IwerksÆ Entertainment, Inc. And SimEx Inc. Announce Execution Of Letter Of Intent For Strategic Acquisition

12-Mar-01

IwerksÆ Entertainment, Inc. (OTCBB: IWRK), a leading provider of special venue entertainment theatres, and SimEx Inc., a dominant player in the special venue entertainment market, announced that both companies have signed a non-binding letter of intent for SimEx to acquire Iwerks Entertainment. The letter of intent provides that SimEx will acquire Iwerks in exchange for $0.63 per share of common stock currently issued and outstanding. The transaction is subject to due diligence, financing, the execution of binding transaction documents, shareholder approval, and other customary closing conditions. If the two companies combine, it is expected that Iwerks will retain its brand name and identity and will continue operations in Burbank, California under the existing Iwerks management team.""The combined companies can serve a wider segment of the market,"" says Michael Needham, SimEx CEO. ""Together, we can meet the objective of becoming a worldwide dominant player in the special venue attraction market. In addition, the combined companies and our valued customers will be able to take advantage of greater cost efficiencies in terms of service and support, film production, film distribution, manufacturing, and worldwide marketing."" ""I am extremely excited about the synergy of the combined resources of SimEx and Iwerks."" says Don Iwerks, Chairman of Iwerks Entertainment. ""The merger will solidify our combined presence in the special venue market, providing the very best of hardware and film content. Iwerksí interim CEO Gary Matus, whose background includes successful merger and acquisition experience, has been instrumental in this proposed strategic acquisition. Garyís record of accomplishments, and clear strategic vision, will be a tremendous asset to combined companies. With an Iwerks/SimEx combined network of nearly 120 simulation theatres and a network of 250 large format theatres worldwide, the demand for new films continues to grow. Following a combination of the two companies, Iwerks will work closely with SimEx Digital Studios, headquartered in Santa Monica, California to accelerate film production and fuel the ongoing creation of world class content for our combined network of theatres.""For more information about Iwerks Entertainment Inc., visit www.iwerks.com. For more information about SimEx, visit www.simex.ca.

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http://www.simex.ca
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