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MERIT ENTERTAINMENT SOUTH AFRICAN CUSTOMS AND EXCISE SEIZES MERIT COPIES

This recent action should again illustrate Merit Entertainment’s commitment to fighting worldwide piracy

Bensalem, PA – Merit Entertainment announced today that South African Revenue Service recently seized a shipment of forty 2006 Merit Force copies in Durban, South Africa. The shipment was shipped from Guangzhou Xiongye Electonics Company in Guangzhou, China, and was in transit to an importer in Durban. The importer could face criminal charges and the goods will be destroyed.

“SARS is an excellent law enforcement agency, and Merit Entertainment appreciates their swift and positive action. This recent action should again illustrate Merit Entertainment’s commitment to fighting worldwide piracy,” stated Bob Fay, Merit’s Director of Government Relations. Fay added, “In a recent trip to South Africa I had the opportunity to meet with representatives from SARS. I was impressed my their professionalism and commitment to fighting piracy.”

“In addition to meeting with SARS, I also met the DTI and the Commercial Crimes Units of major city police departments. I informed them of our counterfeit issues in South Africa, and received their commitments to assist Merit,” stated Fay. “Anyone importing, operating and/or distributing Merit copies will be a target for enforcement action by South African authorities in the weeks ahead. If you don’t want to face criminal charges, get rid of your copies,” cautioned Fay.

Fay also added that SARS has been given the names of Chinese exporters of Merit copies as well as suspected importers. “The recent seizure cost the importer $30,000 he paid the Chinese pirates. Now he doesn’t have the goods and he’s facing serious legal problems,” Fay stated.

Fay also praised the efforts of the DM Kisch law firm in Johannesburg, which has been retained by Merit to represent them in South African Intellectual Property matters.

Merit’s President, David Logan added, “We are very pleased with the success of our anti-piracy program, and with the cooperation and support we are getting from officials in South Africa, as well as many other countries. We will continue to expand our enforcement efforts in this area, and anticipate more actions in the immediate future.”

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, music, content, and new games. The company maintains a Web site with all the latest information at www.meritind.com.



(July 26, 2006)