Electronic Game Card signed agreement with leading media company in Korea

Company management expects the agreement, which contains yearly minimum royalty guarantees, to begin generating sales in the current year fourth quarter. One of the key distribution channels for Kellof will be with Borazone and directly with household leading global brands from Korea.

Borazone, founded in 2000, has quickly become one of South Korea’s leading entertainment companies, whose business segments includes film, TV, IPTV, production, distribution, music, concert, online-games, interactive data service, Internet and information technology. Borazone is the dominant content provider to Seoul’s Broadcasting System; Korean premier digital Satellite TV, SkyLife, with over 150 channels and South Korean IPTV and Cable network.

The company is currently involved with the standardization of Korea’s digital media platforms to support the development of next generation broadcasting. The company has 185 employees, and generated annual revenue of us$ 42 million.

“We see great value in EGC’s technology and anticipate strong interest from our customer base. Kellof's management with Borazone, is a diversified entertainment company that employs leading edge marketing technology to promote its services and products. The adaptability of EGC’s creative and progressive technologies to our marketing strategies will support the attainment of our objective to be the master content provider in the Asia Pacific region,” commented Michael Yang, CEO & President of Kellof. 

Anna Houssels, Executive VP of Sales for Electronic Game Card, added, "We are in an enviable position to partner with a fast growing marketing and leading entertainment company such as the Kellof group and its affiliations with Borazone and popular Korean brands. The management teams at Kellof and Borazone are highly respected nationally with connections at the highest levels throughout Korea, and their ability to deliver a multi-entertainment platform and content. They are gaining key recognition throughout Asia.” 

Under the terms of the 3-year exclusive agreement, Kellof with its affiliations in Korea, will market, sell and distribute the EGC Electronic GameCard, the EGC Electronic iQuizCard and EGC Edutainment Play Card units meeting EGC’s and Gaming Laboratory International manufacturing standards into South Korea.

EGC will be entitled to royalty fees that will range from approximately 20 to 25 % of the gross selling price of the EGC Electronic GameCard, the EGC Electronic iQuizCard, and EGC Edutainment Play Card. ECG will also receive a minimum guarantee in royalty fees of us$ 200,000 annually. All royalty payments will be made to EGC on a quarterly basis within 30 days after the quarter concludes.

"This new agreement between EGC and Kellof is powerful because of Kellof and Borazone clients and relationships that exist with the largest household brands from Korea which are world class, category leading companies in mobile communications, consumer electronics, automobile, online entertainment, television broadcasting, new media, and others which will directly improve our new promotions and education clients," continued Anna Houssels.

"As these Korean companies activate their brands through sponsored marketing events around the world in sports, entertainment, and charity, our EGC technology will enable their consumers to engage with their brand in an innovative and fun manner while providing database benefits."