BGII BGI Inc (GM)

BGI, Inc. (Pink Sheets: BGII) today announced that since December 4, 2006 the following significant events have transpired: In response to the Alabama Supreme Court ruling issued in the case of Barber v. Jefferson County Racing Association, Inc., Docket No. 1050857 (Ala., Dec. 1, 2006) becoming a final, enforceable judgment BGI ceased operations in Alabama. On December 6, 2006 the Board of Directors of BGI met and authorized the retention of outside counsel to file a claim for the return of the $892,054.14 seized by the United States Government. The Board also put in place policies and procedures to insure that there would be no violation of the reporting requirements of 31 U.S.C. �5313(a) for cash deposits into financial institutions. On August 27, 2007 a one-count indictment was filed in the United States District Court in the Western District of Oklahoma, charging Pre-Paid Plus, Inc., a wholly owned subsidiary of BGI, with knowingly and for the purposes of evading the reporting requirements of 31 U.S.C. �5313(a), structuring cash deposits into financial institutions. On March 3, 2008, Pre-Paid Plus, Inc., agreed to plead guilty to the one count indictment, forfeit the seized funds and pay a fine of $100,000.00 and a final judgment was entered by the court. On March 29, 2007 BGI was served with a summons in a civil case styled Cyberdyne Systems, Inc., v. BGI, Inc. case number CV06-02954-PHX-ROS, filed in the United States District Court, District of Arizona. The principal claim of the complaint is copyright infringement and breach of the Cyberdyne Exclusive Distribution Agreement. BGI has retained outside counsel and is vigorously defending the suit and has filed breach of contract counterclaims against Cyberdyne. This litigation is in the discovery phase and the parties anticipate a jury trial of the issues before year end. On July 12, 2007 the Board of Directors of BGI accepted the resignation of William Schwartz as a member of the Board and as BGI�s President and Chief Executive Officer. The Board retained Reid Funderburk as the new Chief Executive Officer and he was elected to the Board. Mr. Funderburk has been associated with BGI for over 13 years, having served BGI in many positions of responsibility including Chief Executive Officer. Mr. Funderburk brings a vast amount of institutional knowledge to his new positions. On September 19, 2007 the Board of Directors deemed it in the best interests of the Company to purchase One-Cool Product, Inc. One-Cool Product produces and distributes a product branded under the name Bottle-It used as an attachment to canned drinks to prevent spillage. The Bottle-It is sold with logos imprinted such as a major university or a company name. One-Cool Product was previously owned by Reid Funderburk and he agreed to sell the company to BGI for his original cost. The Bottle-It products can be viewed at www.onecoolproduct.com. On December 11, 2007 the Board of Directors authorized the creation of a wholly owned subsidiary limited liability company in Texas to be named Clippl, LLC. The Board also authorized the purchase from Kevin Dill of the technology and the web site domains associated with Clippl, including clippl.com and clippl.mobi. The purchase price included both equity and cash. Clippl is new streaming mobile technology allowing the user to send an instant video message to the recipient using a cell phone or the web. Clippl technology can be viewed at www.clippl.com. On January 11, 2008 BGI sold its phone switch and associated assets to Switch Dynamics, LLC. The management of Switch Dynamics, LLC has many years of experience in the telephonic communications industry. On January 15, 2008 BGI sold 350 Cyberdyne phone card dispensers and all the rolling stock and assets located in Oklahoma to Roland Leasing, LLC. The management of Roland Leasing, LLC has a long history of doing business in Oklahoma with experience in both the bingo industry and the sweepstakes industry. BGI feels certain that Roland Leasing will continue to serve the customers of BGI in the manner to which they have become accustomed and deserve. On January 18, 2008 BGI invested in SnapPages, LLC. SnapPages is an online SaaS (Software as a Service) provider that caters to a mainstream audience. SnapPages offers a suite of online applications that allow the average person to perform several different tasks online. Users can upload and share photos, organize a calendar, keep in touch with friends, and even build an entire website all online. The goal of SnapPages is to create online applications so simple and intuitive that anyone can use them regardless of their technical expertise. SnapPages is currently in a beta testing phase with plans to launch this summer. You can visit snappages.com to try out all the applications online. BGI�s interest represents a fifteen percent member interest in SnapPages, LLC. The SnapPages technology can be viewed at www.snappages.com. The management of BGI is excited about the continued opportunities associated with the Cyberdyne Exclusive Distribution Agreement and the new ventures being pursued by BGI in the areas of software development and green technologies. This press release may contain forward-looking statements including BGI�s beliefs about its business prospects and future results of operations. These statements involve risks and uncertainties. Among the important additional factors that could cause actual results to differ materially from those forward-looking statements are risks associated with the overall economic environment, changes in anticipated earnings of the company and changes in the competitive marketplace. In addition, the factors underlying company forecasts are dynamic and subject to change and therefore those forecasts speak only as of the date they are given. The company does not undertake to update them; however, it may choose from time to time to update them and if it should do so, it will disseminate the updates to the investing public. About BGI, Inc. BGI, Inc., (http://www.bgicorp.com) is engaged in new business development concentrating its efforts on companies with growth potential in software and web 2.0 technologies as well as companies with green forward thinking technologies while continuing to strengthen its position in the sweepstakes industry. BGI holds an exclusive distribution license for the States of Alaska, Alabama, Washington, Texas, Oklahoma, Kansas, and North Dakota for distribution of the Cyberdyne Charity Station promotional sweepstakes machine and the Lucky Strike Prepaid Phone Card Dispenser. BGI, Inc. was founded in 1994 and has offices in Austin, Texas. The Company currently trades on the Pink Sheets under the symbol BGII.