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Ainsworth Could Lose Millions

21 May 2002

AUSTRALIA – As reported by the "Pokies king Len Ainsworth has suffered another setback with his latest gaming venture. Ainsworth Game Technology warned yesterday it could lose as much as $8 million (US$4.5 million) this year.

"…Citing delays in gaining regulatory approvals for its flagship Ambassador machine, AGT said it would lose between $3 million (US$1.6 million) and $8 million for the year to June 30. AGT's prospectus issued last November forecast a $952,000 profit.

"The profit downgrade comes less than two months after AGT chief executive Jim O'Mahony resigned, having spent just nine months with the company.

"…Analysts cite the competitive nature of the poker-machine market, coupled with Ambassador's higher price, for the sales shortfall.

"AGT's original profit forecast had also assumed the sale of 820 machines in Queensland and Victoria. This forecast was predicated on AGT winning regulatory approval for Ambassador in Queensland in February, followed by approval in Victoria in April. AGT is still awaiting product approval in Queensland and licence approval in Victoria..."

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