Japan's Sammy looking at bond-for-bond exchange, other alternatives for convertible

New York, May 20 - Sammy Corp. said it is considering alternatives for its convertible bonds due 2009 including a bond-for-bond exchange offer.

The review follows the announcement that Tokyo-based Sammy will acquire Sega Corp.

Sammy said reports that there will be an early redemption of the convertible by Sept. 30 "are incorrect."

The company cited the bonds' terms and conditions which indicate that in the case of a merger through a share exchange Sammy is required to execute a supplemental trust deed. If that is not possible or practicable then Sammy must make an exchange offer for the bonds. Should some bondholders not accept the offer, Sammy may call any remaining bonds for redemption. Up to March 2, 2005 the redemption price is 104%.

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