Century Casinos enters into agreement to acquire casino in Canada

The total consideration for the transaction is us$ 10,650,000, plus/minus a working capital adjustment. The Silver Dollar is a 8,639 sqm casino facility located on approximately seven acres of land in Calgary. The casino facility includes 504 slot machines, 16 table games, 15 video lottery terminals, two restaurants, a lounge, a 464.5 sqm showroom, an 1,672 sqm convention center and a 38-lane bowling alley.

Last April 15, Evergreen Gaming Corporation, the company that acquired the Silver Dollar in 2007, filed for protection from creditors under the Companies' Creditors Arrangement Act in Vancouver. On June 24, a receiver was appointed by the courts to manage the assets of FSSD and EGC. We believe its current performance is not indicative of its real potential.

Century Casinos already owns and operates a casino in Alberta, Canada, namely the Century Casino & Hotel in Edmonton. That property generated net operating revenue of us$ 21.8 million and Adjusted EBITDA of us$ 7.5 million for the trailing twelve months ending September 30.

"We are excited about expanding in Alberta, Canada, by entering the Calgary gaming market with the addition of the Silver Dollar to Century's portfolio of casino hotels. Once we have made certain improvements at the property and refined its market position, we believe the Silver Dollar has the potential to substantially contribute to our overall performance", said the company's Co CEOs Erwin Haitzmann and Peter Hoetzinger.

The transaction is subject to customary closing conditions, including the receipt of necessary regulatory and governmental approvals. The transaction is expected to close in the first quarter 2010. The total purchase price will be paid out of the company's cash on hand.