This little effect was the result of a funny idea that DSC of Beng! had. You know that the first name of the guy behind Zap't'Balls, Super Cauldron and Prehistorik 2, Elmsoft, is Elmar. Incidentally "Elmar" an anagram of "Lamer" - the infamous title lots of computer users decorate themselves with (or rather are being decorated with).
So DSC had the idea to create an Elmar logo that transfers into a Lamer writing. DSC also came up with a font and so I created the program on the Beng Euromeeting in Wuppertal 1993. So we've had our loughs, Elmar was amused and that's it. There's nothing much to say. No big effects, no fancy programming, just a simple double buffered sprite animation.