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Analysts: Las Vegas Sands is a Good Bet

13 December 2004

NEW YORK – As reported by the CBS MarketWatch: "It can be tough to make a buck at the casino. But Las Vegas Sands' IPO may well be a winner.

"With a strong operating history and growth potential in Las Vegas and in Asia's Macau, Las Vegas Sands could offer a significant payout for those investors willing to play a hand.

"…The company now plans to expand with the $1.6 billion Beverly Hills-themed Palazzo resort, to be built adjacent to the Venetian.

"As impressive as its Las Vegas operations appear to be, the true growth potential is in a tiny island off the coast of China -- Macau.

"With the Chinese government's recently eased travel restrictions and an enthusiasm for gambling among Asian cultures, Macau is the epicenter of gaming in Asia. Even with just a handful of casinos, Macau is expected this year to exceed the Vegas strip in total gaming volume.

"Adelson's company was granted one of three coveted concessions in Macau and has quickly capitalized on the opportunity by opening the first Vegas-style casino in Asia. The $265 million Sands Macao was opened in June and has been wildly successful. The third-quarter cash flow generated by the casino alone was $68.5 million, more than 25 percent of the initial capital invested for its construction. However, Las Vegas Sands views this success as only the beginning.

"…But there are concerns. After the construction of its two developing properties, the company will still be dependent on a handful of entities in only two markets…"

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