On Thursday 17 May 2001, potential investor Vivendi informed FIFA President Joseph S. Blatter that the company would not proceed with the takeover of FIFA marketing partner ISL/ISMM.

As a consequence of this decision, FIFA today terminated its marketing agreements with ISL/ISMM. The rights involved in these agreements will now return to FIFA. FIFA will now manage the marketing rights for its activities, notably for the 2002 FIFA World Cup Korea / Japan, through its own marketing company in a form to be announced. FIFA Marketing AG was created at the beginning of April as a precautionary measure to counter this situation.

The Kirch Group, which acquired the television rights for the 2002 FIFA World Cup and the 2006 FIFA World Cup jointly with ISMM in 1996, can now avail itself of its option within 30 days of the adjudication of bankruptcy against ISL/ISMM on the rights for all countries outside Europe (with the exception of the USA), which were previously marketed by ISL/ISMM.

At the start of April ISMM was forced to register its indebtedness with the bankruptcy court and at the same time applied for a deferment of bankruptcy. This petition was rejected in the first instance. On the appeal of ISL/ISMM at the start of May, the Judiciary Commission of the Canton of Zug granted deferment of the adjudication of bankruptcy until 31 May 2001.

FIFA will release further information on this matter in due course.

FIFA COMMUNICATIONS DIVISION
Andreas Herren
Tel: +41 1 254 9725
Fax: +41 1 384 9696