Casinos, Inc. announced today that it has been advised by Silverstar
Development Limited (“Silverstar”) that judgment has been handed down by
the Supreme Court of Appeal of South Africa for the Johannesburg project.
The Supreme Court has dismissed the appeal of the Gauteng Gambling Board
and is upholding the earlier decision of the High Court ordering the award
of a casino license to Silverstar for the West Rand area of the Gauteng.
While the company believes this represents a positive development, there
remain a number of conditions prior to the exercise by Gold Reef Casinos
Resorts and Akani Leisure Investment of the purchase options they hold
under the agreements entered into with Century Casinos (through a
subsidiary) for the sale by the company of all its interests in the
project. There consequently remains no certainty as to the prospects for,
and timing of, the payments the company would be due to receive upon
exercise. As announced on December 1, 2004, details of the purchase options are as
follows. The total selling price to the Company was R50.3 million,
approximately $8.5 million. An initial payment of R10.0 million,
approximately $1.7 million, has been received in 2004 for the sale of land
owned by the Company’s South African subsidiary for the casino site and
reimbursement of expenses and previously advanced funds to Silverstar. The
balance of R40.3 million, approximately $6.8 million, is contingent upon
certain conditions as outlined in the above paragraph.