INFINIUM LABS, INC. (OTCBB: IFLB)

Dear Reader,

Today's featured company is is not new to Stockupticks. We did a full profile on Infinium Labs last year about this time. (To read the Stockupticks profile from February, 2004, the link is HERE). A lot has happened for IFLB in the past year. The company has re-designed the cosmetics of  its gaming consoles, re-modeled its business strategy, and it has been active marketing its products and services through trade show alliances (with Microsoft for example).

Infinium works with Sun Microsystems (Nasdaq: SUNW) and in October of 2004, the two got together to share their common dream that one day, all computer games would be available over the Internet and a 'hard' purchase or store rental would be a thing of the past.  "Digital Distribution" seems the way of the future and that is what Infinium has been saying since day one.  In September of 2004, more than 20 game publishers and developers signed on to supply titles for Infinium's Phantom Game Service™, an on-demand game service to be offered by Infinium Labs. 

Infinium is set to launch the Phantom™ Game Service in late 2005 and company management is confident it will be a success.  In fact, one of the things we like about Infinium is that the Chairman and CEO puts his own money into the dream.  CEO Tim Roberts says he has committed more than $2 million in personal funds, in addition to $3 million to $4 million in collateral, because he believes in the company and wants it to succeed. 

The company has its fair share of detractors to its vision (not unlike Ford or Google) and there have been certain forces in the market that CEO Roberts recently addressed in a Tampa Bay Business Journal. He attributed a recent drop in price in part to short sellers using negative investor relations to drive down prices in order to purchase shares at a lower rate and cash in if the company rebounded.  "Some people make a lot of money when stocks go down," he said. "And when stocks go down it is hard for a pre-revenue company to combat momentum." 

New product design, new 'out-in-the-crowd' marketing tactics, trade show appearances with big boys like Sun and Microsoft, and a CEO that's not afraid to face the difficulties of success.  Sound interesting?  We think so.  Please read our updated profile that follows.
 

About Infinium Labs

Infinium Labs™, Inc. was founded by a management team with extensive experience in interactive media, entertainment and technology. Based in Sarasota, Fla., Infinium is an innovative entertainment and interactive game company developing and marketing its flagship product, the Phantom Game Service.  The Phantom Game Service is a leading-edge game delivery system designed to bring the game experience to a mass audience with the convenience, breadth of content and ease of use that they demand.  It is the first end-to-end, on-demand service of its kind. Delivered over broadband, the Phantom Game Service will offer casual and avid gamers a broad library of titles, available anytime, day or night, from the comfort of their living room. The company is set to launch its cutting edge online gaming service in 2005. 

There is demand. The company reports 15 million unique visitors to its Web site each month (the link is HERE). Phantom targets a niche of older gamers, a market that is currently too small for gaming giants such as Nintendo, Sony or Microsoft. The largest consumers are still ages 18 to 22.

Any Game, Any Time™

Four Key Stats On The Video Game Industry

Infinium Products & Services

The Phantom™ Game Service is the ultimate gaming experience offering the first end-to-end, on-demand game distribution service.  Designed for the whole family, from the avid gamer to the casual player, the service offers subscribers a library of titles, from the top new games to old standards people want to play again and again - and makes them available any time, day or night, from the comfort of your home.  It is easy to use, convenient and personalized to individual game players.

• Non-proprietary development platform (Windows XP® ) - Does not require developers and publishers to incur any additional development costs 
• Powerful digital rights management (DRM) solution that ensures seamless delivery of digital content to consumers while protecting against piracy 
• Try, rent or buy games on demand 
• Broad range of titles appealing to the entire family 
• Personalized user experience: multiple user profiles and parental control features 
• State of the art design and technology 
• Multi-tiered subscription service that meets the needs of casual, moderate and hardcore game players 

The Phantom Lapboard allows for easy use while seated in the living room.
It also has extra ports to provide flexibility for specialized peripherals such as game-pad controllers.

The Phantom™ Game Service offers gamers a wealth of options, from wireless connectivity to massive multiplayer capabilities, allowing gamers to demo games before purchasing or subscribing. The Phantom Game Service supports PC games, interactive content, ported console games and provides consumer advantages over the traditional personal computer or gaming console offering an online content distribution platform for the ultimate gaming experience. 

The Phantom supports all current and future Windows-based titles with thousands of titles to choose from. Subscribers receive access to back catalogues of games, seamless modifications and extensions, and the capability for massive gaming tournaments and LAN parties. 

Phantom™ Game Service is designed to provide a completely new entertainment experience. Because it is always connected to your broadband service, digital content is literally at your finger tips when YOU want it, day or night without leaving the comfort of home. Works with any consumer-standard broadband Internet Service Provider (ISP): DSL or faster.

Sign up for a two-year basic subscription to Phantom Game Service and the hardware and controllers are free of charge. As a subscriber you will receive an initial library of free games, supplemented each month with new choices as a part of your basic subscription fee. Additional titles are available for immediate demo, rent or purchase. Premium content packages will also be made available. Subscription-based service includes: Free library of titles as part of basic subscription, new, premium titles available on-demand: try, rent or buy, and a wide selection of games for everyone in the household: both single and multiplayer games. 
 

**Recent News >From Infinium Labs**

Press Release 
Source: Infinium Labs, Inc.
Monday February 28, 7:58 am ET

SARASOTA, Fla., Feb. 28 /PRNewswire-FirstCall/ -- Infinium Labs (OTC Bulletin Board: IFLB - News) will present its flagship Phantom Game Service(TM), built on Microsoft Windows XP Embedded, in the Microsoft booth No. 1602 in San Francisco's Moscone Center during CMP Media's Embedded Systems Conference (ESC), Sunday to Thursday, March 6 - 10, 2005.

The ESC demonstration follows the highly successful presentation of Infinium's Phantom Game Service at the Microsoft Windows Embedded Device Showcase exhibit during the recent Consumer Electronics Show in January in Las Vegas.

"We are pleased to showcase the Phantom Game Service at ESC as an innovative example of how Windows XP Embedded can create a custom product solution and enable new services," said Jane Gilson, director, Mobile and Embedded Devices Division at Microsoft Corp. "Windows XP Embedded provides a familiar and flexible development environment and feature set Infinium utilized to deliver a compelling home entertainment application."

Windows XP Embedded provides the functionality and performance of the Windows operating system in componentized form; enabling device-makers to rapidly build reliable devices that can adapt and enrich computer and Internet-based digital media. The Phantom Game Service will be delivered over broadband to a Windows XP Embedded-based receiver that sits in the living room.

"The Phantom Game Service was built using Windows XP Embedded to deliver stability, reliability and a custom user interface," Kevin Bachus, president and COO, Infinium Labs, said. "But more importantly, by developing with Windows XP Embedded, consumers will have access to the widest possible selection of game titles and the highest quality game experience."

Infinium has announced that nearly two dozen leading game providers have committed to provide content for the Phantom Game Service, including Atari, Codemasters, Eidos, Vivendi Universal and many more. The company has announced it will launch the service in 2005.

To read the entire release, click here

Press Release 
Source: Infinium Labs
Thursday February 17, 7:58 am ET

SARASOTA, Fla., Feb. 17 /PRNewswire-FirstCall/ -- Infinium Labs (OTC Bulletin Board: IFLB - News) today announced a strategic marketing agreement with Summit Sales & Marketing to add Mid-Atlantic and South Eastern regional support to key accounts as well as expand Infinium's overall retail distribution capabilities for the Phantom Game Service(TM) in North America.

"Summit has a proven record of success in marketing major manufacturers such as Apple Computer, Phillips Consumer Electronics, Kodak, Canon and Samsung Electronics to consumer electronics, communications and computer retailers," said Kevin Bachus, Infinium Labs' President and COO. "This adds another dimension of strength to our team to offer the best possible sales support and service to our customers."

"The Phantom Game Service offers an exciting new business opportunity for retailers to participate in the rapidly growing digital distribution market while earning on-going subscription and transaction revenue streams," said Garry Dienes, President of Summit Sales & Marketing. "Our combination of pre- sales, sales and post sales support will allow Summit to achieve sales volume and market penetration for the Phantom Game Service." 

To read the entire release, click here

Press Release 
Source: Infinium Labs
Thursday January 27, 8:03 am ET

SARASOTA, Fla., Jan. 27 /PRNewswire-FirstCall/ -- Infinium Labs (OTC Bulletin Board: IFLB - News) today announced a strategic marketing agreement with Pinnacle Marketing Group, Inc. to add regional support to key accounts as well as expand Infinium's overall retail distribution capabilities for the Phantom Game Service(TM) in North America.

"Pinnacle has a proven record of success in marketing major manufacturers such as Logitech, LG Electronics and Hitachi to consumer electronics, communications and computer retailers," said Kevin Bachus, Infinium Labs' President and COO. "This adds all-star strength to our team to offer the best possible sales support and service to our customers."

"The Phantom Game Service offers an exciting new business opportunity for retailers to take advantage of the rapidly growing digital distribution market while participating in on-going subscription and transaction revenue streams," said Gregory A. Harris, President of Pinnacle Marketing Group, Inc. "Our management team has a combined 50 years of experience marketing new technology and we think this is a winner." 

To read the entire release, click here

Oct 29, 2004 (M2 PRESSWIRE via COMTEX) -- SANTA CLARA, Calif. and SARASOTA, Fla. - Infinium Labs (OTC BB: IFLB) and Sun Microsystems (Nasdaq: SUNW) have announced plans to create a network and infrastructure to stream content for Infinium's flagship Phantom Game Service, direct to the living room. The Phantom Game service will be built upon a scalable, cost-effective and highly secure solution that harnesses the power of the network, allowing consumers access to a huge library of PC games on-demand.

Infinium Labs chose to work with Sun's Game Technologies Group after evaluating the offerings of several undisclosed providers in the space.

"The Game Technologies Group's understanding of online gaming, along with the broad-based expertise of the company in delivering content and services over networks, makes Sun an ideal partner for us," said Kevin Bachus, president, Infinium Labs. "Sun's expertise in delivering content from back-end systems to the user will now become one of our biggest assets. We can focus on offering consumers choice, convenience and ease of use with our PC and Java-based game service."

Infinium Labs and Sun plan to deploy joint marketing programs that underscore their shared vision for the video game industry.

"Infinium's mission is in line with Sun's goal to leverage the network as a vehicle to make entertainment content, information and services ubiquitous for consumers, and we want to empower the company to make that happen in the video game arena," said Chris Melissinos, chief gaming officer at Sun Microsystems. "We're glad Infinium's direct to consumer model furthers our initiative to help developers using Java technology to distribute and sell their games to a wide audience."

Sun is providing architecture design and back-end infrastructure as part of the overall solution. Sun's Java technology has been adopted by carriers, handset manufacturers and content companies that want to create and deploy advanced applications and innovative mobile data services. Java technology now powers more than 1.75 billion devices around the globe, including 579 million Java Powered phones, 600 million Java Card technology-enabled smart cards, set-top boxes, PDAs, printers, games and Web sites. Java technology and the online consumer marketplace Java.com let consumers enjoy the best the digital world has to offer, including games and puzzles, sports, chats, email, the arts, financial tools and much more.

Earlier this year, Infinium announced its support of the Java 2 Standard Edition Runtime Environment and Sun's game APIs, which will allow Java technology-based games to run on the Phantom service out of the box. The Phantom game service also supports PC games.

Infinium Labs plans to launch its Phantom Game Service in 2005.

About the Game Technologies Group
Sun's Games Technologies group is dedicated to the development of next-generation technologies that will allow game developers to do more with Java technology and reach more people than ever before. Sun brings its expertise in building highly scalable, reliable and serviceable online infrastructures to the video game industry, and ease the complexities of moving games online.

The Game Technologies Group works to develop solutions that leverage industry adopted standards for next-generation online games, simplifying the development process for multiple devices and the integration of those devices into one game framework. Sun leverages the momentum and strength of the Java platform to broaden game developers' reach across devices (i.e. PCs to mobile phones) by working with the open source community to build Java client technologies that leverage industry standards and allow those devices to communicate directly with Sun's game server architecture. 

To read the entire release, click here

SARASOTA, Fla. – Sept. 22, 2004 – In a move that indicates the video game industry is embracing digital distribution as a vehicle to expand the market, more than 20 major game publishers and independent developers have signed on to supply titles for the Phantom Game Service™, an on-demand game service to be offered by Infinium Labs (OTC BB: IFLB). 

In the first of a series of planned announcements, Infinium Labs unveiled an initial content partner roster for the Phantom Game Service that includes four of the top 10 PC publishers in the industry; game companies that represent, collectively, one-third of the current PC games market, according to PC Data’s July report. 

Publishers and developers supplying content include 21-6 Productions, BraveTree, Chronic Logic, Codemasters, Dreamcatcher Interactive, eGames, Eidos, Enlight Interactive, Framework Studios, GamerBlitz, Gameware Development, GarageGames, Global Software Publishing, Interplay, Kuma Reality Games, Legacy Interactive, Max Gaming, O-3 Entertainment, Riverdeep, Skunk Studios and Vivendi Universal Games. Atari Inc. has also signed on to supply select titles for the service.

The company has already secured more than 500 titles, a wide breadth of content which includes more than half of the 50 best PC games of all time, as rated by Gamerankings.com. “Our agreements demonstrate that game publishers and developers are recognizing that digital distribution offers them a significant opportunity to expand sales in conjunction with the existing retail model. They’re joining with us to promote market expansion,” Kevin Bachus, president and COO, Infinium Labs, said. 

In addition to securing a new audience for their latest releases, Infinium Labs’ content partners will recognize a new revenue stream from their back-catalog of previously released games. Retailers will get incremental revenue from the sale of hardware, subscriptions and games.

The Phantom Game Service will offer a wide range of game genres including Action/Adventure, Strategy, First Person Shooter (FPS) and Role Playing Games (RPGs) as well as Classic Games, Arcade Games, high quality Educational Titles, Games for Young Children and Board Games. Consumers subscribing to the service will be able to access the game of their choice anytime, day or night, from a consumer electronics device sitting near the TV in the living room, and play brand new titles as well as popular old favorites, games made by independent developers, imports and games not sold at retail.

The Phantom Game Service will help content creators reach several largely untapped audiences. Although avid gamers have expressed the highest level of initial interest in the service, Infinium Labs’ research studies also suggest that an enormous and growing segment of the population – lapsed gamers who played games earlier in life but no longer participate in a gaming lifestyle – are an important new target. 

“By making the game selection and purchase process as easy as watching television, we plan to welcome former gamers back into the fold. It’s always gratifying to see the immediate enjoyment they get from playing on our service,” Bachus said. “Amazed at how fast they can call up games and begin having fun, they see that the Phantom service offers something for the whole family.”
 
About Infinium Labs
Based in Sarasota, Fla., Infinium Labs (OTC BB: IFLB) is in development on The Phantom Game Service, the first end-to-end, on-demand game service. Delivered over broadband, the Phantom Game Service will offer casual and avid gamers a broad library of titles, available anytime, day or night, from the comfort of their living room. Infinium Labs is led by a management team with extensive experience in interactive media, entertainment, broadband services, technology and video games. For more information, please visit www.phantom.net.

Safe Habor Statement
Certain statements included in these press releases may constitute forward- looking statements. Actual results could differ materially from such statements expressed or implied herein as a result of a variety of factors including, but not limited to: the development of the Infinium Labs technology, the successful marketing and distribution of the Phantom Gaming System, acceptance by the market of Infinium Labs, products and technology, competition and timing of projects and trends in the gaming industry, as well as other factors expressed from time to time in filings Infinium Labs will make with the Securities and Exchange Commission (the "SEC"). As a result, these press releases should be read in conjunction with periodic filings Infinium Labs makes with the SEC. The forward looking statements contained herein are made only as of the date of this press release, and Infinium Labs undertakes no obligation to publicly update such forward looking statements to reflect subsequent events or circumstances. 
 

The Infinium Management Team

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TIMOTHY M. ROBERTS was the founder of our predecessor, Infinium Labs Operating Corporation, and has been our Chairman and Chief Executive Officer and a member of our board of directors since the merger of our subsidiary into Infinium Labs Operating Corporation. Prior to founding Infinium Labs in December 2002, Mr. Roberts was Chairman and Chief Executive Officer for Broadband Investment Group from 1999 through 2000. Broadband Investment Group was a holding company which owned a portfolio of service companies which handled technology layers 1-7. Broadband Investment Group was a general contractor of sorts which owned all of the sub contractors which allowed customers to have a one stop shop for network application design, build, hosting and also provided the managed services and security. Prior to that, he was Chairman and Chief Executive Officer for Intira Corporation from 1997 through 1999 of which Mr. Roberts was a co-founder, which provided network-based computing and communication services on an outsourced basis for our customers, allowing them to focus on their core business objectives rather than on building and supporting IT infrastructure. Mr. Roberts left Intira on good terms. The board had hired a CFO, 45 days later Mr. Roberts was in a boating accident which put him in intensive care for 6 weeks with a 1 year recovery time. Due to this leave of absence, the board (of which Mr. Roberts was a member) determined that it was in the best interest of the company for CFO to move from CFO and take over as the CEO and Chairman. Mr. Roberts was also a co-founder of broadband services provider Savvis    Communications (NASDAQ: SVVS).

KEVIN BACHUS became our President and Chief Operating Officer in January 2004. From 1999 through September 2003, Mr. Bachus was Vice President, Publishing of Capital Entertainment Group, of which he was a co-founder. Capital Entertainment Group provided funding and guidance to video game developers for development projects, as well as, selling complete or near-complete projects to publishers allowing developers to focus on working on the game, and cutting down the amount of input a publisher needed to the development process itself. From 1997 through 2001 Mr. Bachus held various positions at Microsoft Corporation. While at Microsoft, Mr. Bachus was a founding member of the Xbox project team where he was instrumental in the development and funding of the Xbox videogame console. Mr. Bachus served as the first director of third party relations and led efforts that brought the hottest games to XBOX from more than 200 of the world's leading developers and publishers. Mr. Bachus previously served as the group product
manager for DirectX, where he was responsible for promoting Windows as an entertainment vehicle and ensuring that the DirectX suite of tools became the
primary choice for games and multimedia developers. DirectX is a Microsoft Windows technology that enables higher performance in graphics and sound hen you're playing games or watching video on your PC (Personal Computer). At the core of DirectX are its application programming interfaces, or APIs. The APIs act as a kind of bridge for the hardware and the software to "talk" to each other. The DirectX APIs give multimedia applications access to the advanced features of high-performance hardware such as three-dimensional (3-D) graphics acceleration chips and sound cards. They control low-level functions, including two-dimensional (2-D) graphics acceleration; support for input devices such as joysticks, keyboards, and mice; and control of sound mixing and sound output. Because of DirectX, what you experience with your computer is better 3-D graphics and immersive music and audio effects.

RICHARD S. SKOBA became our Executive Vice President of Sales and Business Development in February 2004. Prior to joining us, Mr. Skoba was a HP Services from December 2002 through December 2003 where he served as a Director of Sales and a Director of Business Development. HP Services is a $14 billion business division of Hewlett Packard. HP Services provides customer support, consulting and integration and managed services. Mr. Skoba was a founder and corporate vice president at Intira Corporation, where he also held the positions of vice president of business development and vice president of sales from February 1998 through February 2001. While at Intira, Mr. Skoba provided the vision for Intira's Netsourcing business and provided strategic direction in product development, engineering and operations. Mr. Skoba's career includes his role as one of the founders of Direct Connect Systems, an enterprise storage management company

ANDREW SCHNEIDER became our Senior Vice President of Marketing in May 2004. Prior to joining us, Mr. Schneider served as Senior Vice President/General Manager for Sony Pictures Digital Entertainment (SPDE) from 1996-2003, where he was responsible for developing media software products and online broadband entertainment based on Columbia TriStar Television Group and Sony Pictures Entertainment brands. At Sony, Schneider was responsible for the online development of the award-winning Dawson's Desktop, the online companion to the hit show Dawson's Creek and the launch of interactive television versions of Wheel of Fortune and JEOPARDY! Schneider's career includes serving as Director of Marketing for Columbia TriStar Interactive and as senior producer for NBC Marketing Interactive from 1994-1996, NBC's Network Television Marketing division.

TYROL R. GRAHAM became our Vice President of Product Development in February 2004. Prior to joining us, Mr. Graham was at Microsoft Corporation from 1991 through 1999. While at Microsoft, Ty created the Windows Hardware Quality Labs (WHQL), a testing facility chartered with ensuring compatibility between Windows and the wide range of hardware and device drivers designed to work with Windows. Subsequently, Mr. Graham became the first hardware evangelist for DirectX, the multimedia technology that serves as the foundation for audio and video in Windows, and was responsible for driving adoption and support of DirectX graphics initiatives. In this role, Mr. Graham forged relationships between Microsoft and over 50 leading graphics component and board manufacturers such as ATI, NVIDIA, Intel, S3 and many others. In 2000 Ty was a founder of Wildseed Ltd., a technology start-up funded in part by Ignition Partners, to create youth-targeted wireless products and was personally responsible for lead product feature specifications, user interface design and industrial design.

RICHARD ANGELOTTI was a director of our predecessor, Infinium Labs Operating Corporation, since its formation and has been a member of our board of directors since the merger. Mr. Angelotti has been the CEO of Angelotti & Rosenberg Financial Group from March 2004 through the present. Mr. Angelotti served as the Principal of Global Financial Asset Management from August 2003 through February 2004 and was a Senior Vice President of Morgan Keegan from February 1999 through August 2003. He has over 12 years of experience as a financial advisor, and has held executive positions for major investment firms such as Northern Trust Bank of Sarasota, Bank of Boston in Florida, UBS Paine Webber, and Morgan Keegan. Mr.Angelotti holds Series 6, 7, 63, 65 Insurance and Annuity licenses. Drawing on his 13 years of experience as a practicing attorney, he has specialized his investment strategy to work with his clients on estate planning, tax planning, insurance needs, and annuities. Mr. Angelotti graduated from the University of Notre Dame, and received his Juris Doctor from the Loyola University of Law.
 

Infinium Labs - 5 Day Chart

Recent Share price (03-01-05): $0.395 52-Week High: $2.01 52-Week Low: $0.19 Shares Out: 126.730 million* Float: 96.578 million* Market Cap: $50.058 million*  Avg. Vol. 90 days: 3,041,296 shares  *Approximate

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