OEG suspends operations in Ukraine

The regulation of the minister of finance is subject to the recent events that resulted in casualties due to the fire in one of the OEG competitors' gaming facilities located in Dnepropetrovsk. OEG finds the suspension of casino licences illegal and disproportionate. According to OEG, Ukrainian casinos of OEG do not violate any safety requirements.

In addition, today the Ukrainian parliament passed a law suspending the activities of all the gaming enterprises in Ukraine. Ukrainian government will be given an order to develop a new Gambling Act within three months. The law, which suspends the activities of gaming enterprises, must be approved by the Ukrainian president.

As of today, the casinos of the Ukrainian subsidiary of OEG are closed and their employees have been sent on holiday without pay. The operating revenue of OEG's Ukrainian subsidiary is approximately 12 % of the consolidated operating revenue of OEG.

Olympic Entertainment Group’s first quarter net loss before income tax was EEK 97.1 million. The Group ended the quarter with sales revenue of us$ 42 million. Total consolidated revenue (sales revenue and other income) surged to 29.5 % less than the first quarter of 2008 total consolidated revenue of us$ 59.9 million.

Consolidated operating loss for the first 3 months of 2009 amounted to us$ 8.4 million. The operating profit for the first 3 months of 2008 totalled us$ 6.4 million. Consolidated net loss for the first 3 months of 2009 totalled us$ 8.4 million, in the first quarter of 2008 the net profit amounted us$ 5.3 million.