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Last updated on April 25, 2014 at 1:22 EDT

Excapsa Responds to Kahnawake Gaming Commission

December 2, 2008

MONTREAL, Dec. 2 /PRNewswire/ – XMT Liquidations Inc. (“XMT”), the court-appointed liquidator of 6356095 Canada Inc. (formerly Excapsa Software Inc., “Excapsa”), today responded to statements made by the Kahnawake Gaming Commission (“KGC”) in a press release issued on December 1, 2008. The KGC announcement, which purported to clarify comments made on a recent segment of CBS’ 60 Minutes, erroneously stated that: “…the Ultimate Bet (“UB”) cheating was initiated while UB was owned and operated by Excapsa.”

In fact, Excapsa never owned UB. UB was a licensee of Excapsa’s gaming software and was owned and operated by an arm’s-length third party. Moreover, it is a matter of public record and well-known to the KGC that Excapsa acquired the software code from a third party in July 2005, more than a year after the cheating on the Ultimatebet sites began. The KGC’s own press release issued September 29, 2008 included the following statement:

    "The Commission found clear and convincing evidence to support the
    conclusion that between the approximate dates of May 2004 (emphasis
    added) to January 2008, Russell Hamilton, an individual associated with
    Ultimatebet's affiliate program, was the main person responsible for and
    benefitting from the multiple cheating incidents."

Mr. Sheldon Krakower, the President of XMT, said: “It is disappointing that, without any prior consultation, the KGC chose to hastily issue a press release containing inaccurate and contradictory information. As we previously disclosed, XMT does not believe that management of Excapsa had any knowledge of the cheating tool and, importantly, there was absolutely no admission of liability or wrongdoing pursuant to the recent settlement with Blast Off. The settlement was an important step in Excapsa’s liquidation process, avoiding costly litigation and reinstating payments under Blast Off’s promissory note. Excapsa obtained security for the $15 million settlement payment and the balance of the note payments, and also acquired an ownership interest in Blast Off’s gaming software to hopefully generate further value for shareholders”.

Mr. Krakower went on to say: “The KGC asked us to work with them to ensure that the $15 million settlement payment was used exclusively for player refunds. We took the lead in monitoring the disbursement process and gave the KGC full access to our files and records.”

Information relating to the settlement is available at http://www.wsbg.com/en/liquidation.html.

SOURCE 6356095 Canada Inc.


Source: newswire