Manila, Philippines; 13 December 2010 -- IP E-Game Ventures, Inc. (IP E-Games; PSE: EG), the publicly listed online gaming subsidiary of listed technology conglomerate IPVG Corp. (PSE:IP), has signed a share purchase agreement with ePLDT to purchase the latter’s 75% stake in Digital Paradise Inc. (Digital Paradise). Digital Paradise operates the Netopia brand of Internet Cafes. The Internet Café chain currently has a network of 112 cafes nationwide, 76 of which are company owned and 36 of which are franchised.

Under the agreement, E Games will purchase 97.6 million shares of Digital Paradise representing 75% of the company. Finalization of the purchase is subject to a 45 day due diligence period.

E Games is one of the leading online game publishers in the country, offering a portfolio of online games consisting of Massively Multiplayer Online Role Playing Games or MMORPGs, and casual online games. E Games pioneered the free to play business model, wherein gamers are not required to pay a subscription fee to play online games.  Gamers are given the option of purchasing “in game items” to enhance their gaming experience.  The company sells virtual currency (e Points) that is used to purchase these in-game items. E Games publishes top MMORPGs such as Ran Online, Cabal Online, and recently launched, Dragonica. E Games also has a strategic partnership with GMA7 to publish its casual online games such as Bandmaster, Superstar, and Operation7.

Netopia is the largest chain of Internet Cafes in the Philippines consisting of 76 company-owned and 36 franchised branches located in major malls and school perimeters. Netopia serves over 1.5 million customers monthly, 80% of which are from ages 16 to 35, and uses high-speed Internet provided by PLDT. With Netopia’s broad network coverage, Netopia has attracted many large corporate customers for its training, recruitment and advertising needs. At the retail side, Netopia has become a popular destination, for both men and women for Internet surfing, Gaming, Digital Printing and Electronic Load needs.

CEO of E Games, Enrique Y. Gonzalez, says, “The Internet Café business is a strategic sector of our company, and with the signing of this agreement, we are one step closer to establishing a strong presence in that sector.  Netopia is a leading chain in the Internet Café industry and we plan on providing additional investment for expansion.”

The purchase of Digital Paradise will give E Games access to a large network of Internet cafes where it can launch, market, and promote its games.  One of E Games’ objectives is to increase utilization at Netopia by channeling more of its 12 million users to Netopia cafes. E Games also believes that it can increase ad spending at the cafes by providing advertising customers with an additional advertising medium. Advertising customers will be able to advertise on-line, in-game, and now through Netopia’s over 4,000 work stations. E Games recognizes the potential synergies in the transaction and is truly excited about the growth prospects of Digital Paradise.