Exhibit 99
FOR IMMEDIATE RELEASE
Investment Contact:
Karen Q. Pisciotta
(516) 656-2153
Media Contact:
Claudia Ceniceros
(516) 656-2565
ACCLAIM ENTERTAINMENT
ADOPTS SHAREHOLDER RIGHTS PLAN
GLEN COVE, NY (JUNE 6, 2000) - Acclaim Entertainment, Inc. (NASDAQ: AKLM),
a developer, publisher, distributor and marketer of video and computer
games, announced today that its Board of Directors adopted a Shareholder
Rights Plan to deter unfair takeover tactics.
The Rights Plan is designed to deter and to prevent an acquirer from
gaining control of the Company by accumulating shares in the open market or
through private transactions without offering a fair price to all
shareholders. The distribution of the Rights is not intended to prevent a
takeover of the Company and should not deter any prospective bidder willing
to negotiate with the Board of Directors and pay a full and fair price for
the Company's shares.
The Rights will be distributed to shareholders as a dividend at the rate of
one Right for each share of common stock, $0.02 par value, of the Company
held by shareholders of record as of the close of business of June 21,
2000. Each right initially will entitle shareholders to buy one
one-thousandth of a share of a new Series B Junior Participating Preferred
Stock at an exercise price of $30 per Right, subject to adjustment. Because
the Rights will not initially be exercisable and will trade with the common
stock, separate Right certificates will not be provided to shareholders at
this time. The Rights generally will be exercisable only if a person or
group acquires beneficial ownership of 10% or more of the Company's common
stock.
The Company also announced that it has adopted certain changes to the
Company's By- Laws which are designed to enhance the Company's corporate
preparedness. A copy of the Rights Agreement and By-Laws amendments will be
filed shortly with the Securities and Exchange Commission. This press
release contains forward-looking statements. There are certain important
factors that could cause results to differ materially from those
anticipated by the statements made above. Such risks and uncertainties
include, among other things, the rate of growth of the installed base of
the next generation gaming and PC systems, the timely availability and
acceptance of Acclaim's future products for such systems, the timing of the
introduction of next generation systems, the Company's ability to develop
successful products for those systems, the competitive environment in the
consumer software and related industries, the management of inventories and
operating overheads and the related impact upon liquidity should any of
these risks occur. These and other risks and uncertainties are detailed
from time to time in Acclaim's reports filed with the Securities and
Exchange Commission.
BACKGROUND INFORMATION:
Acclaim is a worldwide developer, publisher and mass marketer of software
for use with interactive entertainment platforms including Nintendo, Sony
Computer Entertainment America and Sega hardware systems, and PCs. Acclaim
owns and operates five software development studios located in the U.S. and
the U.K. where it develops its own software, and a motion capture studio in
the U.S. Acclaim distributes its software directly in North America, the
U.K., Germany, France, Spain and Australia. Acclaim also distributes
software developed and published by third parties and develops and
publishes strategy guides relating to its software and comic book
magazines. For more information, please visit our website at
http://www.acclaim.com.
###
