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American Bingo Meets with Nasdaq Officials

During the 45-minute meeting, the company detailed its recent history and emphasized several critical considerations. Among other reasons American Bingo said its stock price has tanked has been "understandable uncertainties created by the mass resignation of its board of directors and management.'' No reason was given for the mass exodus.

The company was also badly hurt by a South Carolina Supreme Court decision that effectively outlaws video gaming effective June 30, 2000. It had operated about 800 machines in that state.

American Bingo offered a plan to meet Nasdaq's requirements. This includes a new, aggressive management team that owns a substantial percentage of the company's stock. The company said it will continue to repurchase its stock with all free cash above $4 million.

The plan also calls for management to continue to purchase stock in the market, and to improve its communication with shareholders, investors and the public.

"We had a productive meeting with the Nasdaq Listing Panel and made our best case for the continued listing of BNGO on the Small Cap market,'' said Jeffrey L. Minch, President of American Bingo.

In January the company reported a 22 percent decrease in fourth quarter revenue, from $3.7 million in 1998 to $2.9 in 1999. The fourth quarter 1999 net loss increased to $3.1 million from $1.6 million in the fourth quarter 1998.

Revenue for the year 1999 totaled $13.1 million, down 15 percent from $15.4 million in 1998. Net loss for the year increased to $3.8 million from $2.6 million in 1998.

American Bingo manages 20 charitable bingo parlors in Texas, Alabama and South Carolina. The company recently announced the development of two start-up bingo halls in Alabama that will be placed in service in the calendar year 2000. It said the charitable bingo industry is a $7 billion market in the United States.

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