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Excapsa Software Inc. (AIM: XCP) notes the commentary in today’s UK press which refers to the sale of Excapsa’s assets and the source of the deferred revenue to be received in accordance with the sale.

On 12 October 2006, Excapsa announced the sale of all the Company’s assets consisting of its software, gaming network and related intellectual property to Blast Off Limited, a Maltese based, privately owned company for US$130 million.

The press commentary stated that the sale was a disposal of “its US-facing operations”. The sale is not a limited disposal of certain assets. Instead, the Company’s entire operating subsidiaries have been sold, and the Company no longer has an operating business.

The Company would also note that as part of the disposal, the deferred portion of the purchase price is not permitted to be paid from revenues derived from the United States. The Company finally notes that, prior to the sale, its royalties derived from customers from outside the United States were more than sufficient to pay the deferred instalments.

The Company is exiting the Internet gaming software licensing business in its entirety.