Virtual spectator acquisition
Endeavour Capital – Investors Guaranty Transition Successful Strategy
Auckland, New Zealand (2 April 2004)

Virtual Spectator (VS) announced today that it will become an operating unit of the worldwide group of Investors Guaranty Companies. Investors Guaranty raised its stake in the Company by acquiring from Endeavour Capital the balance of all outstanding shares of VS. The Investors Guaranty Companies also acquired full ownership of Pineapple Head’s Australian and United Kingdom operations.

The multi-million dollar transaction marks the successful completion of an investment strategy the two investors began over a year ago when Investors Guaranty Companies acquired a minority interest in VS behind Endeavour Capital’s initial acquisition.

The investors embarked on a major IP expansion programme to become a leader in sports animation. Concurrent with acquiring Pineapple Head Australia, the investors undertook substantial funding of the development of new VS technology. The pre-release version of Virtual Spectator’s latest sailing animation technology was well received at the 2003 King Edward VII Gold Cup in Bermuda. VS has also been awarded the Royal Television Society award for Sports Innovation.

Outgoing Executive Chairman, Neville Jordan, said today “Virtual Spectator is now uniquely positioned on the world stage with capabilities far beyond its original America’s Cup roots. The stabilization and promotion of this great brand, Endeavour’s leadership in expanding VS’s intellectual property and product offerings, and our strategic investment partnership with Investors Guaranty have allowed us to restore VS to a position of prominence in its industry. Today’s acquisition by Investors Guaranty will ensure yet further success for this New Zealand icon.”

Douglas L. King, Chairman and CEO of Investors Guaranty Companies, stated “Virtual Spectator and Pineapple Head will become part of Investors Guaranty’s worldwide operations, with the group’s high-end animation development continuing in New Zealand. We have enjoyed our co-partnering with Endeavour Capital in relaunching one of New Zealand’s corporate landmarks. We appreciate working with Mr. Jordan and the VS Board in such a successful turn-around strategy and we look forward to partnering with Endeavour on our next strategic investment.”