SSI has now completed its move to China gaming
todays release
Chairman?s Address, 31 October 2005 Today marks the start of a new beginning for SSI. The company?s activities will in the near future be expanded to capitalize on the gaming licenses that have been issued to China Entertainment Holdings (now a wholly owned SSI subsidiary) and to maximize other opportunities in, particularly, the PRC, Hong Kong and Australia for selected investments. I would like to briefly discuss my vision for SSI. Gaming in the PRC is effectively a national pastime. Gaming has existed in China since early in the 2nd century B.C. when the earliest version of the Keno game was invented. The Keno game was originally called White Pigeon because carrier pigeons were used to pick up numbers and transmit the results to remote areas. In the Han Dynasty, the construction of the Great Wall of China was urgently needed for the country?s defence. Imposing an additional tax on the people for the construction of the Great Wall was not an acceptable option, so the Keno game was invented to raise the required funds. It has grown in popularity ever since. In recent years, the PRC has allowed welfare agencies to issue gaming permits in order to raise money for welfare causes in China. Between 1987 and 1999 welfare lotteries raised about AUD$2 billion for social welfare causes. Over the next ten years, growth in PRC gaming is forecast to double every two years ? to around 30 times its current size by 2015. Technology is changing the industry rapidly. No longer are carrier pigeons involved in transmitting the results, which are, or will soon be, instantly available via up to 200 million mobile phones, or at point of sale terminals, or via interactive gaming television channels. Already our Keno Point of Sale (?POS?) franchising operations in Shanghai are underway and a similar Keno Bar franchising operation in alliance with mass transportation operators is almost ready to start. A natural consequence of this rollout program will be the creation of long term sustainable revenue for SSI and its shareholders, while providing the funding that supports welfare agencies in the PRC as well. It?s a win-win situation for all involved and the technology that Go- Connect has developed over the years will be of value. In particularly GoConnect?s mobile gaming application will be of critical importance to the SSI Group as the mobile phone market is huge in China. We will provide more detailed information on our gaming business rollout program as and when appropriate. In closing, I welcome you on board our exciting SSI Group and to share with you the many opportunities that we have secured in the PRC and also, via GoConnect, in other parts of the world. Teddy Cheng
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