According to legendary Australian slots manufacturer Len Ainsworth, the Unicum Group, which is the largest gaming equipment supplier and operator in Russia, was a 'natural fit' for his latest venture into the gaming industry. Having founded Aristocrat over fifty years ago, the 81-year-old billionaire founded Ainsworth Game Technology nearly ten years ago and has taken his new brainchild into nearly 40 countries.

Asked about the idea behind a proposed merger with the Russian giant led by Boris Belotserkovsky, Mr Ainsworth said: "We have a very good personal relationship with Unicum, it just came up in the general course of discussion of how much more we could do together than alone." Adding that AGT was increasing the number of countries by the month to their already busy schedule, and that a merger with Unicum would enhance AGT's position in overseas markets: "It really is a huge market and to get in there and match it with the largest people such as IGT and Aristocrat, we need a certain amount of muscle ourselves."

Mr Ainsworth added that should the merger deal go ahead, both companies would function separately, and was confident that AGT shareholders would welcome the merger, dismissing suggestions about the volatility of the Russian market, which is developing at breakneck speed, indicating that in his experience Russian companies are coping with the pace of development and learning fast about the free market economy: "Most shareholders will realize it’s going to be a larger company with greater opportunities, the gearing will be lower, the cash flow will reduce debt and overall we would expect there will be better returns for shareholders."

AGT has endured a patchy performance since listing in 2001, netting profits of A$2.1 million in 2003/04, following a net loss of A$14.8 million in 2002/03. In the first half of 2004/05, the company anticipated a net loss of A$1-A$2 million, although sales improved by 40% to A$40.7 million. Amidst claims that the figures were affected by a contract delay caused by software problems that had been resolved, fulfilling the contract in early February, Mr Ainsworth was satisfied that the year would finish: "Not too badly. We're looking to strengthen financially and have a more satisfactory bottom line and we don't see any reason why that won't happen." Should the merger go ahead, the AGT stock which closed 9 cents higher at A$8.26, will attract more buyers as the Russian market expects to double in size during the next two years. (E-02.15.05)

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