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MERIT ENTERTAINMENT Hong Kong and Chinese Copiers Receive Sentences

Merit Entertainment is the worldwide leader in touch-screen entertainment devices.

Bensalem, PA – Bob Fay, Director of Government Relations at Merit Entertainment, has confirmed that illegal copiers of Merit products have pleaded guilty and received sentences in both Hong Kong and China.

Fay stated that on January 25, 2007 in Kowloon City Magistrates Court, Hong Kong, Excellent Com Ltd. and its Director, Hui Kin, pleaded guilty to charges of “possession for sale or for any purpose of trade or manufacture goods to which a false trade description applied.” Both the company and Mr. Kin himself received substantial fines. “Both could face more serious penalties and possible imprisonment if they violate Merit trademarks in the future,” added Fay. Hong Kong Customs and Excise investigated this case with assistance from Baker & McKenzie law firm.

In China, EXL of Panyu was recently sentenced and fined by the Panyu Administration of Industry and Commerce, and ordered to cease the unregistered business activities immediately. This case was handled by the Economic Crimes Investigation Department of the Panyu AIC with assistance from Baker & McKenzie. “We expect the AIC to issue sentences shortly for two other companies, Chengtai and Totem,” said Fay.

Merit President & CEO Mike Maas added, “We are delighted with these outcomes and that the authorities in the relevant parts of the world are giving us their full support in this ongoing initiative. Further cases are currently pending in China, South Africa and Malaysia, and investigations are under way in several other countries. Merit will not rest on this issue, and we will continue our pursuit of infringers across the globe to protect the interests of our legitimate distribution channels.”

For more than 29 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.meritgames.com.