violated Merit’s intellectual property rights. The evidence seized will be the basis for criminal charges under Hong Kong’s Trade Descriptions Ordinance.

"We will continue to protect our distributors and operators, who have invested their money in Merit products, from unscrupulous counterfeit dealers," said Dave Logan, Merit’s CEO. "We are proud to help secure the industry that we worked hard with operators and distributors to build."

"This police action will be the first of several that are likely to happen worldwide in the months ahead," Fay added. "Individuals who copy, distribute, or operate Merit copies should be aware that Merit is serious about protecting their intellectual property rights, and will take aggressive actions worldwide to eliminate Merit copies in the marketplace."

For more than 27 years, Merit has ensured long-term return on investment for operators by providing continually high-earning equipment along with updates and upgrades for its products. With an installed base of over 250,000 touch-screen games garnering nearly 4.6 billion plays per year, Merit Entertainment is the worldwide leader in touch-screen entertainment devices. Merit Entertainment products appear globally in a wide array of venues and appeal to an almost limitless demographic. Merit continues to expand its position in the industry with ever-increasing entertainment, content, and new games. The company maintains a Web site with all the latest information at www.meritind.com.